GRi Business, Economics & Finance 01 – 11 - 2002

Review activities of six mining companies

Ghana will play active part towards monetary union- Aliu

Cocoa anti-smuggling Initiative launched

Government wants early divestiture of GCD - Minister

Lotto Writers to pay Four billion cedis to government

 

 

 

Review activities of six mining companies

 

Nkawie (Ashanti Region) 01 November 2002- The people of Mpatuam and its surrounding villages in the Amansie West District of Ashanti have petitioned the government to review the activities of the six mining companies operating in the areas.

 

They said the all their stool lands were under mining concessions and that the mining companies were destroying their land indiscriminately, thereby creating social, environmental, economic, health and spiritual problems for the people.

 

The petition named the companies as Bonte Gold Mines Limited, Lost Valley Mining Company, Abu Amponsa Company, King Midas Company, Jenin River Mines, E.K. Agyemang Group and Nyameye Mines.

 

The petitioners called on the government to suspend any further concessions and operations of mining companies on their degraded land as a matter of urgency and assess the extent of damage and harm they continue to cause to the people of Mpatuam and the country and determine the necessary and befitting compensation to the people.

 

This, the petitioners contend, will mitigate the negative impact the operations of the mining companies have on the people for now and the future.

 

They catalogued a number of difficulties brought upon them by the activities of the mining companies and said serious pollution had been caused to water bodies and the aquatic life and said rivers Bonte and Jenin, which used to serve as main sources of drinking water had been destroyed.

 

''Now there is water rationing at Mpatuam from the few boreholes existing before these mining companies started operating and that the companies have made no attempt to provide potable water for us to alleviate our sufferings,'' they contend.

 

They also mentioned dangers posed to their lives by the digging of deep dams and ponds by the mining companies which had been left uncovered and which serve as breeding grounds for mosquitoes.

 

''Large hectares of cocoa farms have been destroyed and are still being destroyed. Mpatuam, once a leading cocoa producer in the district, cannot boast of this prestige,'' the alleged.

 

The petitioners alleged that ''proper and meaningful compensation'' has not been paid to the people. The mining companies unilaterally determined what should be paid without the involvement of the people and the Valuation Board as stipulated by law.''

 

The petitioners said the human rights of the people were constantly violated anytime they spoke freely on issues of serious concern affecting them and alleged that the mining companies used the military and the police to subject them to inhuman treatment.

 

However, when Mr James Peprah Sarpong, Administrative and Personnel Officer of the Bonte Gold Mines Limited, was contacted, he described the petition as frivolous, malicious and without an iota of truth.

 

He said the company had been of immense help to the Mpatuam community and its environs in the provision of social amenities.

 

Mr Sarpong said the company employs a permanent staff of 400 while seasonal work brought in another 200 at any particular period and that each employee, spouse and up to six dependants enjoy free medical care under a health insurance scheme paid for by the company and that currently over 3,000 individuals are covered.

 

He said the company had kept the road from Nkawie to Jeninso to Akaniase, a distance of 30 kilometres constantly maintained over the past 10 years and it rehabilitated the Adobewura to Amangoase feeder road to link the Bibiani road at the cost of 20 million cedis.

 

Mr Sarpong said five years ago the company constructed a 21-kilometres high-tension electricity line from Moseaso to Mpatuam at the cost of about 800,000 dollars and that the routing was deliberately chosen to benefit six villages.

 

The line had since been extended to Bonteso, enabling about 10 villages to qualify for the provision of power under the Self-Help Electrification Programme (SHEP).

 

He said under an agreement with Electricity Company of Ghana (ECG), the company paid for the provision of power to Aboabo and Tetrem and that today under the SHEP programme, Essuowin, Ahwerewa and Esaase had been hooked onto the national grid while Bonteso, the nearest village to the plant had been provided with street lights.

 

The company, Mr Sarpong said, also assisted with the maintenance of potable water systems in the area and made a contribution to the Esaase water project and recently sunk five boreholes in five villages on the Jenin mining lease at the cost of 160 million cedis.

 

He said the communities looked to the company to provide jobs for every youth and to undertake every development project, power, water, schools and clinics which was not possible and said the aspirations of the people made them perceive the company as not being helpful, thereby bringing about strained relations.

 

Mr Yaw Adu, a Director of King Midras Company and Mr E.K. Agyemang of Agyemang Group, when contacted, refuted the allegations and said all the mined areas had been reclaimed and adequate compensation approved by the Land Valuation Board duly paid to the deserving farmers, while they had been supportive of the communities in the provision of amenities.

