AGC's earns 289.7 million dollars in five years
Women urged to take interest in banking system -Nikoi
AGC's earns 289.7 million dollars in five years
Accra (Greater Accra), 14th July 99-
Mr Victor Selormey, a Deputy Minister of Finance, announced on Tuesday that the Ashanti Goldfields Company (AGC) Limited, has made 289.7 million dollars profit since its divestiture about five years ago.
Mr Selormey, who was responding to questions in Parliament said between 1994 and 1998, the AGC as a group, paid a total of 52.10 million dollars as corporate tax, 1.2 million dollars and 14.3 billion cedis in foreign and local currencies respectively, as dividend tax.
On whether the floatation of AGC has benefited the country, Mr Selormey replied in the affirmative, saying "we have avoided diminishing value by divesting the company.
He said it was impossible to mention specific projects that the divestiture receipts had been used for, but indicated that proceeds from the divestiture had supported the budget.
Asked whether the Minister of Finance's dual position as leader of government's economic management team and also chairman of the AGC Board of Directors is not a source of conflict of interest, Mr Selormey said he did not think so.
He said, "the question of interest is subjective and I do not see the cause for this suspicion".
To a suggestion that the remuneration of the Board Members of the AGC has adversely affected the financial position of the company, the Deputy Minister, who could not tell how much members earn, said he did not think it was huge.
He said, however, that remuneration of board members of companies has not been known to cripple the business.
On whether all ministries, departments and agencies (MDAs) have complied with Cabinet's directive that they should submit a complete list of their value books to the Controller and Accountant-General (CAG), Mr Selormey said no MDA has so far done so.
He said the Ministry is, however, aware that some MDAs have furnished the CAG with a partial list.
The Ministry, he said, is studying a report from the Auditor-General on the audited value books currently in use by all MDAs, for the necessary action to be taken.
Asked what action is being taken against MDAs, which have defaulted in submitting the list of value books, Mr Selormey said before the Cabinet's directive, the then sector Minister, had authorised some MDAs to print their own value books.
In the circumstance, he said, there is no reason for any MDA to be penalised since the Minister acted within his powers.
The Deputy Minister said the Auditor-General has been directed to take inventory of value books in the system and it is only after the exercise that sanctions would be applied to any MDA, which fails to submit the list of value books.
Mr Selormey announced that there is an on-going review of tariffs and said since the exercise, duty on imported items has been progressively lowered from 65 per cent to the current 25 per cent, adding "this will further be reduced to 20 per cent in due course''.
Asked about the duty on imported kerosene lantern, he said the rate is 25 per cent, noting that this is rather on the high side.
He said under the review exercise, the ministry was looking at group of items, including kerosene lantern and candle, with the view to giving them appropriate rates to reflect the current realities.
To a suggestion that a zero-rated duty be imposed on kerosene lantern, since it is widely used in the rural communities, Mr Selormey replied that the suggestion would be considered in the review.
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Women urged to take interest in banking system -Nikoi
Kwahu Pepease (Eastern Region), 14th July 99-
Mrs. Gloria Nikoi, Vice-chairperson of the Association of Rural Banks, has urged women to take active interest in the banking system to enable them to get financial assistance.
She asked women to save and purchase shares of rural banks to enable the banks to give them financial assistance to lessen the burden of caring for the family.
Mrs. Nikoi, addressing the 17th annual general meeting of the Kwahu Rural Bank at Pepease in the Kwahu South district on Saturday, said with their population advantage, women could assist the rural banks to mobilise funds to enhance development in the communities.
Mrs. Nikoi, who is also the chairwoman of the Board of Directors of the Akwapim Rural Bank, said rural banks mobilised 112 billion cedis last year into the financial sector.
She called on rural banks to adopt effective measures to improve their financial base to qualify for registration by "the Apex Bank, which commences operations next year".
Mr Ernest Apeadu, Vice-Chairman of the Board of Directors of the Bank, said the bank made a net profit of 177 million cedis last year as against 60 million cedis in 1997.
He said deposit mobilisation also increased from 770 million cedis in 1997 to 1.2 billion cedis last year.
Share capital recorded a growth of five per cent from 37.5 million cedis in 1997 to 39.6 million cedis last year and the bank
granted 515 million cedis as loans to its customers as against 385 million cedis the previous year.
The Vice- Chairman said as a result of its significant performances, 19.8 million cedis had been approved as dividend to share holders, adding that three cedis would be paid on a share to the share holders.
He called on the share holders to increase their share capital to a minimum of 100,000 cedis within the next two years to enable the bank to sell the remaining shares to the public.
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