Social Security Trust fork out ¢77
billion for State Transport’s take-over
Kumasi Metropolitan Assembly in
crisis meeting
Tomato “war” lands three in
hospital
Accra (Greater Accra) 25 March 2002 - A forensic audit commissioned by
the Government into the operations of the Social Security and National
Insurance Trust has slammed top officials of SSNIT for issuing credit
guarantees to Vanef to the tune of ¢77 billion for the acquisition of the State
Transport Company (LTD), without Board Approval. But both SSNIT and Vanef
sources say, the auditors did not know what they were commenting on.
According to the audit report no proper asset and business valuation of
STC was done before guarantee was issued. “Officials involved in the
transaction should be sanctioned, “ the report recommended. Officials cited for
the sanction are former Director-General Charles Asare, Asiedu Gyamfi, Ernest
Thompson of the Legal Department and Biga.
Both officials of SSNIT and Vanef say the auditors do not know what they
were talking about. Thompson told this reporter that though he is said to have
been cited in the audit findings, he was not even contacted to explain any
action. He has also not seen the report. A source at SSNIT said the Trust only
took advantage of the Vanef proposal to recoup long standing owed by the
government and that SSNIT did not guarantee ¢77 billion as alleged.
“The actual guarantee is around ¢18 billion. We took advantage to swap
¢54 billion owed SSNIT by Government,” sources said. This view is collaborated
by John Owusu Bonsu, Managing Director of Vanef/STC, who also corroborated
assertion by SSNIT sources that they signed a performance agreement with him
and not his company to run STC on behalf of the consortium of SSNIT, David
Dorte Company Limited and Vanef Limited. “The agreement is between me as an
individual and the consort based on my background and performance.”
A literature on Vanef/STC put up by the new operators of STC to sell
their image to the public said: “Vanef Consortium was established in 1996 to
acquire the assets of the erstwhile State Transport Company under Government’s
divestiture Programme. The membership of the consortium comprises VANEF Limited,
David Dorte Company Limited and SSNIT Fund. The consortium owns 80 percent of
the passenger service.
“The remaining 20 per cent share is owned by the Government. The
consortium also owned 100 per cent of the Bulk Haulage and surplus assets and
lands of the former STC.”
There are those who point to the Managing Director’s relationship with
the former First Lady, Nana Konadu Agyeman Rawlins as one of the major factors
that influenced the acquisition. Public Agenda has learned that Owusu is a
cousin of the President of the 31st December Women’s Movement (DWM).
Asked to comment on general assertion that he was able to acquire STC
because of his family ties with former First Lady, Owusu said he won the bid in
his own right. “It was the vision that I sold to SSNIT and Divestiture
Implementation Committee (DIC) that won me the bid. Mr relationship with her
did not play any role…It was the vision…She personally doesn’t know the details
of the agreement. It is me and that’s it.”
Owusu said he is also related to President Kufuor but that has not
influenced his competence in any way. “I’m related to President Kufuor. Does
that increase my knowledge?” He quizzed. – Public Agenda.
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Don’t push for Fast Track Court review - Tsikata
Accra (Greater Accra) 25 March 2002 - Mr Tsatsu Tsikata, the Ghanaian
legal wizard who is currently turning Government lawyers in sixes and sevens
has intimated that he is not worried at all about the review that is being
sought by Government.
He told his audience in a radio interview last Friday that it was the
right of every Ghanaian to go for a review when confronted with a similar
situation but was clear that the planned review was not going to change
anything. He explained why the decision of the majority is the correct one
despite several protestations to the contrary. Tsatsu was answering questions on
the Accra-based Joy FM.
Without raising his voice as he is wont to do and repulsing hostile
reactions from callers with calm, he gave educative riposte. Tsatsu noted that
24 hours after he had successfully brought down the entire Fast Track Court
system, like Samson, on grounds of unconstitutionality, he was arraigned before
a normal high court on the same charges.
