GRi Press Review 01 - 08
- 2003
Police warns public against dubious businessmen
Minority decides to boycott discussion on Health Bill
'Don't misuse injunction'
Who is lying : Osafo-Maafo or GPHA Boss?
About ¢700m shoe deal rocks CEPS
Gold production nose dives
Two robbers escape again
Police warns public against dubious businessmen
Accra (Greater Accra) 1 August 2003 - The Director of the Criminal Investigations Department of the Police Service, Deputy Commissioner of Police, David Asante-Apeatu, has warned members of the public, especially businessmen to beware of a group of criminals who are using the crisis in the sub region to amass wealth.
He said the modus operandi of the group, made up of Nigerian and Liberian nationals is to approach successful businessmen claiming that they are Ivorian businessmen who have been displaced because of the crisis in their country and intend to do business in Ghana.
He said a number of Ghanaian businessmen have been duped of moneys running into several millions of cedis by these criminals, who are always neatly dressed in suit or 'agbada' and always choose big hotels where they meet their prospective business partners.
Asante-Apeatu said the rate at which the group is duping people is very alarming and therefore urged any member of the public who intends doing business with anybody to cross check their information before committing themselves.
He cited a case in which one Albert Akpeke, a transport owner at Ashaiman was duped in the sum of ¢280m by the group under the pretext of doing business with him. The director said somewhere in February this year, Akpeke had a call from a man who introduced himself as Alhaji Osumanu Abubakari, a big time Ivorian transport owner who wanted to relocate his business to Ghana because of the crisis.
The two agreed to meet at a friend's house at Taifa and while they were discussing business, a man came into the room to thank the Alhaji for loaning him money to clear a box containing some dollars.
According to Asante -Apeatu, Alhaji Abubakari then asked the gentlemen to open the box in his presence. When it was opened it contained several fake dollar bills which had been darkened and some jewellery. The discussion then was shifted to how to acquire a chemical to wash the dollars.
Asante-Apeatu said Alhaji Abubakari told Agbeke that he knew two gentlemen who worked with the United Nations as liaison officers and that they could help, so he should give him some money. He made an initial payment of ¢40m and subsequent payments which amounted to ¢280m.
The CID director said Alhaji Abubakari, who turned out to be a Nigerian was arrested but his six Ghanaian accomplices are still at large and efforts are being made to arrest them. - Graphic
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Minority decides to boycott discussion on Health Bill
Accra (Greater Accra) 1 August 2003 - The Minority in Parliament has decided to boycott further committee proceedings on the discussion of the National Health Insurance Bill, which commenced on Tuesday 29 July 2003.
This was contained in a statement signed by its leader, Alban Bagbin. It said it is the considered opinion of the Minority that the bill as presently formulated is not well thought out and that the National Health Insurance Scheme that is proposed will rather exacerbate the problems that it seeks to remedy.
"This view is shared by almost all stakeholders and interested parties who have advised the government not to rush through with the bill," the statement argued, adding that it agrees with the Minister of Health's comments in the memorandum to the Bill that health insurance, if not well regulated and designed, can create health inequities and barriers of access to health care.
"Our concern is to support a Bill that creates a well regulated National Health Insurance Scheme which answers the Health needs of our people," the statement continued.
It said the Minority supports an efficient and well-planned National Health Insurance Scheme, stressing that is it was under the government of the NDC that the idea of a National Health Insurance Scheme was mooted and pilot projects were established in selected districts.
"However, the Scheme as presently envisaged by this Bill will not respond to the current and future health needs of Ghanaians" the statement noted.
It said the Minority is of the view that it is improper for the government to make demands on the pension funds of the workers of Ghana held by the Social Security and National Insurance Trust (SSNIT) without adequately consulting the workers.
The statement pointed out that the failure of government to consult workers and obtain their approval before committing their contributions in this manner is, to say the least, contemptuous of the working people of this country.
According to the bill, as brought to in the statement the National Health Insurance Scheme is to be funded by two and a half per cent out of seventeen and a half per cent of workers' contributions to the SSNIT fund, adding that calculations reveal that if this is implemented, it will take only 25 years for the SSNIT Pension Scheme to collapse. "This will put the future pension of the working people of Ghana in jeopardy" it revealed.
The statement called upon the government out engage in further consultations on the issues of financing and operating the scheme with all the stakeholders across the length and breadth of the country.
This, it stressed, will give additional opportunity for the stakeholders to interact with government and Parliament in order to arrive at a possible national consensus. - Graphic
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Accra (Greater Accra) 1 August 2003 - The Chief Justice, Justice George Kingsley Acquah, has expressed concern about the manner in which some judges are now issuing interim injunctions without proper exercise of judicial discretion.
