GRi Business, Economics & Finance 12 – 12 - 2002

AMA closes down Millicom and Scancom

Lawyers, bankers and other professionals to export services

Ghana News Agency maintains story is factual

 

 

AMA closes down Millicom and Scancom

 

Accra (Greater Accra) 12 December 2002- The Accra Metropolitan Assembly (A.M.A) on Wednesday continued its exercise to retrieve tax owed it leading to the closure of Millicom Ghana Limited and Scancom Ghana Limited, operators of Mobitel and Spacefon respectively.

 

Both companies owed the assembly a business operating permit fee of 2.5 billion cedis. The exercise, which started on Tuesday with the temporary closure of the head offices of Barclays and Standard Chartered banks on the high street in Accra, was aimed at retrieving monies owed the assembly.

 

It was also to warn corporate bodies operating within the Accra metropolis of their responsibilities to pay taxes promptly. Mr. Parker Allotey, Public Relations Officer of the A.M.A told GNA that, "the exercise will continue until all monies owed the assembly is collected."

 

He said the Assembly was prepared to accept negotiated payments with the two cellular phone companies but cautioned that, "If they refuse to comply with our directives they will have no option than to close down the two organisations."

 

He also said that the AMA task force would on Thursday descend on Ghana Telecom for a similar exercise. A visit to the Millicom Ghana Limited and Scancom Ghana Limited by the GNA indicated that the assembly's task force arrived at the premises of the two companies as early as 0700hours to perform the exercise.

 

Workers and customers that came to transact business with the companies were prevented from entering the offices. Efforts made to talk the head of the task force proved futile. Meanwhile in a statement signed by some of the telecom operators in the country described the action by the AMA to shut down Mobitel and Spacefon as without notice or due process.

 

Consequently, the companies, Millicom Ghana limited, Scancom Limited, Capital Telecom Limited, Celltel Limited and Western Telesystems Ghana Limited have filed a writ challenging the legality of AMA's new tax and to restraint AMA from interfering with their operation.

 

The statement said the AMA has illegally levied a huge tax on every telecom user in Ghana through the network operators and also discriminates against telecom operators by seeking to charge on a per customer basis when almost all other such fees are set on a flat basis depending on the type of business.

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Lawyers, bankers and other professionals to export services

 

Takoradi (Western Region) 12 December 2002- The Ghana Export Promotion Council (GEPC) has initiated plans to have professionals like lawyers, architects, bankers, insurance brokers to export their services.

 

Kofi Essien, Acting Western Region Zonal Officer of the GEPC, said this at a day's seminar organised by the Export Finance Company (EPC) and the GEPC for about 100 manufactures drawn from the Western Region at Takoradi on Wednesday.

 

He said workshops to that effect had been organised for these professionals and the modalities were being worked out with the International Trade Centre (ITC) to start the process.

 

Essien said the GEPC recognised the tremendous market potential offered by the ECOWAS sub-regional market with an estimated population of 150 million.

 

He said in order to take advantage of this potential and to realise the full benefit of the ECOWAS Trade Liberalization Scheme (ECLS) the GEPC was undertaking a market survey in the ECOWAS sub-region and market access facilitation for selected Ghanaian producers in selected locations in the sub-region.

 

Mr. Essien said the GEPC had plans to establish Internet based trade information and E-Commerce system to enable the council to communicate and access information. Mr. Essien said GEPC was working with companies in the manufacturing sector to access procurement orders from international agencies like the Red Cross and the United Nations High Commission on Refugees (UNICEF).

 

He said four companies have got orders from the Red Cross and the UNICEF and would be exporting plastics and household utensils.

 

Mr Emmanuel Asiedu Appiah, General Manager of the EFC, stressed the need for every country that seeks to develop to have specialized institutions in place that would provide custom-made solutions to exporters.

 

This missing gap, in the economy of Ghana, he said, is what EFC and Alliance Generalo De Surveillance (Ghana Limited) (AGDS) are attempting to fill for the Ghanaian exporters.

