‘Abattoir faces liquidation’
Woman,
29, snatches baby from hospital ward
Bonds
to open way for long-term debt-market
American
telecom giant shows interest in Ghana Telecom
Barely a month after the Government of Ghana declared its intention to abrogate the Malaysian Telecom, European and American telecommunication giants have begun expressing interest in taking over the industry, Chronicle has learnt.
Prominent
among them is the American AT&T, a company reputed for mass telephonic
networking, Chronicle gathered.
In
order to facilitate its bid ahead of other interested competitors, a very
senior manager of American AT&T is expected to arrive in the country very
soon to hold discussions with the Senior Minister and Chairman of the
Government Economic Management Team, Hon. J.H. Mensah, over AT&T’s
investment interest in Ghana Telecom. This was made known to the paper in an
exclusive interview with Hon. J.H. Mensah at Elmina recently.
“I
have a friend who worked with the American AT&T for many years, he is a
very senior manager, on a visit I talked to him about inviting foreign partners
into telecom here, he came here himself and decided that the Ghana market
AT&T was not willing… from then on he talked to me, we have communicated
and he is coming back to see me very soon because they have seen new potential
in the market, so you know the companies are all making their calculations”,
Hon. Mensah said.
The
AT&T’s interest to take over Ghana Telecom has come at the time the
government has declared its intention to abrogate the Malaysian Telecom
agreement due to non-performance and see AT&T as a likely candidate to push
Ghana Telecom to the digital age owing to their experience in that field.
They
should have made it possible to use mobile telephone cheap and accessible to
the mass market (the Minister referring to Telecom Malaysian). So now we have
to talk to different people who are in the mass wireless telephone business
like those who are in the fixed line business, and AT&T is in that option
also”, Hon. J.H. Mensah said.
This
move by the government forms part of strategic decision to jump and get to the
digital age, to make mobile telephones accessible on the mass market. The
targets that were said to have been set under the agreement with Telecom
Malaysian called for increasing the telephone market to about 200,000
landlines. But today 200,000 landlines, according to Hon. J. H. Mensah, is like
one exchange in a small place in London.
As
part of this strategic decision, Hon. Mensah said one option open to government
is to concentrate on building one good telephone exchange in the country then
trying to set up competitive ones that will not function well giving an example
of that of WESTEL and Ghana Telecom where WESTEL haven’t taken off well and
Ghana Telecom, which is supposed to have taken off is not performing very well,
Hon. Mensah lamented.
But
the minister was quick to add, “Even if we gave you the monopoly, we have set
up a regulatory mechanism that the use of that monopoly does not exploit their
operations.
When
pressed by Chronicle to have the Hon. Senior Minister confirm the likely
candidature of AT&T, the Minister said “We have no selected firm but by
defining this job, there are lots of companies who have expressed interest in
the Ghanaian market because they have
seen that Ghanaian market has potential for a mass telephonic market. So they
are coming; people from AT&T and these European who could not look at Ghana
before are coming”. That was the Hon. J.H. Mensah.
That
means if AT&T gets the nod she will have monopolistic control of the telecommunication
system in the country.
GRi…/
Members
of the public who are frantically yearning for speedy trials of
economic-saboteurs and corrupt public officials will soon heave a big sigh of
relief.
The good news is that strenuous efforts are
being made by the Attorney General’s Department to engage private prosecutors
to expedite prosecution of criminals. The private prosecutors will assist the
Attorney General’s Department, which is currently understaffed, to ensure
speedy prosecution of criminal cases and those pending in courts.
The new bold move, The Statesman learnt, is
designed to revolutionise the system of prosecution in Ghana. This is in line
with the new system of fast tracking of the judicial process.
Currently readying itself for gazetting is the
Amendment of the Criminal Procedure, which according to the Statesman’s source
is due to be completed in February 1. It would then be presented to Parliament
the following week. The essence of this amendment, the paper learnt, is to
enable the Attorney General, as a temporary measure, to appoint prosecutors in
private practice to assist his office.