He said injunctions are causing more harm than good to the business community, individuals and the cause of justice. The Chief Justice said this at the close of an induction course for newly-appointed High Court justices in Accra yesterday.
He stated that there is a growing tendency towards the misuse and improper granting of injunctions, particularly ex-parte injunctions. "Some judges grant such injunctions and thereafter adjourn the case sine die, while others persist pending the final determination of the suit," he stressed.
The Chief Justice said nothing prevents a judge, in an application for an injunction, to decide rather to hear the case from day to day, or when it becomes necessary to grant the request, to order the applicant to give an undertaking to indemnify the affected party in a specified sum of money in the event of the court eventually coming to the conclusion that the action was incompetent and unjustified.
He stated that the judicial process should never be allowed to be manipulated by anyone to cause hardship, pain and inconvenience to any party or individual in litigation.
Accordingly, he charged judges not to be willing tools for anybody in such serious injustices through improper exercise of their discretion in applications for injunctions. "I am watching!" he warned.
On elevations to the Court of Appeal and the High Courts, Justice Acquah pointed out that under his administration, it will be determined by the number of vacancies in those areas. He said it will also be determined not on the basis of seniority but on hard work, competence, proven integrity and honesty.
He drew the attention of the newly appointed High Court judges to the fact that they can no longer do certain things they used to do when they were practising as lawyers and asked them to re-examine themselves and refrain from doing things that will impinge on their integrity as judges.
On their training, he said it is the beginning of a series they will undergo in the course of their tenure as judges, and that continuing judicial education training has now become a necessary obligation on every judge and magistrate.
The essence of the one-week course was to adequately prepare the new judges and put them in the right frame of mind to face the challenges of their new roles. - Graphic
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Who is lying : Osafo-Maafo or GPHA Boss?
Accra (Greater Accra) 1 August 2003 - The phone of the Director General of Ghana Ports and Harbours rang last Tuesday afternoon. He picked up the call, its Chronicle on the line and his voice sounded tetchy. Chronicle-"hello, good afternoon, this is Raymond Archer", GPHA boss-"Listen I don't want to talk to you okay" the phone went dead-he hung up.
Chronicle's mission was to get the reaction of the GPHA boss, Ben Owusu-Mensah regarding a revelation from the Ministry of Finance that they did not grant tax exemption to Interbeton BV in respect of GPHA's quay two extension project at Tema Harbour.
Last month, the management of GPHA, smarting under public scrutiny issued a public statement in which they said that they sought and obtained temporary tax exemption from the Ministry of Finance on 26 September 2002.
But last week, the Ministry of Finance also issued a statement backed by some documents saying that they only granted approval to GPHA to allow Interbeton to clear their goods on permit and that letter was also dated 20 September 2002.
In an advertisers announcement issued last month GPHA stated "GPHA duly applied for Tax Exemption for Interbeton and got a temporary Exemption on 26 September 2002 from the Ministry of Finance as Parliament was on recess, with the understanding that the Ministry of Transport would apply for full exemption when Parliament re-convened." The Authority has since sent all documents to Ministry of Finance which has duly applied to Parliament for the relevant approval"
In May this year, the Director General of GPHA confirmed this position of tax exemption in interview with the Chronicle when he said in the recorded interview that GPHA applied and obtained temporary tax exemption from the Ministry of Finance. He also showed a copy of the letter of exemption to the Chronicle.
Last week, the Ministry of Finance who has been under fire for granting tax exemption without Parliamentary approval released certain documents on the tax exemption saga and said that the Minister did not give GPHA or Interbeton tax exemption but rather granted approval to Interbeton to clear the items on permit and not exemption.
The Ministry also noted that GPHA approached the Ministry for tax exemption after it awarded the contract to Interbeton BV and after the contract had reached implementation stage.
Experts have criticized this move by the GPHA saying the Authority had no right to enter into a contract binding them to provide tax exemption when they hadn't received prior parliamentary approval as demanded by the Constitution. The added the offence is even worse considering that they refused to even request to Parliament for exemption until "you guys broke the story"
According to the Ministry of Finance, "GPHA in fact approached the Ministry on the tax issue after it had awarded the contract. In the course of the implementation of the contract, GPHA applied to the Ministry for duty and VAT exemption in respect of the importation of goods and services in pursuant to section 7, of the Grant agreement and Clause 2.3 of the Contract agreement.
"In our response dated 20 September, 2002, the Ministry granted approval to Interbeton BV to clear the goods on permit and not on exemption while the then sector ministry, Ministry of Roads and Transport, arranged for Parliamentary approval for tax exemption status of Agreements failing to pay which the Ministry was to pay the required duties and taxes."
