Standchart loss pulls Accra bourse index down
Kufour says government committed to stability of Cedi
GHACEM to invest 7.7 million dollars in equipment
Accra (Greater Accra) 13 September 2001 - The rising price of crude oil on the world market following terrorist attack on the World Trade Centre in New York and Pentagon in Washington on Tuesday would have negative impact on Ghana's economy.
Yaw Osafo-Maafo, Minister of Finance, told journalists at the State House in Accra on Wednesday that, "market speculation after the attacks have already shot up crude oil prices and this is our major concern".
The International Petroleum Exchange (IPE) Brent crude oil futures surged $3.60 a barrel to $31.05, rising above the $30 mark for the first time since December 2000, Reuters report said.
The surge appeared to be the biggest one-day move since the Gulf Crisis in 1990-91.
The Finance Minister said any consequence of the attack on the dollar was likely to affect Ghana.
Additionally, he said, any information on world trade that would be lost would affect Ghana as a member of the international community. He, however, expressed optimism that there was back-up information on world trade.
On a positive note gold price surged in Europe as nervous investors scrambled for safety in solid assets with the precious metal jumping as much as $16 an ounce in London trading, with the afternoon fixing hitting $287.00 from $271.40 in the morning and compared with $272 before the first strike.
Loss of life was expected to be catastrophic from the collapse of the giant towers of the World Trade Centre, where some 50,000 people worked.
The two 110-story towers collapsed one at a time in a huge cloud of smoke and fire when hijackers smashed two airplanes into them at 18-minute interval. "As this enormous tragedy is unprecedented in American history no one can have any comfort in guessing what the financial markets outcome will be," said Michael Holland, Chairman of New York-based money manager Holland & Company PLC.
"Currently, all of us are concerned with the human casualties and the markets will simply have to sort themselves out over the next few weeks," Holland said.
The New York Mercantile Exchange was closed. Several top financial services firms had offices in the destroyed World Trade Centre, including Morgan Stanley, Switzerland's Credit Suisse Group and Germany's Commerzbank and Deutsche Bank.
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Ho (Volta Region) 13 September 2001 - The Board of Directors and Management of the Ghana Telecom (GT) are initiating strategies to purge the company of bribery and corruption.
Professor S. K. B. Asante, Chairman of the Board of the company, said they were aware that some workers collude with agents of communication centres to dupe GT while others extort money from customers before restoring telephones.
Prof. Asante told a three-day workshop on revenue collection for 45 Regional Heads, Area Managers and Management Personnel on the theme: "Effective revenue collection" at Ho on Wednesday.
"All these have become a subject of public outcry against Ghana Telecom and the new Board will not hesitate to dismiss and prosecute any member of staff found indulging in such disgraceful acts."
He said a corporate customer unit has been set up to concentrate on the company's corporate customers. Telephone numbers have been shared among customer representatives in order to hold them responsible for any overdue account and to improve revenue collection.
Prof. Asante said new customer service points were being opened and existing ones expanded throughout the country. The Accra-North office is being remodelled.
Additionally, he said negotiations were currently taking place with some banks to enable customers to pay their bills there, adding, "currently Merchant Bank services are being used".
Mr Douglas Wagba, Volta Regional Head of GT, said customers in the region owe the company 3.5 billion cedis, adding, "most of the bills are being contested by those who owe us".
He suggested that the company's billing system be improved to win the confidence of the public to increase the payment ratio.
Mr Wagba called for the building of a permanent regional office at Ho. Mr Kofi Dzamesi, Deputy Volta Regional Minister, said the availability of an effective and reliable telephone system would entice investors to the region.
He said only six district capitals out of the 12 in the region have telephone facilities. Jasikan, Kadjebi and Nkwanta Districts have no telecommunication facilities.
Capital Telecom Company, which was awarded contract to install telephone facilities at Akatsi, Sogakope and Adidome, performed poorly, he said.
The main purpose of the workshop was to develop strategies and action plans to improve the present rate of payment of bills and the commitment of the participants to achieving set targets.