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Ghana News Agency maintains story is factual

 

Accra (Greater Accra) 12 December 2002- The Ghana News Agency says it stands by its story on the Serious Fraud Office (SFO) report citing three officials of the Tema Municipal Assembly (TMA) for causing 1.2 billion cedis financial loss to the State through the award of two contracts by the assembly.

 

The officials involved are Mr Samuel Evans Ashong Narh, Municipal Chief Executive, Alhaji I.M.T. Husseini, Co-ordinating Director and Mr Samuel Aryee, Finance Officer, all of TMA.

 

The Ghana News Agency had filed a story on the commencement of SFO investigations into the awards of the contracts in June and was, therefore, obliged to follow up till the report was released.

 

The Agency, therefore, made it a duty to check on the outcome persistently. Indeed the Tema Office of the SFO was not ready to release the report but the Agency kept on making many telephone calls to them and had to visit the Tema SFO on six different occasions.

 

It was because of the persistence, that the SFO Tema was compelled to read extracts from the report to the Agency, claiming that if they released the report, the Tema Correspondent of the Agency would go and make photocopies since he was a Journalist.

 

The Agency was reacting to a statement by Mr Kweku Baako Jnr., Editor of the Crusading Guide, on a Ghana Television Breakfast Show programme on Tuesday 10 December.

 

The decision to come out with the report was in line with GNA's principle of speed and accuracy. This was not the first time the Agency had done such a thing. It did that during the 2000 Elections when it came out with the provisional results released at the collating centres before the Electoral Commission certified them.

 

The Ghana News Agency on Saturday November 30 carried a report on the complicity of the three officials in the award of two contracts.

 

The two contracts that were awarded in November 2001 were the spraying and disinfestations of the final disposal site at Kpone, which was awarded in sum of over 900 million cedis and the development of computerised system for billing, payment management and revenue mobilisation at a cost of 300 million cedis.

 

The SFO report noted that the spraying and disinfestations contract did not go through tender for competitive bidding as required by the guidelines for the award of contracts by district assemblies.

 

The report noted that what the Municipal Chief Executive, the Co-ordinating Director and the Finance Officer claimed was urgent and had to award that contract administratively, without passing through the municipal tender board, could not be established, because the issue of decommissioning of Kpone refuse dump had been planned since 1998.

 

It explained that there was a design plan by the Environmental Protection Agency (EPA) for the Kpone refuse dump to be decommissioned, and the process started in 1999.

 

The TMA and the Tema Development Corporation (TDC) had sought the assistance of industries and companies within the municipality, which provided sand as well as money to buy fuel for equipment to be used for the removal of refuse.

 

The SFO report said, the contract which was awarded by the Co-ordinating Director, who had claimed that he was directed by the Municipal Chief Executive, showed that there was no competitive bidding.

 

According to the report if the laid down regulations had been followed, such a huge some of revenue being taxes levied on people would not have been spent.

 

The report pointed out that if the contract had been given on tender, the assembly would have referred them to the committee on the decommissioning exercise that had started since 1999.

 

On the computerisation contract which was undertaken by "A 5 Consult" in Accra, the SFO report noted that there was no need for it, because the Land Valuation Board (LVB) had been awarded the contract and had started to computerise properties in the municipality at the cost of 580 million cedis.

 

It said for the three officials to invite another contractor for the same job, constituted a duplication of work and cost, adding, "We had no doubt about LVB who are still doing their work".

 

The report said it would be absurd for anyone to say that the computerisation system in the TMA has been completed, while LVB who are still working, have not released their softwares to the (TMA).

 

It noted that LVB is the only acceptable body, by Constitution and law that should carry out government valuation jobs. "We, therefore, accept their contract sum and proposals", adding that the assembly was not releasing funds to the LVB to enable it to complete the project on schedule.

 

The SFO in July this year, initiated investigations into the mode of award of contracts at the total cost of 1.2 billion cedis by TMA in November last year, which did not pass through the TMA tender board.

 

In all, 10 officers of the TMA including Mr Narh, Alhaji Husseini and Mr Aryee, as well as seven other departmental heads of TMA appeared before the investigators.

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