Don't cheat cocoa farmers - Kufuor
GCB does not need foreign strategic investor - Participants
Government explains its inability to attain single digit inflation
Staff of MMDAs to receive car maintenance allowance this year
Strategic Investor must keep all of GCB's
branches
GCB celebrates 50th Anniversary at Ho
GCB opens photo exhibition at Sunyani
ECOWAS Chairman briefed on Ivorian crisis
Accra (Greater Accra) 21 May 2003 - President John Agyekum Kufuor on Tuesday condemned the recent case in which cocoa farmers were paid with fake cedi notes in the Birim North District of the Eastern Region describing it as "tragic news."
The President said it was cruel on anybody's part to want to pay cocoa farmers with counterfeit notes and noted that it went to reinforce the urgent need to woo farmers and other rural dwellers into using banks for their monetary transactions.
President Kufuor was speaking at the 50th Anniversary Celebrations of the Ghana Commercial Bank (GCB), the first commercial bank in the country. Cocoa farmers are paid through the Akuafo Cheque system, introduced in 1982, to guarantee payment for cocoa beans purchased by Cocobod.
But some purchasing clerks abused the system while some banks failed to en-cash the cheques promptly. President Kufuor urged the banks, especially GCB to take on the responsibility to win back the confidence of farmers into the banking system.
"The nation cannot hope to make a success of growing the economy without a thriving banking sector spreading into the rural areas," President Kufuor stressed.
He asked the Bank to intensify its efforts at diversifying its products and introduce Venture Capital and Agricultural Departments. President Kufuor said the trauma induced in people in the past by bank account seizures, the flouting of confidentiality rules and the disregarding of professional considerations in banking would take some time to disappear.
President Kufuor said he was sure that with the resilience of the Bank over the years, " this should not be beyond the capacity of GCB." He said the challenges of the Bank must be to confront and include the provision of appropriate and diverse credit delivery mechanisms to the society and business communities, especially young farmers and entrepreneurs, who were struggling to establish and nurture their enterprises and create new jobs.
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Accra (Greater Accra) 21 May 2003 - A cross-section of participants at the 50th Anniversary of the Ghana Commercial Bank (GCB) in Accra on Tuesday said it did not need a foreign strategic investor to survive in the marketplace.
They said the sale of government shares would reduce its ability to use the Bank for important development processes. The participants from industry, commerce, banking, finance, manufacturing and a diplomat were of the view that money could be raised from outside to pay for the shares from time to time.
K. B. Asante, a former Diplomat, in an interview with the Ghana News Agency (GNA) Business Desk, expressed concern about the intended divestiture of the 46.1 per cent government stakes in GCB saying, "it is not necessary to go looking for a strategic investor, who would virtually just source money from outside and come here to buy the stated shares, which could be done by any investor, either local or foreign".
He asked government to work hard at building and maintaining confidence in the Bank and prop it up. "It is then that we as a people can make the Bank attract foreign direct investment to turn things around and make it more competitive." Asante said, all over the world, governments used national and special banks for economic ventures and implement polices.
He said it was pertinent that at this time of Ghana's development, she should be able to look within, " since it abounds in talents of all sorts to move it forward". "Always looking outside is a vote of no confidence in ourselves and what we are capable of doing," he stressed. The former Diplomat told the GNA that government must look carefully for the right people with the right ability to deliver high-level performance.
"If they fail, we fire them and bring others, who can do the job." Asante explained that when GCB was established in 1953, there were no experts in banking. "However, today Ghana Commercial Bank has one of the most qualified and competent staff across the country and beyond and indeed has former staffs in all the banks in Ghana today."
The Board of Directors and Management of GCB, however, say they wished that government would look inside the country in search of a strategic investor. The Bank recently said it had managed its affairs quite creditably and must be given a free hand to bring the changes to a fruitful end.
Kweku Osei-Bimpong, Public Affairs Manager of SSNIT, said GCB could maintain its current flavour, adding: "If it is important to expose the Management and Staff to modern trends to make them competent to meet the challenges of the times, we should do so."
