GRi Business, Economics & Finance 19 – 03 - 2002

Government cannot take action on Ghanair now

Delegation for ITU departs for Morocco

Osafo-Maafo, J.H. Mensah in Mexico for summit

SSB Bank, GCB sustain gain of Accra bourse despite big SCB loss

 

 

Government cannot take action on Ghanair now

 

Accra (Greater Accra) 19 March 2002 – The Government says it can not take any action on Ghana Airways Company until a report on a forensic audit ordered into the affairs of the national carrier was submitted.

 

"It is important for government to have all the facts about the condition of the airline, its operations and management practices before any decision can be taken by Cabinet," Dr Anthony Akoto-Osei, Special Advisor to the Minister of Finance told the Ghana News Agency.

 

He said Cabinet could not take any decision with what he said was "one-sided information and appeals from the management of the company. Dr Akoto-Osei was speaking about government's plans to salvage the distressed airline and management's concerns about its support. Ghanair is indebted to a tune of about 150 million dollars of which six million dollars is owed to the Ghana Civil Aviation Authority (GCAA).

 

Ghana Airways contributes about 30 per cent of GCAA's annual revenue and its indebtedness was due to its inability to pay airport passenger service charges collected on behalf of GCAA and aeronautical charges levied on its operations.

 

A Ghanair flight to New York was stalled recently in Dakar, Senegal for non-payment of arrears of three billion CFA Francs to a French aeronautical company. Dr Akoto said "the report of the forensic audit must be ready and available so that when government has to go to Parliament to request for a loan, it has sound basis for any argument for the company."

 

He said he was not happy that the management of Ghanair was taking up the role of its Board in telling government what and how Ghanair problems should be handled. Dr Akoto-Osei said the Ghanaian economy could not support a US or Europe-like bail out. "That means we have to go back to tax the taxpayer some more and this cannot be."

 

The GNA, investigations by revealed that the audit was to be completed over a two-week period. Dr Akoto-Osei said Ghana Airways needed a new management to ensure that any injection of capital could be properly and efficiently utilised for maximum returns.

 

Ghanair needs about 120 million-dollars to turn its fortunes around, he said. "This is huge and the government might not be able to provide that much. However, there is a grand plan to bring the airline back into profitable operations," he added.

GRi../

 

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Delegation for ITU departs for Morocco

 

Accra (Greater Accra) 19 March 2002 - An eleven-member delegation of Parliament led by the Speaker, Mr Peter Ala Adjetey, left Accra, on Monday, for Marakesh-Morocco, to attend the 107th conference of the Inter-Parliamentary Union (ITU).

 

The delegation, which would be away for 11 days included Mr Papa Owusu Ankomah, Majority Leader and Minister of Parliamentary Affairs and Mr A S K Bagbin, Minority Leader.

 

The conference would discuss issues including the consideration of the union's Presidency, political and socio-economic situation in the world and the role of the parliament in developing public policy in an era of globalisation. It would also consider environmental degradation and parliamentary support for the Kyoto Protocol.

GRi../

 

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Osafo-Maafo, J.H. Mensah in Mexico for summit

 

Accra (Greater Accra) 19 March 2002 - The Senior Minister and Chairman of Government Economic Team, Mr J. H. Mensah and the Finance Minister, Mr Yaw Osafo-Maafo, left Accra on Monday for Montero, Mexico, to represent President J A Kufuor at a special summit on financial development.

 

The five-day summit, which would be attended by about 32 heads of state and finance ministers would discuss and take major decisions on the provision of resources to reduce poverty and to promote health and education in poor countries.

 

Mr Osafo Maafo said they would deliver a paper on financing development, adding that, the summit would afford developing countries the opportunity to argue for the removal of subsidies on European-Agricultural products and to call for liberalised trade.

 

The Finance Minister who would be chairing a sub-committee on partnership and development said issues like assisting Africa with advanced-technology, trade and co-operation instead of direct aid would also feature on the agenda. Already in Montero for the summit were Dr Paa Kwesi Nduom, Minister of Economy Planning and Regional Integration, Dr Abdul Wahab Alhassan of the Ministry Finance and the Chief Executive of the Ghana Investment Promotion Centre, Mr Kwesi Abeasi.

GRi../

 

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SSB Bank, GCB sustain gain of Accra bourse despite big SCB loss

 

Accra (Greater Accra) 19 March 2002 - Standard Chartered Bank (SCB), the most expensive equity on the Accra bourse, lost a whopping 500 cedis on Monday, but gains by SSB Bank, Unilever and Ghana Commercial Bank (GCB) sustained the rise.

 

SCB ended trading at 20,500 cedis after selling 38,000 of the 57,600 shares that changed hands. The Ghana Stock Exchange All-Share Index, the main market index, gained 1.31 points at 998.36 points from 997.05 points.

 

SSB Bank which gained 150 cedis on Friday, made another 43 cedis at 2,703 while UNIL appreciated by 130 cedis at 2,750 cedis. Ghana Commercial Bank (GCB) gained one cedi at 1,656. Total shares traded were 57,600 up from 33,300 shares.

 

Change for the year was also up at 4.44 per cent from 4.30 per cent. Market capitalisation was up at 3,986.22 billion cedis from 3,983.67 billion cedis.

The following are the closing prices of the equities in cedis:

ABL                    321              

AGC            18,800

ALW               4,300                                     

BAT                    629  

CFAO                 60

EIC                  3,121                         

FML                   950

GBL                 1,000

GCB                1,656  +1

GGL                   910              

HFC                   950              

MGL                   Trading suspended

MLC                   147                          

MOGL         18,550    

PAF                    750              

PBC                    450

PZ                    1,100                                                             

SCB             20,500     -500    

SPPC                  342  

SSB                 2,703  +150

UNIL               2,750  +130

CMLT                430

GRi../

 

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