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Accra (Greater Accra) 13 September 2001 - The GSE-All Share Index was down 4.49 points at mid-week trading on Wednesday when Standard Chartered Bank (SCB), a traditional banking heavyweight, lost 500 cedis to pull it down.
The index, which marked-time on Monday, closed lower at 948.77 points from 953.26 points, thanks to Patterson Zochonis (PZ), which gained five cedis to moderate an other wise heavy loss.
Until the loss SCB, the second most capitalised equity behind Ashanti Goldfields, had successfully maintained its share price of 21,000 cedis.
On the broader market traded volumes rose slightly at 64,800 shares compared 20,900 at the previous close.
There were two price changes - one positive and the other negative. PZ gained five cedis to close 705 cedis. However, SCB lost 500 cedis at 20,500 cedis. Market capitalisation fell heavily at 3,850.30 billion cedis from 3,858.96 billion cedis on Monday.
Below are the closing prices of the listed equities in cedis:
ABL 630
AGC 18,500
ALW 4,300
BAT 600
CFAO 60
EIC 2,900
FML 1,000
GBL 1,300
GCB 1,550
GGL 900
HFC 952
MGL 240
MLC 130
MOGL 20,000
PAF 805
PBC 450
PZ 705 +5
SCB 20,500 -500
SPPC 356
SSB 2,300
UNIL 2,000
CMLT 430
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Accra (Greater Accra) 13 September 2001 - President John Agyekum Kufuor on Wednesday asked the Bank of Ghana to step up its operations to stabilise the Cedi, bring down inflation and interest rates to facilitate investments by the private sector.
The government has the confidence in the personnel at the bank, who have the requisite experience to offer advice and the needed solutions to the economic problems of the country.
President Kufuor was swearing-in Dr Paul Amoako Acquah, the new Governor of the Bank of Ghana (BOG) as a member of the Board of Directors of BOG at the State House in Accra. Dr Acquah swore the official oath and the oath of secrecy.
President Kufuor said: " With your 25 years experience at the IMF, you are well equipped to give the best advice."
Dr Acquah said the government's determination to ensure fiscal discipline, efficient use of public funds and zero tolerance for corruption would guide the Bank to work efficiently and effectively.
He pledged to serve the country with the experiences acquired to ensure economic growth. Dr Acquah, Deputy Director, Africa Department of the International Monetary Fund, was appointed the Governor of the Bank of Ghana to succeed Dr
Kwabena Dufour, whose tenure of office ends on September 30.
He holds a Bachelor of Science Degree from the University of Ghana, Legon, Masters Degree in Economics from Yale University and a Doctorate Degree in Economics from the University of Pennsylvania School of Economics.
The Vice-President Aliu Mahama, Minister of Finance, Yaw Osafo Maafo, and Miss Elizabeth Ohene, Minister of Media Relations were present.
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Tema (Greater Accra) 13 September 2001 - The Ghana Cement Works (GHACEM) is to invest 7.7 million dollars on two projects in 2001/2002, Mr Severe Moller, Works Manager for Tema Factory said on Wednesday.
He said 4.5 million dollars would be spent on separators to facilitate the grinding of cement to improve quality and also to cut down power consumption.
A silo and packing plant at the cost of 3.2 million dollars would also be installed. Mr Moller was speaking to Samuel Evans Ashong Narh, Tema Municipal Chief Executive, who paid a familiarisation visit to the factory.
He said these would increase their storage capacity by 3,000 tonnes to 9,500 tonnes adding that currently there were three silos with a total capacity of 6,500 tonnes.
Narh, who was a former employee of GHACEM, said he was happy that the factory was expanding its operations that would provide Ghanaian youth with jobs.
He said the government's aim of encouraging privatisation was to bring competitiveness and improve the quality of service and expressed his appreciation to GHACEM for taking a decision to privatise some aspects of its operations to facility the growth small-scale businesses.
"While you are making more money you should assist the community in which you operate." He told the Management.
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