Banks'liquidation fuels rumours

805 exhibitors register for Trade Fair

EU micro projects launched in Upper West

Tema labour council reject increase in VAT

Accra (Greater Accra), 17 February 2000

The liquidation of the Bank for Housing and Construction and Co-operative Bank last month has given rise to wild speculation by the public due to the suddenness and secrecy of the action.

It has also eroded public confidence in the banking sector, slowed down the growth of the private sector and led to a negative impact on the government's fiscal standing due to the money spent on mitigating the consequencies on those affected by the action.

These were the views of speakers at a round-table discussion on the liquidated banks organised by the Institute of Economic Affairs (IEA) on Wednesday in Accra.

Mr. B. J. da Rocha, a lawyer, who spoke on "Legal implications" and Mr. Samuel K. Apea, a former deputy Governor of the Bank of Ghana, who gave the "Economic implications", set the tone for the discussions.

Mr. da Rocha said the secrecy shrouding the exercise raises questions that certain requirements in the liquidation process were ignored and called on the Bank of Ghana (BOG), Ministry of Finance and the affected banks to provide the answers.

"The haste with which the liquidation was carried out does raise the suspicion that strict compliance with the law was avoided for the sake of expediency, the nature of which is not known to the public.

"Assurance from the right quarters are required to allay public unease and dispel the suspicion and perception that there has been something irregular about the liquidation of the two banks."

Mr. da Rocha said he is of the view that the haste with which the exercise was undertaken could have been avoided if it had been done a year or two ago instead of the government "pumping money into a black hole" in reference to money spent to prop them up.

Mr. Emmanuel Asiedu-Mante, Head of Banking Supervision, BOG, differed saying several meetings were held with the Registrar-General and it was obvious that the necessary legal liquidation procedures were followed.

He said the action took this long because, even though, the decision to liquidate them had been taken about two years ago, the government felt it could turn things round.

As to why the two banks were not transferred into private hands rather than liquidate them, he said their liabilities were so huge that they discouraged potential investors.

Mr. Apea said contrary to banking regulations, the Bank of Ghana had mounted several rescue operations for the banks to no avail with the last one happening two years ago in the wake of the A-Life scandal.

He said one direct implication of the closure of the banks is "the income loss as far as such specific victims as creditors, employees, depositors and ordinary shareholders are concerned.

"The liquidation will be an erosion of public confidence in state-owned banks in particular. The likelihood that many customers and depositors of the liquidated banks will take their businesses from the state-controlled banks is high."

Mr. Apea said the erosion of confidence in the banking system might result in the reversal of the currently healthy and positive trend in the growth of the public's savings in the banks.

To forestall the recurrence of a similar fate there is the need to, among other things, ensure better management of the banking system, manage licence revocations and liquidation better and consider a deposit insurance scheme.

GRi

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Accra (Greater Accra), 17 February 2000

About 805 exhibitors have confirmed their participation in the Ghana International Trade Fair 2000, which commences on February 25.

They comprise 520 Ghanaian and 285 foreign companies from 41 countries.

The Ghana Trade Fair Company (GTFC) projects to attract 600 local and 300 foreign participation, and earn about 80 million dollars.

Mr. Lawson Gidigasu, Director of the GTFC said this at a cocktail for media practitioners at the Trade Fair Centre in Accra on Wednesday.

Members of the board of directors of the GTFC and journalists from both state-owned and private media organisations discussed preparations so far made towards a successful fair.

Mr. Gidigasu expressed optimism that the projections of exhibitors and participation would be exceeded because more foreign countries and companies are confirming their participation.

The foreign exhibitors are from the United States of America, Germany, Pakistan, Yemen, Syria and Italy.

France, Malaysia, Cote d' Ivoire, Togo, Nigeria and Benin are also participating.

Mr Gidigasu said all the indoor spaces have been booked and the outdoor spaces are being taken up at at a rapid rate. The construction of stands is about 80 per cent complete.

Mr Kwame Ofori Amanfu, acting Chief Executive of the GTFC said adequate preparation and groundwork had been done to forestall power and water supply interruptions, security and safety of exhibitors and their goods.

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Wa (Upper West), 17 February 2000

Mr. David Osei-Wusu, Upper West regional minister has appealed to district assemblies to embark on development projects that would empower the people to become self reliant.

He said this would whip up the people's enthusiasm to contribute meaningfully in decision-making, and in the provision of the needs of the communities.

Mr. Osei-Wusu made the appeal on Wednesday at the launch of the fifth phase of the European Union micro-projects programme in the region.

This phase will cover education, health, water and sanitation, and market sectors.

The regional minister said most of the projects would be human-centred in accordance with the government's poverty alleviation programme.

Communities and individuals who will contravene the regulation of the project will either be blacklisted or penalised, he warned.

Rev. Otoo Pimpong, deputy Project Manager, said the EU would spend about 98 billion cedis on micro-projects in 56 districts throughout the country.

Beneficiary communities, however, must make judicious use of the facilities so that others could also benefit in the next phase, he said.

The deputy project manager tasked assembly members and community leaders to monitor their projects to avoid misappropriation and misapplication of funds.

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Tema (Greater Accra), 17 February 2000

The Tema District Council of Labour (TDCL) on Wednesday rejected the proposed two and a half per cent increase in VAT saying it will further worsen the plight of workers, who are struggling to make ends meet.

It, therefore, called on Parliament to look at the proposal critically during discussions on the 2000 budget proposals taking into consideration the low remuneration of Ghanaian workers and maintain the rate at the current 10 per cent to avoid further hardships.

Mr. Wilson Agana, Chairman of the TDCL said while waiting for the Trades Union Congress (TUC) to come out with its view on the issue, Tema workers would like their voices heard on such matters, which have direct effects on their standard of living.

Mr. Agana said that at the time the 10 per cent VAT was introduced, the TUC suggested that it should be five per cent but this was ignored.

He said the labour movement will fight against the increment which the government says will go into an educational trust to help fund the increasing cost of education in the country.

In another development, the TUC is to conduct a census of its members throughout the country to collate data to serve as a basis for policies and proper planning.

Miss Francisca Borkor Bortey, Tema Regional Secretary of the TUC, who announced this, said the exercise would cover not only members who pay dues to the TUC but will also include those classified as "permanent casuals" by their employers.

Miss Bortey told the meeting that the census will take place next month but at a date yet to be fixed. It is different from the National Population and Housing Census to be held on March 26 to April 10.

TUC has currently trained census officers at the district level, who will also train enumerators at the various local unions to gather information such as names, age, sex, educational qualification and job classification.

The census officers will register companies, whose members belong to the TUC and present questionnaires to the local union chairmen and secretaries, who will serve as enumerators to compile such information.

Miss Bortey cited that due to wrong statistics the TUC obtained only five billion cedis out of the projected 25 billion cedis for the Labour Enterprises Trust (LET).

The statistics to be gathered would assist in negotiation of wages, planning of a welfare scheme and determine TUC's international affiliation payments based on numerical strength.

GRi

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