At that court, he again levelled his prosecutors, and walked out of the
court on the same charge a free man. Ever the true professional player, he did
not allow himself a glow of arrogance or betrayed any haughty sense of
accomplishment in his truly epic legal gymnastics that had rocked the
foundations of the judicial infrastructure.
To all intents and purposes, the charge of causing financial loss in the
Valley Farm case is history. Dead on arrival. To another question, he noted
that he was very dismissive of ‘so-called forensic reports’, which had been
commissioned by Government to unearth acts of improprieties at GNPC. He
lambasted the reports and questioned the integrity of the findings on grounds
that they constituted fundamental breaches of auditing principles since he was
never presented with the reports for his input or comments.
Clearly, he signalled that the forensic report, which constituted the
basis of evidence against him and would very likely form the material for legal
action against him would not survive the scorching heat of his legal arsenal
when he lets them loose. Tsatsu, an Oxford aluminus and as much a legal
juggernaut as he was an abysmal failure in terms of his desecration of the
economy during his tenure at GNPC, is on record to be arguably, among the very
top league in law.
The youngest ever to graduate during his term, he is currently being
celebrated among the legal fraternity in Oxford, England for his victorious
runs.
Continuing, Tsatsu complained about the difficulty he was experiencing
in having access to official records, which were being freely quoted in certain
newspapers. After pointing out flaws in the now illegal Fast Track Court
system, he was asked why he did not raise the inherent weakness and
illegalities he has observed ab initio if he was saying his action was rather
deepening the development of the constitution of Ghana and jurisprudential
development.
The ‘legal wizard’ noted that it was not his call, adding that in the
law profession, that would have amounted to touting, that is angling for
someone else’s brief or job, and it is something that is frowned upon. To
another caller’s accusation that he was playing for sympathy, he disagreed and
explained calmly that he had been called by the radio station. Earlier, he had
actually accused millions of people of having been prejudiced against him. “To
them I am already guilty” and the so-called FTCs are intended to carry out
confirmation of that supposed guilt.
Never for a moment did he admit what has been supposed to be his failure
at GNPC. Rather, he insisted GNPC attracted ¢300 million into Ghana’s oil
exploration from 1985 to 2000 and finally put to rest the rampant fuel
shortages that had for decades rocked Ghana by instituting marketing channels
for constant supplies. Pressed by the radio station, he admitted some debts
were incurred but quickly balanced it with “those debts were incurred in order to
achieve a productive purpose.”
Though parrying off direct questions flowing from allegations recently
made by Dr Kwesi Botchwey, one time (P)NDC Minister for Finance on the popular TV
programme ‘Kwaku One-on-One,’ Tsatsu still insisted, “it is not the case that
GNPCs borrowing threw Ghana’s economy out of gear.” Indeed all investments he
made in ECOBANK, Unipetrol etc., were successful.
When asked why he digressed from oil exploration into a gamble and that
threw away GNPC and Ghanaian taxpayer’s money under the guise of investments,
he stoutly defended his Valley Farm Projects with some logic. He said GNPC had
a close relationship with COCOBOD, which provided the bulk of the foreign
exchange his corporation required. And as diseases were devastating most cocoa
farms, he felt obliged to rescue Valley Farms with financial assistance.
In all his claims, the ex-GNPC boss seemed to have two witnesses: the
GNPC itself and the NPP government, ironically. If one really wants to look at
the impact of the GNPC, one needs to talk to the marketing departments and the
technocrats in the corporation… And today, the senior minister can say Ghana is
about to strike oil as a result of the foundation he (Tsikata) laid, he argued.
– The Ghanaian Chronicle.
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Accra (Greater Accra) 25 March 2002 - One of the truly simplistic and
dramatic comments in the Tsatsu – Nana Akufo-Addo legal contests came from a
roasted plantain seller close to the Supreme Court building. After observing
the usually simply dressed Tsikata walk by after court, she observed, “how can
such a man be guilty of embezzling so much?”