The Attorney General’ Department is currently
overstretched with only about 90 out of the needed 200 lawyers at post. More
disturbing aspect of the whole thing is that there are only two senior and
experienced prosecutors in the AG’s office. These men handle cases, which end
up in the higher courts. They are Safo Sampong, Director of Public Prosecution
(DPP) and Anthony Gyambiby.
The shortage of prosecutors has apparently
slowed down the prosecution of people involved in economic crimes in the
country. Bringing in more experienced senior lawyers from private practice
will, therefore, boost the system and beef up the capacity of the AG’s
department to enable the numerous criminal, civil and other cases before the
courts to be settled with dispatch.
The Attorney-General, Nana Akufo-Addo, who was
in Kumasi on Monday, expressed concern about the slow-pace of the dispensation
of justice in the country. He said such actions lead to the breakdown of the
rule of law. To this end, he said, 110 seasoned lawyers will be recruited
within the year to assist in the dispensation of justice, subject, of course,
to budgetary approval.
The Attorney-General said the government will
leave no stone unturned to ensure that the rule of law is entrenched and that
nothing will be left to chance to realize this noble objective.
More…/
The controversy surrounding the invitation of
guests to the People’s Assembly, organized to mark the 9th
anniversary of the NPP government, has been laid to rest with a statement
dismissing NDC’s claim that its functionaries were not invited to the
gathering.
The NDC General Secretary, Alhaji Huudu Yahaya,
searching for an excuse to explain the NDC’s failure to attend the function,
rather shamelessly said the party was not invited because the invitation cards
sent to them bore no names. However, another reason the NDC assigned for its
failure to attend the function was that the function was organized for NPP
members, even though attendance at the function later rendered such assertion
wrong.
This was because representatives of other
parties were present, including members of the civil society. Indeed, the TUC
Secretary General, Kwesi Adu-Amankwah and Deputy General Secretary of the
National Reform Party (NRP) and parliamentary candidate for Shama, Ms Emelia
Arthur attended and even posted questions during “question time”.
A statement issued on Tuesday by the Ministry
of Information and Presidential Affairs, described as “unfortunate and
misleading recent statements by some leading members of the NDC that the party,
particularly, its Members of Parliament, were not invited to the Gospel Rock
Show and Peoples Assembly to mark the 9th anniversary of the 4th
Republic and one year of the NPP government.
The Ministry reiterated that all political
parties and MPs, without exception, were indeed, invited to the two events. The
Ministry added that each of the political parties was issued with five blank
invitation cards for the two events on Thursday January 3. However, in the case
of the NDC, three additional cards were sent to Prof J.E.A. Mills, presidential
candidate; Issifu Ali, National Chairman and Alhaji Huudu Yahaya, General
Secretary, all NDC top gurus.
W.O. Bonney, “a security man at the NDC Headquarters,
received all the cards, according to the statement. In addition to that,
another 155 cards were sent to the 155 MPs who are not ministers. These cards
were sent to Parliament House.
“Specific invitations were also sent to the
leadership of Parliament, namely; the Speaker, Freddie Blay, Second Deputy
Speaker, Kenneth Dzirasah, Majority Leader, Papa Owusu Ankomah, Minority
Leader, Alban Bagbin and the clerk of Parliament, K.G.K. Tachie,” the statement
said.
“It is instructive to note that while the political
parties and MPs invited to these functions acknowledged receipt of their
invitations and honoured them, only the NDC leadership, both in and outside
Parliament, failed to attend a function of which they had been specifically
invited,” it added.
The Ministry’s statement noted, however, that
even though some teething problems were observed which was not meant to
marginalize any one particular political party; efforts would be made to
improve upon future distribution of invitation cards.
The statement pointed out that the NDC MPs for
Yilo-Krobo, Daniel Terkpertey, and Asuogyaman, Dwamena Bekoe, indeed actively
participated in the fora organized at Somanya and Akosombo, respectively.
