GRi Business, Economics & Finance 04 – 10 - 2002

There is no cause to withdraw from IFC loan negotiations

Makola-Tema Station Market fire victims assisted

Establish indicators for poverty reduction initiatives

 

 

There is no cause to withdraw from IFC loan negotiations

 

Accra (Greater Accra) 04 October 2002- President John Agyekum Kufuor has said that the government had not encountered any defects that would warrant her withdrawal from the negotiations to contract one billion cedis from the International Finance Consortium (IFC).

 

Addressing his second news conference since he became Head of State, President Kufuor said in the government's bid to contract the loan, which was earmarked for massive infrastructure development, the government had acted cautiously in the interest of the people of Ghana and eventually, it would be known that it did not short-changed the nation.

 

"Within the capacity of the government, due diligence was made to ensure that the Consortium was made up of serious and reputable entities. And at every stage of the negotiations, the government has taken extreme care to ensure that they were fair and above reproach."

 

President Kufuor stressed that the Minister of Finance and the Governor of the Central Bank, were aided by lawyers, consultants and experts in the negotiations for the loan to ensure that the right thing was done, saying, "this government is very meticulous in making decisions for the people of Ghana."

 

The IFC loan agreement has been a regular subject of discussion in the media since the opposition National Democratic Congress (NDC) held a news conference some months ago and described it as a "419 scum," before it was approved by Parliament.

 

Recent media reports have said the government was chasing a mirage in its pursuit of the loan and even though the President sought to address the issue in his 40-minute speech, which most of the questions at the news conference centred on it.

 

Apart from the genuineness of the loan, Journalists asked questions about the International Monetary Fund (IMF)'s position on the loan, the sovereign guarantee on the loan and when it would be ready.

 

President Kufuor said the government would at the appropriate time make public the details of the loan and urged Journalists to let discretion and caution guide their comments on the issue.

 

He said the IMF had recently expressed satisfaction about the government's management of its financial issues. On how soon the money would be released to Ghana, the President said, "a syndication of this magnitude of the proposed loan takes many months to put together, and to finalise it, it normally entails great discretion on the part of the negotiators."

 

Explaining why the government was pursuing the loan, President Kufuor said receipts from the national budget or the traditional multilateral lending was unavailable to develop Ghana's infrastructure to acceptable modern standards.

 

"We had to call upon the vastly greater resources of the capital market," he said, adding that..."it was with this background that when the government was approached, it agreed to talk with the IFC about a billion-dollar loan facility."

 

He underscored the importance of upgrading infrastructure, saying it would encourage foreign direct investments inflows and facilitate agriculture and industrial growth. Answering a question on a reported statement he allegedly made about the loan becoming ready in two weeks, Senior Minister J.H. Mensah who could not recall giving any deadline, assured Ghanaians that, "the money would come, and you would be glad."

 

"We are on course, but we do not dictate the pace of proceedings," he said, adding that a definite statement would soon be made on the issue. President Kufuor addressed issues relating to the Economy, Social Services, Agriculture, Foreign Relations, Governance and Infrastructure and what he termed Miscellaneous, in his eight-paged speech and answered questions on his relationship with former President Rawlings, the Gulf

Stream Presidential Jet, the Dagbon Crisis, Work Ethics and Ghana Airways.

 

The two-hour news conference held at the Castle, Osu was attended by several Journalists from both the Private and the State-owned Media. Vice President Aliu Mahama and more than 25 Ministers of State and government officials were present. President Kufuor announced that the news conference would now be held once every quarter.

GRi…/

 

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Makola-Tema Station Market fire victims assisted

 

Accra (Greater Accra) 04 October 2002- The Provident Insurance Company Limited (PIC), has presented a cheque for 30 million cedis to 11 fire victims of the Makola Market near the Tema Station who secured themselves under the Special Investment Plan (SIP).

 

The SIP is a policy loan scheme for both low and high income earners to enable them receive some sort of pension during their old age and also in time of disaster one can have access to part of the contributions.

 

The eleven beneficiaries were members of the Gents Wear Club (GWC), a club within the Makola-Tema Station Traders Association. Mr Meneman Oppong-Ampomah, Life Manager of PIC, said the gesture was to assist their clients to get back into business and to enable them to continue to give support to their families.

 

He said although all of them were not qualified to receive the claim, the organisation deemed it fit to give them a helping hand in commemoration with the company's 20th anniversary celebration.

 

He, therefore, urged other members in the market to secure themselves with life assurance so that they could be assisted in time of hardship. Mr George Noma, Financial Secretary of the GWC, on behalf of his colleagues thanked the PIC for the assistance and assured the management that they would go ahead to insure their family members against future disaster.

 

Earlier, the executive of the Makola-Tema Station Traders Association and few of their members prevented the officials of the PIC from doing the presentation at the burnt market.

 

They said that if the presentation was done within the premises, government would no longer assist them again. The officials had no choice than to move to under a nearby tree behind the PWD office as no amount of explanation could convince the protesters to soften their stand on the issue.

GRi…/

 

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Establish indicators for poverty reduction initiatives

 

Goaso (Brong Ahafo) 04 October 2002- Dr. K.E. Mensah-Abrampah, a lecturer at the

Department of Planning of the Kwame Nkrumah University of Science and Technology (KNUST) has called for the establishment of poverty indicators for the disbursement of funds from poverty reduction initiatives.

 

He stated that most people who receive the funds did not need such assistance and the indicators would ensure a positive impact on the life of the real poor people. Dr Mensah-Abrampah, a facilitator of Poverty Measurement and Monitoring Component of the Community-based Poverty Reduction Project (PMM-CPRP), was speaking at a workshop aimed at sensitising the public on the project for heads of departments in the Asunafo District at Goaso.

 

The project, which is under the World Bank Learning and Innovation Loan (LIL) programme, is being implemented on pilot basis in the Komenda-Edina-Eguafo-Abirem in the Central Region, Asunafo in the Brong-Ahafo and Bawku East in the Upper East Region.

 

It is aimed at equipping the three district assemblies with a monitoring system to enhance planning for poverty reduction, in addition to strengthening and enhancing their capacities to measure and monitor poverty levels.

 

Dr. Mensah-Abrampah expressed regret that data collected for certain economic indicators were processed late, thus making them irrelevant. The 2000 Population Census and details of the various towns and villages have still not been released after two years, he said.

 

The facilitator advised Heads of Departments in the Districts to make data that they collect available to the District Assemblies before sending them to their headquarters. He advised Unit Committees to collect basic information about their areas to ensure proper planning for sustainable development and the eradication of poverty.

 

Mr George Yaw Boakye, Asunafo District Chief Executive (DCE), said government was committed to its promise to enhance the living standards of the people through the institution of a number of interventions.

 

He, therefore, called on the Heads of Department to be abreast with the government's policies and programmes to enable them to effectively play their roles towards the achievement of set targets.

GRi…/

 

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