Taking in some more gossip about his conquests and the reaction of the
crowd towards him, she added, “Why doesn’t the Government make him the
Attorney-General?” “Ebaahi ha wo” (Ga for “It will be good for us.” – The
Ghanaian Chronicle.
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Kumasi (Ashanti Region) 25 March 2002 - The Kumasi Metropolitan Assembly
(KMA) is to meet on March 27 and 28 to deliberate on reasons why a third of the
86-member Assembly recently brought the heat to bear on the Metropolitan Chief
Executive (MCE), Mr Maxwell Kofi Jumah.
The 30 Assembly members had threatened to meet last March 4, 2002 to
pass a vote of no confidence in Jumah. They could, however, not carry out their
threat because of the timely intervention of the Minister of Local Government,
Mr Kwadwo Baah-Wiredu, which intervention called off the intended meeting for
the resolution of vote of no confidence.
A memorandum of understanding was signed on February 28 at a joint
meeting of the Minister, Regional Minister S.K. Boafo, the MCE, the Presiding
Member and the aggrieved Assembly members to that effect. The March 27 meeting,
according to an official spokesman of KMA, is to discuss in detail conditions
set out by the 30 aggrieved members as a demand on which to compromise their
stand against the mayor.
Among the allegations, which sparked off the impasse are that the mayor
had unilaterally refused to work with the L.I. and also allow sub-metro
councils to collect and retain 50 per cent of all revenue in their area of
authority in accordance with Part 2, Section 26 and 27 of the L.I. They also
called for the abolition of the Transport Committee and the Traffic Task Force,
which was accused of using excessive force in operations.
The Assembly members also called for the withdrawal of all attaches from
KMA operations. It was also recommended that the towing of vehicles must be
stopped and accounts of the previous operation rendered to the Assembly while
KMA takes steps to engage a 24-hour towing service.
The members also wanted the KMA boss to abrogate unilateral decision in
respect of the Kejetia Teminal, Adehyeman Gardens and Fox Trap because they
would want the full Assembly to be part of all negotiations and decisions. They
also called for the review of an agreement between the Assembly and one Stanley
Owusu (waste management contractor) for the approval of the Assembly.
Among others, the Assembly members also wanted all long serving
personnel at KMA due for transfer to be released without further delay to
enhance efficiency. Accusing the MCE of “Divide-and-Rule” tactics, the 30
Assembly members called on MCE Jumah to reconcile with his staff, particularly
the Metro Coordinating Director, Mr Essandoh. The alleged excessive increment
in rates, fines and taxes must be reviewed to alleviate untold hardship and
suffering of the people, they stressed.
Chronicle has learnt, however, that some of the conditions have already
been met. While, some of the grievances bordered on technicalities and pure
administration, others seem ‘mere’ charges and that the 30 Assembly members
have no serious case against Jumah, the KMA mouthpiece explained. The Task
Force has been disbanded and that KMA is about to recruit new members for
screening to constitute a proper and acceptable task force. The services of Mr
Kwabena Marfo, as a volunteer on the task Force, have been withdrawn.
Meanwhile, the Race Course Traders Association have commended the mayor
of Kumasi for his achievement so far, in transforming the city of Kumasi.
According to the traders, Jumah had instilled discipline among revenue
collectors at the Central Market towards the traders. Mr Isaac Buabeng, general
secretary of the association wished Jumah be allowed to stay in office to
accomplish the good work he has already embarked upon. – The Ghanaian
Chronicle.
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Ashanti Goldfields in new debt restructure move
Obuasi (Ashanti Region) 25 March 2002 - The
Ashanti Goldfields Company Limited has secured a $100-million revolving credit
facility and conversion of debt into equity. The move is to enable the company
to carry out its restructuring plan that it announced last January to overcome
its debt burden it incurred through derivatives in late 1999.
Ashanti concluded a conditional deal to refinance $219 million of
convertible bonds in an effort to repair its balance sheet. It has also entered
into an agreement with four of its counterparties in hedge contracts to
continue dealing with the company on a margin-free basis.