GRi…/

 

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Ghana will play active part towards monetary union- Aliu

 

Accra (Greater Accra) 01 November 2002- Vice President Aliu Mahama on Thursday said Ghana would fully support all activities toward the adoption of a monetary union for West Africa to facilitate trade and movement for the socio-economic benefit of the 250 million people in the Sub-region.

 

Vice President Mahama said this when he received Mr Mory Kaba, Secretary of State for Cooperation of Guinea, at the Castle, Osu, who presented an invitation from Guinean President Lansana Conte, to the Summit of Heads of State of the Second Monetary Zone, West African Monetary Zone (WAMZ), to be held on 7 November in Conakry.

 

Vice President Mahama said Ghana would be adequately represented at the Summit and at the Meeting of the members of the Convergence Council of Ministers of WAMZ that would be held alongside the Summit.

 

He recalled the Eighth Convergence Council of Ministers and Governors of the West African Monetary Zone Meeting in Accra last June, saying that demonstrated Ghana's commitment to the adoption of a single monetary unit by the sub-region.

 

The decision to adopt a West African Monetary Zone as part of the ECOWAS effort to introduce a Single Monetary Zone by 2004 was made at a meeting of Heads of State of six West African countries two years ago in Accra.

 

With the Monetary Union, resources in the Sub-region would be pooled to create a larger regional market, increase trade, significantly improve domestic and foreign direct investment and create more jobs that would lead to a higher standard of living.

 

Mr Kaba stressed the importance of the Summit, saying Ghana's participation was crucial as key decisions that would lead to the formulation of policies would be made. The Agenda for the Summit includes a date for the take-off of the Common Central Bank, selection of Headquarters of the Central Bank and the contribution to the capital of the Central Bank.

 

Presidents John Agyekum Kufuor, Yahya Jammeh of The Gambia, Lansana Conte of Guinea, Olusengu Obasanjo of Nigeria and Ahmed Tejan Kabbah of Sierra Leone are expected to attend.

 

Others attending the Summit would be President Pedro Verona Pires of Cape Verde, Charles Taylor of Liberia and Dr. Mohamed Ibn Chambas, Executive Secretary of ECOWAS.

 

The Summit would be preceded by a technical experts meeting from 3 November 2002. The President of the ECOWAS Bank for Investment and Development, Director-General of the West African Monetary Agency, Director-General of the West African Institute for Financial and Economic Management and the Director-General of WAMI would also attend.

 

Convergence criteria for members include the achievement of single digit inflation by 2003, a foreign exchange reserve covering imports for not less than three months.

 

Additionally, their budget deficit to their Gross Domestic Product (GDP) should be less than five percent, while their Central Banks credit to their governments should be less than 10 percent of the previous year's tax revenue. None of the countries have fully met the convergence criteria. Though, the Gambia achieved these last year, it has slipped.

GRi…/

 

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Cocoa anti-smuggling Initiative launched

 

Accra (Greater Accra) 01 November 2002- Defence Minister Kwame Addo Kufuor on Thursday launched an Anti-Smuggling Initiative to reduce cocoa smuggling for the country to benefit fully from the current high price on the world market.

 

The Initiative is intended to persuade people living in cocoa growing areas along the borders to support government combat cocoa smuggling, which is contributing to the shortfall in cocoa production.

 

At a ceremony at Burma Camp attended by the various security agencies and stakeholders Dr Addo Kufuor said records available indicated that Ghana had a shortfall of about 60,000 metric tonnes of cocoa due to smuggling and the black-pod disease.

 

He said this shortfall estimated at about 510 billion cedis would have provided many clinics, feeder roads, boreholes and classroom blocks for deprived communities along the country's borders.

 

Dr Addo Kufuor noted that the activities of professional smugglers who cart large quantities of cocoa beans across the border contributed to the problem since such large volumes could not be carried in small quantities on the heads of individual smugglers.

 

He identified other factors contributing to the problem as delays in the disposal of cases involving smuggling in the law courts, the cocoa purchasing system, which was fraught with inefficiency and corruption and the poor road networks within cocoa growing areas that hinder smooth transportation to marketing centres.

 

Other factors are the differentials in the producer price of cocoa in Ghana and neighbouring Cote d'Ivoire and the closure of some rural banks in the cocoa growing areas.

 

Dr Addo Kufuor said to minimise the smuggling of cocoa, suitable incentives would be given to the chiefs and people living in the border areas to ensure they cooperated fully with COCOBOD and security agencies in the war.

 

As part of the initiative, any community that would effectively participate in the exercise resulting in significant reduction of cocoa smuggling would receive additional incentives that would include COCOBOD providing school uniforms, stationary and pencils for needy pupils in the target area.

 

Additionally, one-third of the proceeds which would be recovered from smugglers would be paid to such a community in line with the existing proportion used by the Customs, Excise and Preventive Service (CEPS).

