Government legally acquired Vacuum Salt - Asamoah

Lawyers' refusal to accept postings hampering tribunal set-up - Asamoah

Private security agencies complement Police Service - Okaija

Govt proposes two bills

Accra (Greater Accra) 10 Feb. 2000

Dr Obed Asamoah, Attorney-General and Minister of Justice, on Wednesday, told Parliament that the leasehold interest of Vacuum Salt Product Limited at Ada in the Greater Accra Region, was legally acquired by the government.

He said the acquisition, which was effected under the Ada-Songor Vesting Law, 1992 (PNDCL 287), was to enable the government to undertake a comprehensive national project to consolidate and expand salt production in Songor Lagoon at Ada.

Dr Asamoah, who was answering parliamentary questions, said the Land Valuation Board, which compiled a valuation report on the assets and estimated it at 4.6 billion cedis, has indicated that it is not aware of any compensation paid to Vacuum Salt.

The Minister had been asked about the legal basis for the state take-over of Vacuum Salt and the compensation paid to the company.

He said that it was the responsibility of the Ministry of Lands and Forestry to pay such compensation, but added that "ordinarily, it is the company's attorney who should pursue the issue but if they need us, we will do that for a fee".

Giving a background to the take-over, Dr Asamoah told the House that between 1971 and 1972, the chiefs and people of Ada granted two leases to Vacuum Salt Product Limited and Star Chemical Industries Limited.

He said following a litigation between the Adas and Vacuum Salt about the exact area leased to the company, and violent disputes between workers of the two companies, "the government compulsorily acquired the entire Songor Lagoon under the State Lands Act, 1962 (Act 125) as amended by NLCD 234, in 1974".

Dr Asamoah said the government, thereafter, executed two leases in respect of separate areas of the Lagoon to the two companies for their salt project.

Each lease was for 50 years from 1974, with an option of renewal at the instance of the company, for a further 25 year-term.

In January 1988, the Minister said, the government revalidated the leases for 30 years with terms consistent with the Minerals and Mining Law, 1986 (PNDCL 153).

He said the government re-acquired the leasehold interest of the two companies to undertake a comprehensive national project aimed at consolidating and expanding salt production in the Songor Lagoon.

Dr Asamoah said following the government's cancellation of the lease of Vacuum Salt in April 1992, a request for arbitration was filed in the name of the company at the International Centre for Settlement of Investments Disputes (ICSID) in May, of the same year.

The company, he said, claimed that the cancellation amounted to expropriation and sought reliefs including damages to Vacuum Salt for the government's breach of contract; lost profits, including loss of investment opportunities in the Songor Lagoon; interest and cost of expenses, as well as attorney's fees.

The Minister said after hearing arguments for and against the objection raised by the government, the ICSID ruled that it lacked jurisdiction, and accordingly dismissed the claim of Vacuum Salt.

When asked whether the government would return the leasehold to Vacuum Salt since the company wants to operate again, Dr Asamoah said he would direct the concern to the Ministry of Mines and Energy.

GRi../

Return to top

Dr Obed Asamoah, Attorney-General and Minister of Justice, said on Wednesday a major problem militating against the tribunal system is the refusal of lawyers to accept postings to the rural areas as chairpersons of community tribunals.

He said the provision of basic infrastructure such as accommodation, cannot by itself, help in the establishment of the tribunal system.

Dr Asamoah, who was in Parliament to answer questions pertinent to the Ministry, said inadequate accommodation and the reluctance of lawyers to accept postings to the rural communities are, therefore, the reasons that the full complement of the community and circuit tribunals has not yet been established.

He said so far, 13 circuit tribunals have been established with four in Accra, two in Kumasi and one each at Koforidua, Ho, Sekondi, Tema, Techiman, Tamale and Bawku.

Dr Asamoah, who was explaining why the Judicial Service has not yet established the full complement of the tribunals as required by law, said the Service as a subvented organisation, "relies on its meagre funds to enable it to set up tribunals in accordance with the Constitution.

"However, with the limited resources available, it is becoming increasingly difficult to fulfil this legal requirement".

Dr Asamoah told Parliament that to enable the Judicial Service to fulfil this constitutional obligation, it reached an informal arrangement with the Ministry of Local Government and Rural Development for the District Assembly's Common Fund to be used to provide both courtrooms and residential accommodation for the setting up of community tribunals.

He said in 1997, the Ministry of Local Government and Rural Development gave the appropriate directives and consequently, the Judicial Service provided a standard plan to all the district, municipal and metropolitan assemblies, but unfortunately, "this arrangement has not worked".

"It needs to be observed, however, that the provision of basic infrastructure such as accommodation, cannot by itself, help in the establishment of the rural tribunal system.

"It has to be noted that another major problem militating against the tribunal set-up is the refusal of lawyers to accept postings to the rural areas as community tribunal chairpersons".

