GRi Press Review 30 - 01 - 2002

The Ghanaian Chronicle

American telecom giant shows interest in Ghana Telecom

The Statesman

Attorney General’s office to hire private prosecutors

NDC gurus exposed!

The Evening News

Private sector asked to be proactive

Daily Graphic

‘Abattoir faces liquidation’

Ghanaians owe Ako Adjei - CPP

The Ghanaian Times

Salvage distressed firms - govt urged

Woman, 29, snatches baby from hospital ward

High Street Journal

Bonds to open way for long-term debt-market

Insurers Accuse Banks of Encroachment

 

 

The Ghanaian Chronicle

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…/

 

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The Statesman

Attorney General’s office to hire private prosecutors

 

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…/

 

NDC gurus exposed!

 

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 Evening News

Private sector asked to be proactive

 

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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Daily Graphic

‘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…/

 

Ghanaians owe Ako Adjei - CPP

 

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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The Ghanaian Times

Salvage distressed firms - govt urged

 

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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High Street Journal

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…/

 

Insurers Accuse Banks of Encroachment

 

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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