He noted that GCB played a very important role in meeting the needs of the lower end of the market adding that if the Bank was adequately and effectively positioned, "it can do it. What is required is that it should be encouraged and supported to do so".
Others were sceptical about finding a strategic investor, who could take up all the 130 branches of the Bank, especially those in areas where profit margins were non-existent. They contended that any investor putting money into GCB would definitely be looking back for returns; besides, business must be done according to best practices.
They cautioned that there was the possibility of embracing a strategic investor, who would agree to such terms, but later on achieving the controlling rights in the company by virtue of its share structure or the fact that it controlled Management turn to take decisions that might not be in the interest of Ghanaians.
Government on Tuesday said any strategic investor interested in taking up its 46.1 per cent stakes in Ghana Commercial Bank (GCB) could not close down any of its branches especially in non-profit areas. President John Agyekum Kufuor, who said this, described the condition as "not negotiable".
He noted that GCB had played a remarkable role to date in the development of Ghana, adding; "it is inconceivable to divest without retaining rural branches of the Bank." Ghanaians own 53.9 per cent of GCB shares while the government owes the remaining 46.1 per cent.
GCB needs $15m to computerise and network its 130 branches but government says it is unable to provide it. It thus welcomed foreign participation saying; "in today's globalised world, nationalism and patriotism by themselves, however, passionate and well intentioned, cannot sustain a bank's success and profitability.
"Hence we need a strategic investor who will make funds available to modernise the banking operations of GCB and provide the necessary know-how and sustain the banking operations," President Kufuor said. "The concept is to strengthen Management and provide resources needed for total and thorough revamping of the systems needed to bring GCB, to an appreciable level in industry."
He noted that the strategic investor idea would not necessarily entail the sale of the entire shares of government but would ensure that the basic and essential national interest in the Bank was not compromised. "Rather the object without doubt, is to enhance and sustain this national interest. This government appreciates the central role GCB has played to date and, therefore, assures the nation it is not about to slay the goose that has been laying the golden eggs."
President Kufuor said government wanted to retool, rationalise and reinvigorate the Bank so that it could continue to lay even more golden eggs.
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Cape Coast (Central Region) 21 May 2003 - The government attributed its inability to attain a single digit inflation rate as projected in the 2003 budget to the increase in the price of petroleum products, resulting in the 'shooting up' of prices of goods and services, including lorry fares and foodstuffs.
The Ministry of Finance and Economic Planning has, therefore, targeted to reduce the rate to between 20 and 22 per cent by the end of the year. These were contained in an address read for the sector minister, Yaw Osafo-Marfo, at a two-day workshop on the topic "2003 National budget statement and the enhanced HIPC initiative and poverty reduction-the role of the church in demanding public accountability," on Tuesday at Cape at coast.
The workshop, which was organised by the Christian Council of Ghana (CCG) and the Centre for Policy Analysis (CPA) was attended by a cross-section of people including the clergy, public savants and assembly members.
It was aimed among other things at creating a platform for Churches to discuss government programmes and policies to enhance the role of civil society towards policy advocacy in poverty reduction strategy. The workshop was also expected to equip and strengthen the capacity of Churches to help them to monitor the performance of government and other development agencies.
Osafo-Marfo said the government had initiated prudent economic measures to help improve the standards of living of the people. The minister said a total of ¢4,633.0bn cedis, made up of ¢3,553.0bn from the government, ¢680bn from the HIPC fund for 2003 and about ¢400.0bn cedis of HIPC resources carried over from 2002, have been allocated for the implementation of programmes and projects throughout the country.
Yaw Osafo-Marfo said: "The resources would be used to improve human development through increase in access to basic services in education, health and sanitation, safe water and for improvement in incomes of the poor and vulnerable of the society through employment generation activities and the provision of productive assets."
He said the government would be able to undertake more development projects and programmes to better the living condition of the people in 2004 when greater part of the HIPC relief fund would be received.