“The Ministry wishes to assure Ghanaians that
events marking the recent anniversary, especially the Peoples Assemblies, were
non-partisan and non-sectional. It was primarily aimed at promoting
transparency, accountability and good governance with the view to deepening the
concept of participatory democracy in the country,” the statement emphasized.
GRi…/
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The Executive Director of Databank, Mr Ken
Ofori-Atta, has stated that for the Presidency to be meaningful and successful,
the private sector must thrive.
He, however sounded a cautious note; “we are
comforted and cynical, but rather inspired that a new era has really dawned.
But let us protect this momentum with a number of structural issues that I
believe would ensure that we truly anchor the private sector as the engine of
growth.”
Mr Ofori-Atta said these when he contributed
his thoughts at a workshop programme to fashion out strategy to push the
public-private partnership agenda forward, which ended last week at Elmina in
the Central Region.
He said for the agenda of Golden Age of
Business to be boosted, it is paramount that the private sector takes a proactive
stance to its own development. It should also take advantage of the
opportunities that exist so as to move up the value of productivity and
competitiveness.
The Databank CEO further observed that no
developed economy can operate without a thriving stock exchange. Mr Ofori-Atta
explained that stock markets are the most effective vehicles to raise long term
capital and a “booming stock market will attract international portfolio
investors to fill our savings gap for investment.”
He said in what Dr Sam Jonah described as
“Talibanic regime”, over 200 companies were privatized but only six went
through the stock exchange. “We hope that the Minister of Finance will broaden
his criteria and not only insist on generating revenue from DIC (Divestiture
Implementing Company) but also that they privatize through the stock exchange,”
he suggested.
On the Foreign Exchange Control Act, which was
redrafted and “got lost” eight years ago, he said, it should be revived and
implemented since the current Act does not promote capital growth. “Within 10
years, Ecobank’s assets have almost reached 1 billion dollars, being able to
mobilize capital in West Africa and international markets.”
Mr Ofori-Atta said due to the Foreign Exchange
Control Act, Ghanaian banks have not been able to open offices in other
countries because even their combined capital is under 400 million dollars. “It
seems ludicrous that we as a nation have conspired to prevent our banks from
growing and accessing long term capital for our industries to grow.
He suggested that in the effort to source long
term capital to support the private sector, government should examine
strategies such as offering tax credits to encourage the banks to promote
venture funds. “Let us intervene with a capital restructuring policy so our
industries can become competitive again,” he emphasized.
GRi…/
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‘Abattoir faces liquidation’
The ¢14.5 billion Accra Abattoir runs the high
risk of being liquidated unless the shareholders provide an immediate lifeline
of at least ¢2.5 billion.
This amount is needed to pay creditors and
redeem bank overdraft; with the remainder serving as a working capital to keep
the 240 cattle capacity per shift per day modern slaughter house operating. The
slaughter house can also handle 240 sheep/goats and 120 hogs or pigs per shift
per day.
Currently, the abattoir, which faces
intermittent utility service cuts, creating serious environmental problem in
and outside the precincts of the compound, operates below 20 per cent capacity.
The stench from the abattoir as a result of intermittent water cuts has made it
lose its reputation as a place where animals are slaughtered under hygienic
surroundings, at least for the moment.
Mr Emmanuel Simpson, Managing Director of the
company, in an interview in Accra, stated that attempts to get the shareholders
to rescue the project from its financial malaise have so far proved futile and
unless something immediate is done, management of the company will have no
other option but to close down.
The Accra Abattoir is a limited liability
company with government having the highest shares of 51.36 per cent and SSNIT
36.36 per cent. Other shareholders are Accra Metropolitan Assembly, 7.19 per
cent; MASAI 4.84 per cent, and the Butchers Association of Ghana 0.02 per cent.
Mr Simpson said in December 2001 a committee of
the board of directors proposed that to save the company from collapse, the
various shareholders must provide additional equity based on proportionate
shareholding positions to raise ¢800 million. He said based on the
shareholding, government was to pay ¢431.82 million, SSNIT ¢307.73 million
while AMA pays ¢60.45 million.
