American company acquires diamond company
Central bank to strengthen internal controls of Rural Banks
Ghana Stock Exchange index goes up in active trading
Accra (Greater Accra) 13 October 2001 - An American company, MAR d'Gold Corporation, has acquired the Ghana Consolidated Diamonds Limited, an official statement announced in Accra on Friday.
The statement said the buyer is an international company that specialises in all commercial aspects, associated with precious metals and gems. "It also provides comprehensive business associated with the buying, marketing and distribution of precious metals on the international market."
The Akwatia-based GCD has faced stiff competition from diamond winners who have been encroaching in their concession.
The statement quoted the Minister of Trade and Industry, Dr Kofi Konadu Apraku as saying he hopes MAR d'Gold would reorganise GCD.
The Chief Executive of MAR d'Gold, Ms Maria Socorro Araneta, said they have "very good plans for the environment" and intend to develop the area.
GRi../
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Tema (Greater Accra) 13 October 2001 - Ghana Telecom (GT) is to expand its existing telephone lines at the port and industrial city of Tema from 24,000 to 50,000 under a new five-year business plan covering 2002 to 2006.
Mr Charles Cobb, Tema Commercial Manager of GT, who was speaking in an interview, said the plan involved installing new telephone exchanges to serve the periphery of Tema, where new residential areas and businesses are springing up.
New telephone exchange would be provided for Lashibi, Communities 13 to 20, Communities 21, 22 and Michel Camp to Afienya.
A new switch would also be put up to serve the Enclave of the Tema Export Processing Zone (EPZ) area at Kpone.
Mr Cobb said GT was also increasing transmission efficiency through new fibre cables being laid from Tema to Accra along the Tema beach road to the Cantonments exchange.
On the current rate of default in the payment of telephone bills in Tema, he said over 90 per cent of consumption was paid by customers because GT was using disconnection as a very effective tool for debt collection.
Mr Cobb said disconnection was not the best option since GT stood to lose some revenue from potential callers to the disconnected lines.
However, the system of putting defaulting customers on one way to receive calls before they were later disconnected had rather been comfortable to them.
Initially, the practice was to call customers, who owe GT to remind them to settle their telephone bills but some of these customers rather took offence and rained insults on GT officials on the phone.
GRi../
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Abokobi (Greater Accra) 13 October 2001 - The Bank of Ghana (BOG) on Saturday announced modalities to strengthen internal controls for Rural Banks to ensure prudent financial management practices.
Mr Amadu Montia, BOG Deputy Chief Manager, Banking Supervision Department, said the Central Bank had employed the services of experienced bankers to relieve rural bank managers who have not gone on leave to enable them to enjoy their vacation.
He said the objective is to ensure an independent check on the operational and internal control systems of rural banks but stated that this should not be misconstrued as witch-hunting but rather be regarded as a necessary internal control tool for improved performance.
Mr Montia, who was addressing the Ninth Annual General Meeting of Shareholders and Directors of Abokobi Rural Bank, near Accra, urged the Boards of Directors of rural banks to constantly monitor and improve internal controls to check fraudulent activities by officials.
Statistics indicated growing public confidence in the Rural Banking system, which needs to be sustained through prudent managerial practices supported by effective and active Boards of Directors, he said.
Total deposits mobilised by all Rural/Community banks as at June 2001 amounted to 303.01 billion cedis, an increase of 121.87 billion or 66.73 per cent over the same period last year.
The Deputy Chief Manager said financial data of the Abokobi Rural Bank indicated that between December 31, 1999, and December, 2000, the bank's deposits increased from 868 million cedis to 1.631 billion cedis.
Loans and advances also increased from 203 million cedis to 316 million cedis; investments from 690 million cedis to 1.600 billion while maintaining a positive capital adequacy ratio throughout the same period.
The bank's profit rose from 54.0 million cedis in 1999 to 192.95 million cedis in 2000, representing an increase of 257 per cent, adding that the bank has set aside 22.89 million cedis as dividends for shareholders, while 44.2 million cedis and 109.72 million cedis were transferred to the Statutory Reserve and Income Surplus Account respectively.
Investment in treasury Bills over 14 years was only 650 million but this rose by 600 million to 1.25 billion cedis in 2000.
GRi../
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Accra (Greater Accra) 13 October 2001 – The Ghana Government has reviewed upwards the producer price of cocoa for the main crop season, which began Friday, to, 384,000.00 cedis from 3,872,000.00 cedis per tonne, representing an increase of 35 per cent over last year's.
The new price puts a bag of cocoa at 274,000.00 cedis up from 242,000 in the light crop season in March this year.
The Minister of Economic Planning and Regional Integration, Dr Kwesi Nduom, announced this shortly after a meeting of the Producer Price Technical Review Committee in Accra. The Review Committee is made up of various stakeholders in the industry.
Dr Nduom, who now acts as the Finance Minister, said in line with the government's commitment to pay cocoa farmers attractive prices, it has also increased their share of the Free on Board price of Cocoa from 65 per cent in the last crop season to 67 per cent in the current season.
This represents an average dollar FOB price of 4.5 per cent over the same period last year. He said this would be graduated on yearly basis until a 70 per cent share is achieved by the 2004/2005 cocoa season.
Dr Nduom said based on the actual and projected exchange rates for the two periods, the farmers' share increases from 585.76 dollars in the 2000/2001 cocoa season to 612.29 dollars in the current 2001/2002 season.
GRi../
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Accra (Greater Accra) 13 October 2001 - The Ghana Stock Exchange All-Share Index went up by 2.12 points on Friday in active trading that saw nearly two million shares changing hands.
Gains by UNIL, SPPC, GCB and HFC dwarfed a 50-cedi loss by blue chip Aluworks. The index went up to 960.37 points from 958.25 points.
HFC sold 1.9 million shares as the bourse experienced another flash of the activity of a big investor.
Unilever (UNIL) gained 40 cedis at 2,250, Super paper Products Company gained 15 cedis at 2,300 cedis, Home Finance Company (HFC) made two cedis at 952 cedis, and Ghana Commercial Bank (GCB) was up by 20 cedis at 1,520 cedis. Aluworks (ALW) lost 50 cedis at 4,250 cedis.
Market capitalisation was up at 3,912.61 billion cedis. Below are the closing prices of the listed equities in cedis:
ABL 320
AGC 18,800
ALW 4,250 -50
BAT 625
CFAO 60
EIC 3,000
FML 1,000
GBL 1,300
GCB 1,520 +20
GGL 901
HFC 952 +2
MGL 240
MLC 142
MOGL 20,000
PAF 800
PBC 450
PZ 1,000
SCB 20,500
SPPC 340 +15
SSB 2,300
UNIL 2,250 +40
CMLT 430
GRi../
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