Dr Joe Abbey, Executive Director, Centre for Policy Analysis stressed the need for increase in production to boost the export sector for more foreign exchange for the country. He asked Ghanaians to be hard working, honest, dedicated to duty and take good care of government properties and called for the establishment of community-based organisations to monitor progress of development projects.
In an address read for him, the Central Regional minister, Isaac Edumadze praised Churches for complementing government's development efforts by establishing educational institutions and helping in the poverty reduction programme. Michael Ansa, Coordinator of CCG, urged churches to seek the welfare of the people instead of concentrating on the spread of the gospel.
The Omanhene of the Oguaa Traditional Area, Osabarimba Kwesi Atta 11, said the Church was expected to identify the social and economics problems of the people and finding solutions to them. He appealed to residents in the municipality to participate in workshops and public programmes to enable them to contribute inputs for the development of the area.
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Accra (Greater Accra) 21 May 2003 - Kwadwo Adjei-Darko, Minister of Local Government and Rural Development on Tuesday said Government had provided a total amount of ¢386.6m to cover the payment of first and second quarters of this year's car maintenance allowance to staff of Municipal, Metropolitan and District Assemblies (MMDAs).
The funds have been released and transferred to the Regional Coordinating Councils for distribution to deserving officers in the districts. Adjei-Darko announced this when answering questions in Parliament on Tuesday asked by Kwame Frimpong, Member of Parliament for Ahafo-Ano South.
Frimpong wanted to know from the Minister what plans he had to restore payment of car maintenance allowance to staff of the District Assemblies, who have been denied their due since the introduction of the Ghana Universal Salary Structure popularly called "Price Water House."
Adjei-Darko said the issue of payment of maintenance allowance to staff of the District Assemblies was first raised when their salaries were decoupled from the Government Machinery Cost Centre and transferred to the Decentralisation Implementation Cost Centre of the Budget Estimates of the Ministry of Local Government and Rural Development.
He said, however, the transfer did not go with other allowances of the staff and as a result since 2000, the maintenance allowance of district level staff had not been paid.
The Minister said in 2002 the Ministry of Finance requested that the particulars of all staff including particulars of means of transport of all staff that are entitled to payment of maintenance allowance be provided. Adjei-Darko said in spite of several reminders sent to the MMDAs for the data, the information was not forthcoming and as a result no provision for maintenance allowance was made in the Ministry's Budget Estimates for years 2001 and 2002.
He said in August 2002 another circular was sent to all District Assemblies to provide details of staff with vehicles and as at the moment 61 District Assemblies countrywide had responded.
Adjei-Darko in answer to another question said the Ministry was currently planning a new Urban Development Project to reconstruct and bitumen-surface the new site of the Suame Magazine in Kumasi. Kwabena Okerchiri NPP-Nkawkaw, on behalf of Osei Kyei-Mensah-Bonsu, NPP-Old Tafo-Suame, asked the Minister what plans the ministry had to reconstruct and bitumen-surface the new site of Suame Magazine as had been done at the Old Site. The new project is currently at the preparation stage and was scheduled for completion by June 2005.
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Strategic Investor must keep all of GCB's
branches
Accra (Greater Accra) 21 May 2003- Government on Tuesday said any strategic investor interested in taking up its 46.1 per cent stake in Ghana Commercial Bank (GCB) cannot close down any of its branches, especially in non-profit making areas.
President John Agyekum Kufuor, who said this at the 50th Anniversary celebrations of GCB in Accra, described the condition as "not negotiable". The President said GCB had played a remarkable role to date in the development of the country adding, "it is inconceivable to divest without retaining rural branches of the Bank."
Members of the public own 53.9 per cent of GCB shares while the government owes the remaining 46.1 per cent. The Board of Directors and Management of GCB wished that government would do its utmost to look inside the country in search of a strategic investor.
President Kufuor said there was no doubt that GCB needed 15 million dollars to computerise and network all its 130 branches to modernise and be competitive in the banking industry.
However, the government says neither it nor the Bank could provide the amount. It said in today's globalised world, nationalism and patriotism by themselves, however, passionate and well intentioned, could not sustain a bank's success and profitability.