Dr Asamoah said with regard to appointment of tribunal chairmen, which is also a militating factor to the setting up of these courts, a law has been enacted for the recruitment of lay chairmen.

He said, however, that this has not helped much due to the restrictive nature of the law because only few officers are qualified.

The Minister said tribunals would be established in a number of towns throughout the country in compliance with the law, as soon as residential and office accommodation, are available.

He said the centralised system which has contributed to the delay in the payment of allowances of tribunal panel members, has been abolished.

He said from the second quarter of last year, arrangements were completed for monthly grants to be given to regional accountants to enable them to effect prompt payment of panel members' allowances.

Dr Asamoah told the House that the Serious Fraud Office (SFO) has defaulted in submitting annual report from 1994 to 1996, to Parliament as required by law because of inadequate personnel and limited logistics.

There were also procedures with which the SFO has to comply in the performance of its functions. Besides, there were delays in the initial stages of its establishment, resulted in "some delays in the production of its annual report.

"The Serious Fraud Office has, nevertheless, produced the reports for both 1997 and 1998 and these have been submitted to the House albeit after the deadline, which is regretted.

"It is hoped that with some improvement in the staffing position, the performance of the Office will be enhanced to enable it to meet its deadline for the submission of annual reports".

Asked how soon the SFO would submit the 1994 to 1996 reports, the Minister said as soon as possible, adding that "the reports are with the Attorney General's Office and that he would check and let the house know when".

Return to top

Accra (Greater Accra) 10 Feb 2000

Nii Okaija Adamafio, Minister of the Interior, on Wednesday told Parliament that it is the policy of the government to encourage the establishment of private security companies to complement the Ghana Police Service in law enforcement.

He said so far, there are 69 security companies in Ghana and that before any security organisation is licensed to operate, "it is properly screened and its activities are monitored to ensure that it does not become a menace to the society or threaten the peace and stability of the country".

Nii Okaija was responding to a parliamentary question on the Ministry's policy on the registration of private security companies.

On concerns that such security personnel could be turned into paramilitary, he said personnel of the private security agencies are not armed, though they wear uniforms.

Asked why the authorities would not recruit more police personnel instead of licensing private security organisations, the Minister said the government's policy on such companies followed popular demand.

Besides, he said, "the country's economy has expanded while population has grown, so what we used to do in the past should give way to the realities of the times" since those private security agencies complement the work of the police.

Nii Okaija told the House that the Bimbilla Police Station is undergoing rehabilitation and as soon as the remaining plumbing and sewerage works are completed, the station would be re-opened.

The Bimbilla Police Station was burnt down during the 1994 ethnic conflict in the North.

The Minister said the neighbouring Wulensi Police Station will however, be considered under the current 1999 to 2001 medium-term expenditure framework.

Asked whether he does not consider a police station at Wulensi as a necessary tool to prevent conflict since the town was hard hit during the Northern strife, Nii Okaija said it was the wish of the Ministry to open such facilities in every town but it is a question of the money.

On plans by the Ministry to check over-speeding by drivers plying the roads in Bechem township, Nii Okaija said the Brong Ahafo Regional Police would be directed to intensify checks on the main Kumasi-Sunyani road and the Bechem township to ensure the safety of both motorists and pedestrians.

He said additionally, the attention of the Ministry of Roads and Transport would be drawn to the problem with a request to provide speed ramps on the Bechem roads.

GRi../

Return to top

Accra (Greater Accra) 10 Feb. 2000

The Bills and Cheques Bill and the Payment System Bill to replace the current Bills of Exchange Act will be laid before Parliament this year.

Other major changes expected this year include the establishment of a Real Time Gross Settlement System (RTGS) for high value inter-bank payments and the introduction of a printer accreditation scheme for printers of cheques and other security measures.

Mr Kwame Peprah, Minister of Finance, who was introducing the government's financial policy for 2000, told Parliament that the measure is part of the government's financial sector policy.

He said all banks, including those established since the freeze on the licensing of new banks was lifted, would be expected to meet internationally accepted accounting, auditing and financial standards, including those relating to capital adequacy and risk exposure as stipulated in the banking law.

Consequently, he said, the licenses of banks that do not meet the prescribed prudential requirements will be withdrawn.

Work is progressing towards the introduction of guidelines and prudential requirements to give effect to Non-Bank Financial Institutions (NBFIs) Act to ensure that all the affected institutions comply with the provisions of that law.

The Government will also introduce a bill this year that will allow the operation of pension schemes supplemental to the one being run by the Social Security and National Insurance Trust (SSNIT).

Mr Peprah said such schemes would benefit from tax breaks and the mobilized funds would be a source for term lending which is vital for the development of mortgage finance in particular, and industry in general.

GRi../

Return to top