GRi Business, Economics & Finance 15 –
04 - 2003
Accra (Greater Accra) 15 April
2003-Martin Eson-Benjamin, Chairman of Ghana Breweries
Limited, on Friday tasked the private sector to be more assertive in playing
its roles and urged government to provide an even playing field for their
operations.
He said while government needed
to proceed cautiously with the liberalisation of the economy, the private
sector must assume the driver's seat in the "Golden Age Of
Business".
He said the oft-repeated demand
by business leaders on government to offer an even playing field, within an enabling
environment tended to cloud the vision of entrepreneurs and slowed down their
ability to react positively to some of the inviting business stimuli.
In addition weak macro-economic
environment and non-existent regulatory frameworks also present organisations
with an easy alibi for poor performance. Eson-Benjamin
was speaking at the annual dinner dance of the
He said it was unfortunate that
managerial inadequacies such as improper planning, controlling and ineffective
management of the internal organisation were often not cited for poor
performances, adding that these contributed to the un-competitiveness of some
businesses.
Eson-Benjamin asked Accountants to
play their watchdog roles efficiently to stem the various incidences of fraud;
leakages and general financial mismanagement, adding that they had the social
responsibility to safeguard the health of the investments of individuals,
companies and government.
He said it was important that as
professionals they should be guided by their fundamental principles of
consistency, objectivity, prudence, conscientious performance and fairness of
presentation among other things.
"In the long-run, the
aggregate of successes gained through prudent management of corporate and
public sector finances, would reflect in the positive
growth, which the economy would record," he said.
However, Eson-Benjamin
said despite such good professional principles guiding Accountants'
performances the public was often worried about reported incidence of financial
malpractices in both the public and private sectors.
He attributed such improper acts
to violation of rules, regulatory systems and internal control systems and to
some degree professional misconduct. "The continued growth of these vices
tells a story about the quality of the virtues of probity and accountability in
every society in which it occurs."
Eson-Benjamin also called on the
Institute to make a meaningful contribution towards the development of the
Ghana Stock Exchange by encouraging their clients to take advantage of the
benefits available to them on the Exchange.
"Indeed, every step along
the path to the Exchange demands an Accountant's input. Therefore, if
businesses are apathetic and shudder to join it, issues could be raised about
your role and advice."
John Klinogo,
President of the Institute, said businesses would benefit greatly when
professional Accountants were engaged to run their activities. The highlight of
the programme was the award of cash prizes to deserving winners of the ICAG
Financial Journalist 2002 competition.
Amos Safo
of the Public Agenda won the first prize of four million cedis. Selassy Adjadogo of the Ghanaian
Times and Nii Noi Vanderpuye were the first and second runners-up, taking
home 2.5 million and 1.5 million cedis, respectively.
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Currency Buying Selling
Cedis Cedis
U.S. Dollar 8,525.64 8,723.91
Pound
Swiss Franc 6,091.19 6,229.72
Canadian Dollar 5,845.10 5,976.92
Danish Kroner 1,228.22 1,256.06
Japanese Yen 70.61 72.23
South African
Euro 9,118.90 9,328.21
CFA Franc 13.90 14.22
Naira 67.62
69.19
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Accra (Greater Accra) 15 April
2003- Ghana Breweries Limited (GBL) would hold an Extraordinary General Meeting
on Tuesday to seek shareholders' approval to write off the deficit on the income
surplus account through a reduction of the stated capital of 74.4 billion cedis.
Clement Nouwens,
Financial Director of GBL, said this in
The meeting would also address
an increase in GBL's authorised share capital and
convert the Social Security and National Insurance Trust's (SSNIT) outstanding
preference shares into ordinary shares.
The company has a deficit on its
income surplus account of 40.6 billion cedis making it difficult for dividends
to be declared. The amount would be raised through the authorisation of 400
million ordinary shares to be issued after the meeting gives approval.
Explaining why the company must
undertake the capital restructuring exercise, Nouwens
mentioned the huge debt service payment of 9.4 billion cedis while suffering an
exchange rate loss of 7.2 billion cedis last year.
"The exchange losses were
attributable to the impact of the 35 per cent depreciation of the Cedi,
especially against the Euro during the year," he said. "The increase
in energy and water tariffs also resulted in higher costs for the
company;" he said.
Nouwens said the steep depreciation of
the Cedi against the Euro in 2002 resulted in an increase in cost of raw
materials, packaging materials and spare parts. He welcomed the injection of
five million Euros by Heineken International, a major shareholder, for capital
restructuring and the decision to convert its 10.6 billion Zero
Coupon Convertible Bond into shares.