In that said Finance Ministry letter, Poku Kyei, Special Assistant to the Minister wrote: "We refer to an application with reference number DG/p2/1222 dated 16 July 2002 for exemption from payment of VAT duty in respect of the importation of goods and services under the section 7 of the Grant Agreement between the Government of Ghana and the Netherlands Government as well as income tax relief for staff under clause 2.3 of the contract agreement between Ports and Harbours Authority and Interbeton BV."
What is not in dispute is the fact that the Ministry of Finance and GPHA are talking about two separate letters, one dated 20 September 2002 and 26 September 2002 .
According to GPHA, they obtained the so called temporary tax exemption from the Ministry of Finance on 26 September 2002, but the Ministry of Finance has denied it and said that they only granted approval to GPHA to allow Interbeton to clear the goods on permit.
Portions of the 20 September letter signed by the Minister's Special Assistant also states: "I am directed by the Hon. Minister of Finance to inform you that approval has been granted Interbeton BV. to clear the items as listed in the attachment on permit whiles the Ministry of Roads arrange to obtain parliamentary approval"
The documents from the Ministry of Finance reiterated that the permit they granted to GPHA to allow Interbeton to clear their goods does not by any means operate as a grant for tax exemption adding that "at all times the Ministry of Finance, Ministry of Roads and Transport and GPHA and the contractor were very much aware that Parliament's approval had to be sought for tax exemption and duty exemptions"
In one of GPHA's own letters dated 7 May 2002 and signed by the Director General, he stated that "The ORET Grant facility will require the exemption of the project from all local Tax and VAT liabilities and will therefore require the approval of Parliament"
Inspite of this, GPHA signed the $45m contract with Interbeton and promised tax exemption without even requesting Parliament about the transaction. They also sought to obtain tax and duty exemption from the Ministry of Finance even though they knew that the Ministry did no have such powers.
Article 174 (1) of the Constitution states that: "No taxation shall be imposed otherwise than by or under the authority of an Act of Parliament.
"(2) Where an Act, enacted in accordance with clause (1) of this article confers power on any person or authority to waive or vary a tax imposed by that Act, the exercise of the power of waiver or variation, in favor of any person or authority, shall be subject to the prior approval of Parliament.
(3) Parliament may by a resolution, supported by the votes of not less than two-thirds of all members of parliament, exempt the exercise of any power from the provisions of clause (2) of this article."
The ball is now in the court of GPHA management headed by Owusu Mensah to prove beyond doubt that they obtained tax exemption from the Ministry of Finance. That 26 September 2002 document might clear them.
Documentary evidence indicate that GPHA signed the contract on 15 May 2002, but refused to forward a request to Parliament for approval until Chronicle broke the story in May this year.
The Special Assistant to the Minister in an interview with the Chronicle in May this year said that they had written about three letters to GPHA, the Ministry of Roads and Transport, the new Ministry of Ports Harbours and Railways, the Internal revenue Service (IRS) and VAT Secretariat, complaining about the fact that if GPHA and the sector Ministry did not seek and obtain Parliamentary approval they would be held liable for it.
The Special Assistant also told the Chronicle in the May interview that the Ministry had granted temporary tax exemption but explained that sometimes "these things are done in order not to unduly delay a project"
He also confirmed that, before GPHA wrote to the Ministry for the exemptions, they had already signed a contract purporting to give tax exemption. - Chronicle
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About ¢700m shoe deal rocks CEPS
Accra (Greater Accra) 1 August 2003 - The cost of a thousand five hundred pairs of shoes and socks supplied to some officers of the Customs, Excise and Preventive Service (CEPS) has raised eyebrows over it and raised serious questions over the whole transaction.
In fact the make and quality of the items via-a-vis their prices have compelled some of the officers who received them to complain vehemently, calling for a probe into the whole transaction.
Each pair of shoes was supplied to CEPS at ¢450,000 while a pair of socks cost ¢35,000; thus a total amount of ¢727.5m was involved in the whole contract.
But the reaction to the suspicion of malfeasance which The Chronicle received from a CEPS purchasing committee, headed by the deputy commissioner, Research, Monitoring and Information Technology, Comfort Sarfo Boohene, was that "the transaction was done within the rules governing purchasing in CEPS and that all the rules were complied with.
"The purchasing committee says that it chose the best negotiated price based on the information available to it. The ¢450,000 and the ¢35,000 for the shoes and the socks respectively, were the lowest, and prices ranged from ¢510,000 downwards," said the public relations manager (PRM), Assistant Commissioner Pius Austin.