The President said it was in this regard "that we need a strategic investor, who will make funds available to modernise the banking operations of GCB and provide the necessary know-how and sustain the banking operations".
President Kufuor said the concept was to strengthen the Management and provide resources for total and thorough revamping of the systems that were needed to bring GCB to the cutting edge of the banking industry.
He noted that the strategic investor idea would not necessarily entail the sale of the entire shares of government but would ensure that the basic and essential national interest in the Bank was not compromised.
"Rather the object without doubt, is to enhance and sustain this national interest. This government appreciates the central role GCB has played to date and, therefore, assures the nation it is not about to slay the goose that has been laying the golden eggs."
President Kufuor said government wanted to retool, rationalise and reinvigorate the Bank so that it could continue to lay even more golden eggs for the nation long into the future. GCB is one of the most profitable equities on the Ghana Stock Exchange.
Ghana Commercial Bank Limited, formerly Bank of the Gold Coast, was established in 1953 and charged with the provision of banking services to the emerging nation for socio-economic development.
In particular, the Bank was to pay special attention to the requirements of Ghanaian traders, businessmen and farmers, who hitherto lacked the needed financial support from the then expatriate banks. In addition it was to function as a Central Bank.
On Ghana attaining independence in 1957, the Bank of Ghana was established to be responsible for the central banking needs of the country. The Bank of the Gold Coast was then renamed Ghana Commercial bank to focus on commercial banking services.
President Kufuor, who was himself a staff of GCB in 1964 in London, for three months when he was a young lawyer, paid tribute to the founding fathers of the Bank and said government had no ideological hang-ups in the matter, "it only seeks to bring GCB into the modern age and empower it to compete favourably on the market.
"In so doing, government hopes to enable the Ghana Commercial Bank realise in the 21st century, the reasons why it was established 50 years ago; that is to support indigenous businesses to grow." GCB, the President said, ought to build on the widespread goodwill it had among the population to become an internationally competitive and successful Bank.
He congratulated the Bank, which he said, had not only confounded sceptics and survived but it had also become part of the fabric of Ghanaian nationhood. President Kufuor acknowledged GCB's role in assisting government in expanding and opening up the country for development sometimes without dwelling too much on profit considerations.
He expressed regret that apart from GCB, most banks in the country "dread" sustaining branches in many parts of the country.
"The Bank is certainly matured and should be encouraged to constantly review and rationalise its operations to face the challenges posed by the times."
Mrs Matilda Obeng Ansong, Managing Director of GCB, said the Bank had come a long way and was proud to say that it was performing creditably. She said GCB had established and maintained long-term relationships with many firms ranging from those engaged in construction, mining and crude oil import and with small and medium enterprises.
"Our contribution to these sectors is reflected in the improvement of these sectors, especially in construction, which has seen extension of communication links to all parts of the country especially to the rural areas." Mrs Obeng-Ansong said GCB was well represented through out the country for a purpose.
"Aside of inculcating banking habits to a sizeable proportion of the population, it is to enable the Bank play a leading role in the development of indigenous enterprises in the country." She noted that GCB had tried to develop through various means,
indigenous enterprises in commerce and other fields to facilitate the economic development of the country.
Mrs Obeng-Ansong said GCB had undergone significant restructuring since competition and globalisation demanded that GCB changed with the trend. "Between 1998 and 1999 for example, ... our branches were rationalised and we did rightsizing of our staff numbers and in this we did away with some structures and appendages we have built over the years and now concentrate on our core business."
"GCB has created a Corporate Banking Division, to place emphasis on our corporate customers and improved the information technology base to meet industry competition," Mrs Ansong said, adding; "we have computerised 86 branches with 25 on wide area network".
The number is expected to increase to 100 by the end of the year with 50 on the wide area network. For the future, she said GCB would effectively support the agricultural sector with micro and small enterprises in both rural and urban communities.
Kwabena Gyimah Osei-Bonsu, Chairman of the GCB Board, said globalisation had diminished the role of government while enhancing the power of business. "Ghana is no longer insulated in our liberalised regime ... we cannot be complacent ... we are poised to face these challenges," he said.
