Bank of Ghana takes measures to strengthen rural banks
Accra (Greater Accra) 17 Jan. 2000
Efforts are far advanced for the setting up of special tribunals to deal expeditiously with cases relating to tax abuses.
The tribunals will be equipped with specialised taxation personnel to handle tax cases, especially the Value Added Tax (VAT), in a professional manner to remove bottlenecks and long delays associated with the settlement of tax cases by the traditional courts.
A management source at the VAT Service Secretariat told the Ghana News Agency that the management of VAT Service has detected a number of abuses of the VAT Law, which are undermining the achievement of the objectives of the tax system.
It said some tax officials are collaborating with hotels, supermarkets, manufacturers, individuals and other VAT registered organisations to fiddle VAT figures to the detriment of the nation.
"They indulge in forgery of VAT statements and other basic and important documents and information to cheat the state."
The source said the VAT Secretariat has after one year of the operation of the VAT assessed the difficulties and marshalled out strategies including the arrest and prosecution of VAT defaulters, to improve upon the system.
It warned those involved in shady and illegal deals to desist from the habit, as the law would be applied to the letter.
The Official quoted section 63 of Act 546 (VAT Law), which states that "an officer of the Service who in connection with any of his duties takes or seeks, directly or indirectly, any payment or reward, whether pecuniary or otherwise, on account of anything relating to his office or employment, including the failure to carry out his proper duties, commits an offence and is liable on summary conviction to imprisonment for a term not exceeding five years or a fine not exceeding three times the value of any tax involved and shall be dismissed from the Service."
The source said persons who forge, falsify or wilfully use a forged or falsified certificates or evade the tax shall be dealt with seriously.
GRi../
Bank of Ghana takes measures to strengthen rural banks
Abura-Dunkwa (Central Region) 17 Jan. 2000
The Bank of Ghana (BOG) has taken a number of measures to assist rural banks to play the roles expected of them, Mr J.B. Clottey, Chief Manager of the Banking Supervision Department, said at Abura-Dunkwa at the weekend.
He mentioned some of the measures as the tightening of secondary reserve asset requirements to enable rural banks to earn reasonable income to build up their capital base.
Mr Clottey was addressing the annual general meeting of shareholders of Akoti Rural Bank Limited at Abura-Dunkwa.
He said the aim of the BOG is to stimulate and transform the rural subsistence economy and turn the rural banks into sustainable enterprises capable of creating employment, initiating and developing infrastructural facilities in the communities.
The BOG has observed that most financial irregularities of rural banks result from misconduct of the board, management and staff who exploit weak internal control systems in the banks, he said, and called for a good calibre of directors and management
capable of formulating and implementing policies to ensure the success of the banks.
Mr Clottey said fraud and irregularities occur where managers have continuously remained at post without taking their annual leave.
He commended the board and shareholders of the bank for declaring a net profit of 31 million cedis and for mobilising an additional seven million cedis in ordinary shares.
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CIBA to establish bank
Kumasi (Ashanti Region) 17 Jan 2000
The Council of Indigenous Business Association (CIBA) has launched a 30 billion- cedi endowment fund to establish a bank and provide insurance services, Mr Kwasi Ameyaw, CIBA's National Executive Secretary has said.
He said the bank would be established this year with a capital of 200 million cedis.
Mr Ameyaw, who was speaking at the inauguration and swearing-in of the Ashanti Regional branch executive of the association in Kumasi, said the endowment fund was to be set up through a special daily levy of one cedi a member throughout the country.
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