Twenty real estate companies showcase their products in London
Lonmin may raise Ashanti investment
Government asked to speed up investment in
private sector
Accra (Greater Accra) 12 June 2002 -Government has been asked to step up investment in the social sector to speed up the country's development.
Dr Anthony Tsekpor, a Research Fellow of Institute of Statistical Social and Economic Research (ISSER), who made the call said a big chunk of government spending in the social sectors were used to service personnel emoluments at the expense of investment, unlike donor inflows, which were mostly directed to infrastructure development and the provision of economic services, Government spends about 41 per cent of the national budget on the social services sectors.
He cited the education and health sectors, which spend about 87 per cent of their annual budget on personnel emolument alone, leaving 13 per cent to be expended on administration, general services and investment. "The current high level of the social budget being spent on salaries compared to the provision of service and investment does not augur well for national development," Dr. Tsekpor said on Tuesday at a seminar on the impact of expanded social spending on poverty reduction in the country.
Dr Tsekpor said there was the need for government to intensify the on-going payroll review exercise to ensure that only those who are actually working receive their salaries as well as monitor and evaluate expenditures in the various ministries, departments and agencies.
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Accra (Greater Accra) 12 June 2002- Twenty Ghanaian Real Estate companies have taken part in a two-day housing exhibition to showcase their latest housing designs being constructed in various parts of Ghana. Models on display cater for all categories of clients, from the executive types to the simple moderately priced for the lower income brackets.
The statement issued by the Ghana High Commission in London said the exhibition, which was the second to be organised by Regalon International, a Ghanaian owned company based in London, was an annual affair to market the housing industry in Ghana.
It was attended by a Ghanaian delegation including Nii Ayite Boafo, a Presidential Aide, Mr Kwabena Baa-Duodu, Deputy High Commissioner and Mr William Opare, Chief Executive, Ghana Real Estate Development Association. The participating companies included Regimanuel Gray, Manet Housing, African Concrete Products (ACP), Devtraco, Akuaba Estates, Damax Construction, Tempo Estates and Taysec Construction.
Some allied service companies such as the Home Finance Company, United Link Money Transfer, Ghana International Bank and Engineering Maintenance Limited of Sierra Leone also attended.
Mr Isaac Osei, Ghana's High Commissioner to the UK who opened the exhibition said government would facilitate the construction of 20,000 and 90,000 housing units for rental and ownership respectively. He said government would further step up its facilitation role, with emphasis on land acquisition and provision of basic infrastructure to support the development of the housing situation in the country.
He said the involvement of the government in the exhibition demonstrated the importance it attached to housing development in particular and the housing industry as a whole. Mr Osei urged Ghanaians abroad to patronise the services of the housing industry, as a demonstration of their investment in the growing housing sector.
The ACP was adjudged the best exhibitor with Manet Housing and Regimanuel Gray, taking the second and third places respectively. They were presented with engraved plaques of recognition.
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London (United Kingdom) 12 June 2002 - African miner Ashanti Goldfields Co Ltd, near to finalising a life-saving debt overhaul, revealed on Tuesday that platinum miner and major shareholder Lonmin Plc had suggested an 11th-hour alternative refinancing plan.
Ashanti, just weeks away from wrapping up a debt-for-equity swap as part of a wider debt restructuring, said it had received an alternative proposal that would involve buying out existing bonds at face value and injecting additional equity.
The Ghanaian-based miner almost collapsed in 1999 after racking up huge losses on its hedge operations. Its debt overhaul, due to go to a shareholder vote on June 28, is designed to shore up the future of the company, whose hedge book is still in the red. One industry source said Ashanti was reluctant to delay the current plan, which was still the more likely outcome. "It's a bird in the hand," the source said.
Lonmin, the world's third-biggest listed platinum group which already owns 32 percent of Ashanti, confirmed it was considering making an additional equity investment in Ashanti, but denied this would amount to a change in its own strategy.
"Lonmin has been in discussions with the Ashanti board to see if alternatives to the present financial restructuring can be developed in the interests of all shareholders," a Lonmin spokesman said.
But, he added, "Lonmin's position remains exactly the same. It's not intending to change its focus or adopt gold inside it. The Ashanti holding would remain non-core." Cash-rich Lonmin declined to say how much it would be prepared to invest in Ashanti, but industry sources put the amount as high as $75 million.
One source said Lonmin's motive was to protect its existing investment, which faces dilution if the current debt overhaul, which includes a $55 million debt-for-equity swap, goes ahead.
Under the overhaul announced in January, bondholders would forgive $55 million in debt in return for Ashanti shares at $3.70 each. At the time of the announcement, Ashanti shares fetched $3.91. Since then, the stock has risen 40 percent in tandem with a sharp rise in the gold price.
Ashanti shares now trade at $5.45, making the debt-for-equity swap much more dilutive for existing shareholders such as Lonmin. However, Lonmin's proposal, which would do away with the need for a debt-for-equity swap and buy out all bondholders at face value, would also require Ashanti to negotiate a larger revolving credit facility with its banks.
Ashanti's hedge counter-parties would also need to sign off on a change of plan. They are crucial to Ashanti's financial survival because they have exempted it from having to pay margin calls on loss-making positions in the gold derivatives market. - Reuters
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