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GCB celebrates 50th Anniversary at Ho
Ho (Volta Region) 21 May 2003-Kwasi Owusu-Yeboah, the Volta Regional Minister, on Tuesday appealed to officials of the Ghana Commercial Bank (GCB) never to take anything for granted as the competition in the banking sector had become keen.
Opening a photo exhibition in connection with the 50th anniversary of the Bank, Owusu-Yeboah said the number of banks in the country was increasing every year and "any bank that will not work hard enough is bound to fold up". He said there were allegations of arrogance, pride, and disrespect against some bank officials and appealed to the guilty ones to change for the better.
"I expect that bank officials will always work diligently and patiently in a humane manner, explain whatever problems there are to their customers rather than shout at customers or treat them with scorn and disrespect", he said. He said the GCB has grown by leaps and bounds and won several awards depicting the bank's success story and congratulated them for the achievement.
Samuel Quaye, Volta region Area Manager of the bank, asked the staff not to relent in ensuring the welfare and progress of the society. He said 86 branches of the bank had been computerised and an additional 50 would be provided with the facility by the end of the year.
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GCB opens photo exhibition at Sunyani
Sunyani (Brong Ahafo) 21 May 2003- Nana Kwadwo Seinti, Brong Ahafo Regional Minister, on Tuesday lauded the lofty achievements of the Ghana Commercial Bank (GCB) but asked it to address its problems affecting banking operations.
''Customers of the bank continue to complain about lack of good service despite all the computers it has'', he said. Speaking at the Bank's 50th Anniversary photo exhibition, Seinti said the bank was coincidentally celebrating its Golden Jubilee "in this era of Golden Age of Business" and this must encourage it to constantly review its operations to face the challenges.
These challenges include developing young entrepreneurs, growing new businesses and creating new jobs through appropriate credit delivery mechanisms, he said. Nana Seinti said he expected the bank to particularly deepen its financial intermediation by stepping up deposit mobilization and going into viable ventures to support economic growth.
"Specifically, the bank must develop strategies to mop up the massive funds outside the banks and in custody of individual farmers, traders, artisans and others in the informal sector and channel them to support private sector initiatives."
The Regional Minister appealed to the GCB to develop and introduce new and innovative products that would make it gain advantage over its competitors and continue to maintain its position as the leading commercial bank in Ghana and Africa.
He said another area that the GCB would have to be proactive "is the development of products to support the government's poverty reduction strategy." ''With its 15 branches in Brong Ahafo it could be the grease that would lubricate the poverty reduction and wealth creation interventions of government in the region,'' Nana Seinti said. Ebenezer Kwame Ntreh, Area Manager of the bank, read a message from Mrs Matilda Obeng-Ansong, Managing Director of the bank at the function.
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ECOWAS Chairman briefed on Ivorian crisis
Accra (Greater Accra) 21 May 2003-Ralph Uwechue, Special Representative of the ECOWAS Executive Secretary on the Ivorian crisis, on Tuesday held a closed-door meeting with ECOWAS Chairman, President John Agyekum Kufuor at the Castle, Osu.
Sources close to the delegation said it was to brief President Kufuor on the deployment of forces on Cote d'Ivoire's western border with Liberia. Uwechue said it was necessary to brief the ECOWAS Chairman regularly on the crisis and keep him well informed of decisions to be taken to accelerate the peace process.
He explained that President Kufuor was not only the Chairman of ECOWAS but also a Father of the Sub-Region in his tireless efforts that brokered the Accra Accord. "The achievements of the Accra Accord have seen him (President Kufuor) as
God-Given to find solution to the Ivorian crisis. The people have seen the great interests he has shown in the Ivorian crisis.
"We are very grateful that the unity we are seeking is seriously promoted by Ghana through President Kufuor in this time of the crisis." At the meeting was Major-General Papa Fall, Commander of the ECOFORCE in Cote D'Ivoire, Major-General Seth Obeng, Chief of Defence Staff and Dr Kwame Addo Kufuor Minister of Defence.
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