Sam Jonah, Chief Executive of Ashanti, says: “It (Ashanti) has secured
approval from those of the hedge counterparties whose support is required to
implement the proposed restructuring to continue margin-free arrangement.
Ashanti is yet to receive approval from Credit Suisse First Boston, an
investment bank. It would continue to explore ways in which it can persuade
CSFB to sign the interim-free agreement so that once those agreements become
effective, it would be able to benefit from ongoing margin-freeze trading with
all of its hedge counterparties.
Whiles Ashanti could not give assurance that this could be achieved;
neither the proposed restructuring nor the written undertaking was a condition
of the CSFB agreement.
In January, Ashanti said its creditors had agreed to extend by five
years the maturity of three-fifths of the bonds due next year. Furthermore,
$54.6 million of debt would be exchanged for equity by issuing Ashanti shares
at their marked value of $5.75, a 55 per cent premium to the closing share
price on the day before the announcement of the proposed restructuring on
January 25.
Watchers of the gold industry say that provided the gold price does not
rise too high, Ashanti can look forward to continued margin-free arrangement
beyond the years, since the other counterparties have agreed not to make their
cooperation conditional upon unanimity.”
Conditions that do apply are the completion of the proposed restructuring
of the 5.25 per cent notes; release of the interim margin free agreement from
escrow; and the availability of loan facility of not less than $25 million. The
company is on the way to fulfilling those conditions with the new $100 million
facility, a 5-year, revolving credit facility arranged by Barclays Capital,
Bayerisch Hypoind Vereinsbank, Rothschild’s and Standard Bank. – Daily Graphic.
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Accra (Greater Accra) 25 March 2002 - This year’s ban on drumming and
noise making, which precedes the annual Homowo celebration of the Ga State,
begins on May 6. Consequently, residents of Accra have been advised to observe
the ban to avoid any confrontation.
Nii Adote Obuor II, the acting President of the Ga Traditional Council,
announced this at a post independence reception and awards ceremony organized
by the Regional Coordinating Council (RCC) in Accra. He said the ban will be
lifted on June 6.
Nii Obuor, who is also the Sempe Mantse, said any resident who is not
ready to comply with the ban should move elsewhere and return after the
directives. Nii Obuor appealed to the government to return unused lands to the
traditional council instead of re-selling them.
Sheikh I.C. Quaye, the Greater Accra Regional Minister expressed the
hope that the Permanent Conflict Resolution Committee that was set to mediate
between traditional groups and religious bodies will be able to resolve
whatever conflict that may arise during the ban.
“We wish to urge all parties to accept recommendations of the committee
and that each should be prepared to compromise for the good of the society,”
the regional minister stressed. He noted that religious violence, as can be
seen in other parts of the world, has serious consequences, “and we cannot
afford to bring those consequences to our region and so we must try to avoid
this at all costs.”
Sheikh Quaye called on all Ghanaians to come together to wage a war
against indiscipline and lawlessness in the society. On land issues, he said
the government has adopted pragmatic measures to resolve land problems between
the government and landowners in the country. He said it was for this reason
that the Permanent Site Advisory Committee was reconstituted in the region to
assist the government in resolving land disputes.
The reception was attended by ministers of state, members of the
diplomatic corps, members of Parliament, metropolitan and municipal chief
executives, traditional rulers, religious leaders, assembly members and a
cross-section of the society. Some companies were awarded for their
contribution towards the development of agriculture in the region. – Daily
Graphic.
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Koforidua (Eastern Region) 25 March 2002 - The Eastern Regional Chairman
of the New Patriotic Party (NPP), Nana Adi Ankamah, has said the National
Democratic Congress (NDC) has not yet come to terms with its defeat after one
year. “Due to this, its members term the NPP’s probe into their financial
misappropriation and other excesses when they were in power as with-hunt,” he
said.