He said MASAI had declared that it would no
longer make any contributions to the company while the position of the butchers
association was not certain. The three major shareholders were thus required to
raise the money.
Mr Simpson said while SSNIT insisted that they
will pay up only when the others have, the government asked that the company
goes for a loan and insisted that the AMA must ensure that butchers patronize
the facility. The AMA is the only major shareholder which made good its share
of ¢60.45 million.
Mr Simpson said the abattoir is a project with
a future, despite the present mess in which if finds itself. He said if the
company could recapitalise, management intends to engage in the production of
meat in addition to the service slaughter it now undertakes, site sales points
at vantage points to service customer needs, seek strategic investors, and
process animal waste that is generated at the company into feed.
Mr Simpson expressed regret that despite the
fact that AMA is a shareholder, it permits butchers to slaughter their animals
at unauthorized places in and around the city against the authority’s by-laws.
He said in spite of the attempt by the former Deputy Minister of Presidential
Affairs, Mr Edward Osei-Kwaku, to arrange to have butchers patronize the
facility as far back as October 2001, no positive response has been achieved.
More…/
The United Kingdom and Ireland branch of the
Convention People’s Party (CPP) has said the nation owes the late Dr Ako Adjei
tons of gratitude for his immense contribution towards her development. “In
mourning Dr Ako Adjei, Ghanaians and the CPP are eternally grateful for his
immeasurable contribution to statehood and nation building”, it said.
This was contained in a statement signed by the
Secretary of the branch, Nii Armah Akomfrah, in reaction to the death of Dr
Adjei, which it said members received with profound shock and dismay. The
statement said the foot-soldiers of the CPP hold high the party banner in
honour of Dr Adjei, whom it described as a prominent figure who actively
participated in the nation’s struggle for independence.
“As a lawyer in the pre-independence years, he
was already serving the people of Ghana. More importantly, however, was his
membership of the UGCC and the push for independence,” it said.
According to the statement, Dr Adjei was
instrumental in inviting Dr Kwame Nkrumah to become the General Secretary of
the UGCC and served Ghana in several capacities as a minister of state. “He
contributed enormously in the transition of a country from subjugation to
independence and fittingly lived to witness the birth of the Fourth Republic,”
it said. The statement expressed the branch’s sympathies and condolences to the
bereaved family.
GRi…/
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Private
sector operators have recommended to government to support distressed companies
and restructure the debt of those which could be reasonably re-established as a
result of the unfriendly macro economic environment.
They
expect the Ministry of Private Sector Development to lead the crusade in this
regard. They urged the ministry to select some companies in specific key
sectors of the economy for support and develop them into champions who could
compete well internationally.
These
forms part of the several recommendations made to government at the end of the
national workshop on adopting strategies to develop the private sector. They
urged the Minister of Private Sector Development to push for the support for
and development of the Ghana Stock Exchange and encourage investment in the
capital market to make long term funds available to the private sector.
“Specific
issues to be addressed regarding GSE are computerization, capacity building and
getting more divestiture through the GSE”, they said. The participants advised
the Ministry to be proactive in the total overhaul and restructuring of the
pension fund industry.
On
the legal framework, they noted that the country’s labour laws need to be
reviewed, updated, and modernised to conform to international standards. In
this regard, they urged the Ministry for Private Sector Development to be in
constant touch with the Attorney General’s Department to be updated on laws
being reviewed which effect the private sector.
They
mentioned the Land Title Security, the mining law, the Companies Code, the
Bankruptcy law, the Exchange Control Act, The Banking Law, the Insurance law,
the financial institutions law, the Bills of Exchange Law, and the Immigration
laws which need to be looked into.
The
participants suggested that in addition to the normal public hearings adopted
by the Parliamentary Committee on drafting, bills that impact on the private
sector could be given to trade and business associations for study, comments
and amendments.
They
further suggested that information shop must be created at the district level
where small and micro enterprises could source information.
They
recommended the review of the minimum capital requirements of non-banking
financial institutions by the Bank of Ghana adding that the upward review from
500 million cedis to 10 billion cedis was excessive.
