Govt Okays 20bC…to underwrite losses of two liquidated banks
Liquidation of banks…Workers accuse BOG, govt
SSNIT concludes merger worth 2.3mC with Rexol
We are not aligned to NDC – TUC
Kwamena Ahwoi turns down appointment
Cyclists' right of way
Govt Okays 20bC…to underwrite losses of two liquidated banks
The Daily Graphic reports in its top story that the government is to spend about 20 billion cedis to underwrite the losses of the two liquidated banks.
The money will be used to pay in full, deposits of customers, as well as salaries and entitlements of the workers of the Bank for Housing and Construction (BHC) and Ghana Co-operative Bank.
The Graphic says that speaking in an interview in Accra at the weekend, Dr Clemens Anyomi, a spokesman of the shareholders of the two banks, said the action, which is contrary to the law on liquidation, is intended to alleviate the pain of liquidation on the depositors and workers.
He is quoted as saying that under Liquidations Act 1963 (Act 180), the government is not obliged to take care of the liabilities of insolvent companies. He said if the provisions of the law had been applied to the letter, depositors of BHC, for instance, after all calculations, would have been entitled to 68 per cent of their deposits while those of the Co-operative Bank would have been given only 22 per cent of their deposits.
The Graphic reports Dr Anyomi, who is the director of the Financial Sector Adjustment Programme (FINSAP) secretariat of the Ministry of Finance, as saying, "normally the workers would have been entitled to only two weeks salary but the government in its magnanimity, has decided to bend the rule in this particular instance, to help the workers".
According to him, the government has so far, released 90 billion cedis as an up-front funding to expedite action on the depositor transfer and the employee-creditor schemes, which have been put in place to cushion the impact of the liquidation on both depositors and workers.
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Liquidation of banks…Workers accuse BOG, govt
The Public Agenda reports in an inside page story that workers of the liquidated Bank for Housing and Construction (BHC) have accused the Bank of Ghana (BOG) and the government of being partly responsible for the failure of the bank.
They paper quotes the workers as saying that while the BOG neglected its supervisory role, it also failed to pay BHC’s Financial Sector Adjustment Programme Bonds (FINSAP) worth 1.75 billion cedis, which matured on December 31st, 1998 and December 31st, 1999.
The Public Agenda says that at a news conference last Friday, the workers stated that a random sample of 26 contractors whose contracts were pre-financed by the bank amounts to 11.8 billion cedis. According to them, the government’s inability to pay the contractors, have contributed to the bank’s current predicament. "If government had paid such monies, we would be telling a different story about BHC", Mr Ben Amegatcher, who read the statement on behalf of the workers, is quoted as saying.
Mr Amegatcher, who is chairman of the Professional Management Staff Union of BHC, is said to have denied claims by the liquidator of the bank that BHC was not viable.
He said contrary to popular belief that BHC has been making persistent losses from 1990 to 1995, the bank rather made a net profit of 11.5 billion cedis after payment of taxes of 7.5 billion cedis during the period.
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High Street Journal
SSNIT concludes merger worth 2.3mC with Rexol
In a front-page story, the High Street Journal reports that Ghana’s biggest institutional investor, the Social Security and National Insurance Trust (SSNIT), has concluded talks with Rexol International of Gibraltar, to run a chain of hotels to be known as the "Golden Beach Hotels" in Ghana.
Mr Emmanuel Gyamfi, acting head of Investment for SSNIT, is quoted to have said on Wednesday that under the joint venture agreement, a holding company known as Golden Beach Hotels (Ghana), was formed in June, last year, as a result of the exchange of shares of three companies in the hotel industry from SSNIT to Golden Beach Hotels.
According to the High Street Journal, the three companies are La-Palm Royal Beach, Accra, Golden Beach Resort at Elmina in the Central Region and Busua Beach Resort in the Western Region. Mr Gyamfi is reported as saying that before the merger deal, Gibraltar-registered Rexol International Company and its wholly owned Panama Incorporated subsidiary, Glistne Holding, were 100% owners of La-Palm Royal Beach Hotel.
He said SSNIT on the other hand, had a 100% shares in Busua Beach Resort and 55% of the outstanding shares of Golden Beach Resort, with the Bank for Housing and Construction taking up 15%, State Insurance Company (SIC) 30%.
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We are not aligned to NDC – TUC
In a front-page story, the Dispatch says that the Trades Union Congress (TUC) has denied a report from the United States-based Freedom House that it is aligned with the ruling NDC party.
The paper says that the TUC was in a rejoinder, reacting to portions of the Freedom House report, published in the January 10-16, 2000 edition of the Dispatch, headlined: "Rawlings Socialism Failed", which stated in part that "the only labour confederation, the Trades Union Congress, is still aligned with the ruling party, although it has shown signs of autonomy".
The rejoinder is said to have described the Freedom House report as ‘unfortunate’ and referred to Article 15 of the organisation’s current constitution, which states in part that "no national office holder of the TUC and the affiliated national unions, heads of the specialised departments of the TUC, regional secretaries of the TUC, women organisers and industrial relations officers of the affiliated unions shall hold office in a political party or address any rally organised by a political party".
The rejoinder is said to have stated that the "TUC has sought and will continue to intervene on matters of public policy and legislation to the extent that they affect the interests of our membership".
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Kwamena Ahwoi turns down appointment
The Ghanaian Voice reports in its lead story that Mr Kwamena Ahwoi, former Minister of Local Government and Rural Development, who was recently appointed as Minister for Regional Integration and Development, turned down an appointment as Presidential Adviser on Governmental Affairs.
According to the Voice, the appointment was offered to him about four months ago, but he pleaded that the post should be passed on which happened. Alhaji Mahama Iddrisu eventually took the post. The paper says that its sources confided that Mr Ahwoi who is "one of the best political strategists of our times, accepted his new position as a challenge to make the impossible possible".
The Voice surmises that Mr Ahwoi’s track record at both the vetting, investigations and Revenue Commission, in addition to his output at the Ministry of Local Government and Rural Development, are what influenced the President to move him to his new portfolio.
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Cyclists' right of way
The Accra Mail says in a front-page story that motorists in the city of Accra will heave a sigh of relief with the construction of 21.5 kilometres of non-motorised paths for pedestrians, cyclists and related categories such as wheelchairs and pull-carts.
The paper says that some of these are along the Ring Road from La Junction to Kwame Nkrumah Circle. The paths, according to the Department of Urban Roads (DU), are in line with the government’s policy of improving traffic flow and road safety, as well as to reduce traffic congestion.
The goal of the project is said to promote the use of bicycles for short and medium-range urban trips in combination with public transport for long-range urban and inter-urban trip.
The objectives are to ensure improved mobility for all residents of the metropolis, improve accessibility to the central business district, industrial zones and to help reduce automotive air and noise pollution in the city.
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