"This is very significant,
since this will reverse the weak capital structure of the company, thereby
reducing foreign exchange exposure and eliminate the high interest
burden." He said SSNIT, a preference shareholder, has also agreed to
convert its preference shares valued at 42 billion cedis into ordinary shares
under the Capital Reduction Scheme.
Nouwens urged other shareholders to
maintain their effective shareholding in GBL by fully subscribing for their
rights. GBL Management would, on the approval of the meeting, authorise the
issue of 400 million new shares to all existing shareholders of the company on
the same terms and conditions according to the number of shares they currently
hold in the company. GBL is a merger of Kumasi Brewery Limited and the former
ABC Brewery Limited and was created in 1998.
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A statement issued on his behalf
by his solicitors, Kofi Aboagye and Company said Yeboa Amoa had not breached any rules of the GSE nor had he
engaged in any unethical conduct since the GSE Council policy on disclosures
applied to interest in listed companies only.
It cited investigations
conducted by the GSE Council, which exonerated Yeboa Amoa
from any breach in his investment in the company and stressed that the
Exchange's rules and its employment contract with "our client" did
not forbid him from investing in a private company.
It described as prejudicial and
inimical SEC decision to go public with its ruling when other superior avenues
of redress had not been exhausted. "As far as we are concerned, the
decision of SEC is a nullity and we shall so invite the court to declare the
same," the statement said and added that proceedings had been commenced in
the High Court for the prerogative Writ of Certiorari to be issued and to quash
the decision of SEC and its AHC.
The statement accused SEC of
imposing the sanctions with an aim of tarnishing the hard won reputation of
Yeboa Amoa. "In any case, we find it amazing
that the Council which administers the disclosure rules and in whose
jurisdiction this complaint falls, acquits our client of unethical conduct
concerning the non-disclosure of his directorship of Investek
because the said company is not listed on the GSE, nevertheless, SEC goes ahead
and finds our client culpable and publishes same."
The statement described as
ridiculous the Administrative Hearings Committee endorsement of the
complainant's assertion that Yeboa Amoa had diverted
business from the Licence Dealing Members (LDMs) to Investek.
It explained that since Investek was not an LDM, which by the rule of the Ghana
Stock Exchange could sponsor listings and carry on trading in listed
securities, it was difficult to understand how Yeboa Amoa
could divert any prospective GSE Investor to Investek.
The statement dismissed the
claim that Yeboa Amoa used the Exchange's time and
resources to promote the business of Investek, saying
that he was not an Executive Director of the company. Besides
the company had its own Chief Executive Officer, Staff and Office.
"SEC's
assertion that our client subjected his interest in GSE to that of Investek is unfortunate and misguided, if not
malicious." The statement said it found the alleged suspension misguided
since Yeboa Amoa was neither "a director nor an
officer of a licensed Stock Exchange, Dealer, Investment Advisor, Mutual Fund,
Unit Trust and Other institution licensed by the Commission," adding that
a person could not be reprimanded for doing what the law does not expressly
proscribe.
The statement further stated
that SEC had failed to communicate to Yeboa Amoa the statute
and the section of which he had breached. "It is interesting further to
note that contrary to SEC's (AHC's)
own rules, SEC has to date not provided our client with a charge sheet
detailing what offence our client has committed and under what statute.
Nevertheless, SEC has found our client culpable."
The SEC last Monday disqualified
Amoa from serving as a director or officer of a
licensed Stock Exchange, Dealer, Investment Adviser, Mutual Fund, Unit Trust or
any other institutions licensed by the Commission, for a period of six months
with effect from 27 March 2003 for unethical conduct in the non-disclosure of
his interest in Investek. He was also reprimanded for
his conduct.
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Accra (Greater Accra) 15 April
2003- The Ghana Stock Exchange All-Share Index, the benchmark index of the
Accra Bourse, barely moved on Monday on a quiet day that saw only two equities seeeing price changes.
The index ended up by 0.19
points at 1,714.94 points from 1,714.75 points. Change for the year also rose
to 22.91 per cent. There were two price changes, both positive. Home Finance
Company (HFC) gained five cedis at 1,230 cedis and Unilever was up at one cedi
at 6,008 cedis. Market capitalisation ended higher at 7,678.31 billion cedis
from 7,677.85 billion cedis on Friday.
The following are the last
prices of listed equities in cedis:
ABL 426
AGC 28,500
ALW 4,300
BAT 1,300
CFAO 72
CPC 630
EIC 5,005
FML 2,200
GBL 531
GCB 5,400
GGL 1,218
HFC 1,230 +5
MGL 258
MLC 310
MOGL 19,761
PAF 750
PBC 390
PZ 2,032
SCB 32,001
SPPC 390
SSB 6,621
SWL 285
TBL 5,010
UNIL 6,008
+1
CMLT 460
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