More…/
Woman,
29, snatches baby from hospital ward
Yaa Ohenewaa, 29, unemployed, was arrested and placed in custody on Tuesday for allegedly stealing a two-day-old girl from a ward of the Komfo Anokye Teaching Hospital (KATH). The baby was handed back to its mother, Madam Nimatu Yakubu.
According to police sources, madam Yakubu delivered the baby at Ward A2 at the hospital last Saturday. The suspect introduced herself to Madam Yakubu while in the ward claiming that she was visiting a nursing mother on admission. The suspect established a friendly relationship with Madam Yakubu who later asked her (suspect) to take care of the baby while she (Yakubu) went for a bath.
Madam
Yakubu returned from the bathroom only to realise that both the suspect and her
baby had disappeared.
A
report was made to the KATH security personnel upon which the suspect was
traced to an uncompleted building near the offices of the Kumasi Metropolitan
Assembly (KMA) at Adum in Kumasi and arrested with the baby in her custody. The
suspect was handed over to the Kumasi Central Police.
During
preliminary interrogation, she claimed that the baby was hers but an
examination at KATH proved otherwise. She later alleged that Madam Yakubu handed
over the baby to her because she (Yakubu) indicated that she could not pay the
hospital bills.
GRi…/
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Bonds
to open way for long-term debt-market
The Government of Ghana Index-Linked Bonds (GGILB), recently introduced, will help to a large extent in the establishment of a long-term debt-market in the country. This will be done through the creation of enabling conditions for future corporate and other government bond issues.
Speaking
at the launch of the GGILB at the Ghana Stock Exchange in Accra, Mrs Grace
Coleman, Deputy Minister of Finance, announced that the bonds were also meant
to help the country save about ¢190 billion in domestic debt interest payments
by the end of the year 2002.
The
bonds, which are three-year inflation-indexed, are accompanied by real coupon
rates ranging from five to six per cent.
The
principal and interest payments will be adjusted in line with changes in the
consumer price index (CPI), which will take account of inflation after the
GGILBs are issued.
The
Deputy Minister explained that individuals would be allowed to buy shares in
government companies traded on the Stock Exchange with their acquired
government bonds.
Mr
Aseidu Mantey, Deputy Governor of the Bank of Ghana, who also spoke at the
function, assured investors that they would not lose their investments with the
introduction of the GGILBs. He noted that inflation had been an impediment to
short term investment and hoped the introduction of the bonds would help the
situation.
More…/
The
nation’s insurance industry is very uneasy because of banks encroaching on its
business. High Street Journal learnt that many banks are now offering customers
free Personal Accident Insurance Schemes or life policies. The banks involved
include Barclays Bank, EcoBank and Standard Chartered Bank. Even the
development banks are not left out.
This
new interest insurance business may be a fallout of the Structural Adjustment
Programme which induced a competitive nature into the nations banking scene.
But insurers see this “innovation” by banks as stepping into their business
zone. “In recent times, some commercial banks have entered into the insurance
domain says Kwame Acheampong-Kyei, Managing Director of Gemini Life Insurance
Company, a life insurance specialist firm in the country.
According
to him, they have come up with products, which offer insurance services and
benefits to the public and are aggressively advertising these products without
acknowledging their possible counterpart insurers. “What I am suggesting here
is that there is the need for a clear directive on this unhealthy development
which has the tendency of creating confusion in the minds of the public as to
where to go for what service”, Acheampong-Kyei emphasised.
He
suggested that what should be done, however, is to develop strategic alliances
between insurers and the banks which elsewhere is known as “assurbanking”. He
explained that by strategic alliance, a mutually beneficial agreement is drawn
between banks and the insurers whereby the banks sell products developed by the
insurance companies and vice versa.
Diop
Frimpong, Deputy Managing Director, Star Assurances sees nothing wrong but
contends that banks, when advertising, should acknowledge the insurers.
The
High Street Journal foresees that with the bank’s newfound policy, insurers
will be facing large scale withdrawals by individuals who associate banks with
property.
GRi…/
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