 

The CEPS Management Law, PNDC Law 330, 1993, states: "The Commissioner may reward from the general revenue any person who informs him of any offence against this law or assists in the recovery of any penalty."

 

Dr Addo Kufuor said COCOBOD should support efforts by the Department of Feeder Roads in re-gravelling or re-shaping roads in communities along the borders to enable cocoa to be swiftly evacuated.

 

He appealed to COCOBOD to expedite action to collect data on farm size, location of cocoa farms and annual output of farmers, especially those in border areas for expected produce to be quantified and the necessary support given.

 

The Minister suggested that subject to the availability of logistical resources, COCOBOD should also purchase available beans at any time of the year.

 

He said as part of incentives to curb smuggling, COCOBOD would pay a pre-season bonus to cocoa farmers this year and government would be engaged in the spraying of farms to help improve yield.

 

Dr Addo Kufuor urged the security agencies and local communities to participate in the anti-smuggling activities, saying that the launch would be followed by durbars in the Brong Ahafo, Western and the Volta regions.

GRi…/

 

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Government wants early divestiture of GCD - Minister

 

Akwatia (Eastern Region) 01 November 2002- Mr. Kojo Adjei Darko, Minister of Lands Forestry and Mines, has said the government would do its best to ensure the divestiture of the Ghana Consolidated Diamonds Limited (GCD).

 

He said the delay in selling the company was caused by the failure of prospective companies to patronise the programme.

 

Mr. Adjei-Darko said this when he met workers of GCD at the company's premises at Akwatia in the Eastern Region and revealed that Mard'Gold, a US company, was expected to start payment for the company by the end of the week.

 

He appealed to the workers to put in their best to prevent the company from sinking further and asked the management team of GCD to bring proposals on how beat to keep the place running.

 

The Minister said there was the need to streamline activities of people who had leased portions of GCD's land.

 

He said such people had to be granted concessions after they had applied. Their applications would go through the GCD board to the Minerals Commission. The ministry would act on the commission's recommendation.

 

Mr James Lemaire, General Manager of the Company, said the area being mined by the Company had been declared non-economic. He said the lack of appropriate machines and equipment had prevented them from going for economic concessions. "Our financial position is not favourable."

 

Mr Joseph Godson, Board Chairman of GCD, said the main problem facing the company was illegal mining. He said the Company's land is so vast that it could not be monitored effectively.

 

In 1988, studies by Sofre Mines, a French firm, led to recommendations that GCD be divested. In 1991, INCO Ltd, a Canadian company, operated under an interim management agreement for 18 months but failed to purchase the company at the end of the period.

 

In 1994, De Beers of South Africa also managed the company under an interim management agreement for 18 months and pulled out at the end of the period. Between 1997 and 1998, it was offered to the now defunct Teberebi Goldfields in Tarkwa for 800,000 dollars. This was however, called off after the workers petitioned the government against it.

 

In 1999, another sub-committee was set up over the divestiture of the GCD, leading to Mard'Gold, a US company offering to buy the company at 17 million dollars. The offer was withdrawn for review when the present government came to power but was reintroduced upon an agreement that Mard’Gold make an initial payment of 10 million dollars and pays the remaining seven within six months.

GRi…/

 

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Lotto Writers to pay Four billion cedis to government

 

Accra (Greater Accra) 01 November 2002- The National Association of Lotto Agents and

Writers (NALWERS) have decided to pay about four billion cedis monthly income tax with effect from 30 November 2002.

 

This was a resolution passed by the Association at an emergency meeting in Accra on Wednesday, 30 October.

 

In order to achieve the expected target, the Association entreated all lotto agents and writers throughout the country to be alive to their civic responsibilities to register and pay the prescribed monthly tax of 4,000 cedis per member.

 

Mr Mark Bosompem, acting national chairman of NALWERS dilating on the need to assist government to generate funds for national development said lotto agents and writers, like any other citizen owed it a duty to contribute to national development.

 

He stated that, to ensure effective collection of the tax, members are to pay their monthly taxes in their respective areas through their districts for onward transmission to their regional offices.

 

Mr Bosompem gave the assurance that the present executive of the Association would account for all monies collected and implored members to desist from using plain sheets as coupons instead of the approved VAT booklets.

 

The Association also resolved to appoint a committee to meet with Mr Stephen Asare, the largest lotto operator to negotiate with him to pay all winning arrears owed to his agents.

 

Mr A. K. Boa-Amponsem, Greater Accra Regional Chairman urged members to be committed to the Association and refuse to allow any tendencies to divide their ranks, adding, "there has been long-standing allegations of non-payment, often by lotto writers and agents over the years.

GRi…/

 

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