Nana Adi Ankamah made this remark at a mini-rally organized at Koforidua
on Monday by the New Juabeng Constituency members of the party to mark the NPP’s
were one year in office. He said the NPP government will do well to retrieve
monies that were misdirected by members of the past government. He called on
the people to keep supporting the NPP, adding that the government has a vision
for Ghanaians, which will transform their living conditions.
The party’s Eastern Regional Women’s Organiser, Rosenna Addo, called on
the women to organise themselves so that they can benefit from the numerous
loans that the government has for women. She also called on women supporters in
the municipality to be patient with the party, assuring them that better times
are yet to come for them.
The Municipal Chief Executive, Nana Adjei Boateng, who said the
government will give out loans to trust-worthy people who will pay up for
others too to access the facility, called on people in small-scale industries
to take advantage of the loans that have been made available to them.
He said the assembly is still urging people in the municipality, who
took loans under the Poverty Alleviation Scheme, to pay up so that others can
also use the facility. He said more initiatives are going to be established by
the government so that people can develop themselves. – Daily Graphic.
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Sunyani (Brong Ahafo Region) 25 March 2002 - Dr
Nsiah Gyabaah, Principal of the Sunyani Polytechnic has decried the lack of
implementation of reports from committee set up to investigate issues. “In
Ghana, we are very good at setting up committees, spending time, money and
effort to produce very good reports. However, the results of most of the
committees are often not implemented,” he emphasized.
The Principal pointed out Ghana can only
develop if we take steps to implement workable plans that come out of public
debate.” He was speaking at an educational forum on the review of the
Educational System in the country. Present were the Brong Ahafo Regional
Minister, Ernest A. Debrah a five member Presidential committee led by
Professor Addo Fening, lecturer of the University of Ghana. Others were
District Chief Executives, Paramount Chiefs and a cross section of the public.
Highlighting on the educational crisis in the
country, Dr Gyabaah indicated that, “our sense of time, the value we place on
time is part of the crisis. Students, teachers and administrators have little
respect for time, resulting in low achievement. He touched on the recent threat
to stability in education and condemned the spate of indiscipline; increase
violence and confrontation between students and administrators as well as
between students and government.
The Principal, who also chaired the function stressed
that the present educational reform could not succeed without the support of
parents. “Therefore, the district assemblies should use part of their common
fund to support bright but needy students. Foundations, individual
philanthropists should be encouraged through generous task breaks to support
education whiles financial institutions should also be urged to offer low
interest loans to students after proper guarantees of repayment”, he intimated.
The Regional Minister, on his part, emphasized
that the type of education to be pursued in the country should adequately equip
the students with the necessary skills and vocation. That, he explained, would
make the students entrepreneurial so that at least they could on their own if
they did not find employment in the public or private sector. “Any educational
reform should, therefore, be geared towards making the Ghanaian self-oriented
and independent.
Dr Debrah was of the view that “if we are to
move abreast with the global change and compete favourably with the developed
and developing countries, it is therefore imperative that on the quest for
educational reforms we consider Information Technology - The Ghana Times.
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Kumasi (Ashanti Region) 25 March 2002 - A quarrel over has landed a
teacher of the District Assembly Junior Secondary School at Asuhyiae, near Tepa
in Ashanti, his wife and a third person at the Komfo Anokye Teaching Hospital
with severe cutlass wounds.
Collins Gyan, the teacher and his wife Akua Afriyie, were rushed
together with Kwadwo Boadu, a farmer, to the hospital about a fortnight ago.
The couple were treated and discharged a few days after admission but Boadu is
said to be still on admission.
According to police sources, at about 6 pm on March 4, Gyan accused
Boadu of stealing a quantity of tomatoes from his farm. Fuming with rage, Boadu
asked Gyan to substantiate the allegation or face the consequences.
An ensuing quarrel generated into a fierce fight during which the two
men, armed with cutlasses, freely slashed each other. Afriyie who went in aid
of her husband sustained cutlass wounds. Neighbours who intervened rushed the
three to the hospital. The Tepa Police are investigating the incident. – The
Ghanaian Times.
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