The items were supplied to officers in October and November last year but some of the officers who used them immediately they were received have stopped using them.
The paper gathered that an officer had one of the heels ripped off in the yard. "It has a rubber sole and does not have any special features that merit the price," said one officer this reporter talked to.
Other officers this reporter talked to challenged the cost of the items and said such a pair of shoes could be, at worst, acquired at ¢200,000 on the open market while the socks would not exceed ¢15,000, per pair.
This was beside the fact that they were supplied in large quantities, a factor that certainly could further bring the prices down. The chairman of the Senior Staff Association, Larweh, is reported to have complained about this at a workers' durbar after the new commissioner took office - an issue Larweh confirmed when reached.
Chronicle information that they were imported from India was not confirmed or denied by the PRM.
Two companies - Hold Variety and Distribution Agencies and Yorkshell Limited - supplied the footwear. Hold Varieties and Distribution Agencies supplied 1,000 pairs of gents' shoes and socks while the remaining, 500 ladies' shoes and socks, were supplied by Yorkshell Limited.
The contract to supply these items involving millions was not advertised, a fact CEPS confirmed when contacted; but with the explanation that the service had registered suppliers who were invited to tender.
"The purchasing committee sourced for suppliers and invitation letters were directed to dealer firms and companies registered with CEPS to tender for the required items," said the PRM.
According to him, the tender box was opened on 12 December 2001 while the supplies were made last year. Three companies' tenders were opened on the day in question. They were Yorkshell Ltd, Elsbury Ltd and Hold Variety and Distribution Agencies.
When asked what was so special about the shoes that it cost so much, Asst. Commissioner Austin said "they were part of the services' preventive requirements since they perform paramilitary functions." - Chronicle
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Obuasi (Ashanti Region) 1 August 2003 - Total gold production by Ashanti Goldfields Company (AGC) reduced marginally from 1,656,784 ounces in 2001 to 1,621,919 ounces in 2002. The reduction was due to operational challenges at Iduapriem, Bibiani, Siguiri and Freda-Rebecca mines, according to AGC's annual report for 2002.
The report, made available to a team of journalists who toured the Obuasi mines, said although Obuasi also experienced operational difficulties during the year, it made a turnaround in the fourth quarter, producing its best quarterly production.
The report, which included an overview of the company's operations by the chief executive and group-managing director Dr. Sam Jonah, said total cash operating cost per ounce was $199 compared with $190 in the previous year. The $9 per ounce increase was due primarily to challenging operating environment and lower production.
It said profitability and cash flow improved in 2002 over the previous year's performance, due largely to the higher gold price. Ashanti's 220 earnings before exceptional items were $79.7m, 33% higher than the $59.9m recorded in 2001.
Earnings per share before exceptional items increased to $0.67 in 2002 from $0.53 the previous year.
The report said AGC also reduced the group gross debt level further by $69m from $325.9m to $256.9m. During the year, Ashanti's hedge book was simplified further and exposure to floating lease rates was reduced by 2.4 million ounces to 2.6 million ounces in 2002.
AGC embarked on several capital projects, including the expansion of the processing plants at Iduapriem and Geita which are due to be completed this year, according to the report, which also said a deep level exploration programme at Obuasi was continued.
It said at Siguiri, feasibility studies have confirmed the viability of constructing a carbon-in-pulp (CIP) plant with completion in early 2004, estimated at $32m. The Chronicle learnt that AGC plans to seek attractive diversification opportunities in precious minerals in Africa and also build upon the company's recent award of a Platinum Group of Metal (PGM) exploitation interest in the Republic of South Africa.
Mrs. Evelyn Kwami, Human Resource manageress said the company needs money to produce more. She added that galamsey mining also disturbs the company's activities.
Isaac Brobbey head of the Environmental Service department, said AGC has a well-equipped laboratory which undertakes environmental impact assessment on any proposed new developments, making sure that all such developments adhere to satisfactory environmental standards.
As part of efforts to check pollution, he said the company has built an arsenic recovery plant at an estimate of $7m to improve the air quality in Obuasi.
According to him, the department has assisted in the successful negotiations with an overseas insurer in France for the sale of approximately 200 tonnes crude arsenic trioxide for use mainly in the wood preservation industry.
Ashanti has also commissioned the largest biox plant world wide for the treatment of sulphide ores at the sulphide treatment plant. Communities whose traditional sources have been adversely affected by their operations, he said, have been provided with alternate water supply.
In view of this, he noted that it has commissioned a sewerage treatment plant based on water stabilization pond system to treat effluents from AGC septic tanks as well as those from Obuasi township. Between 1990 and 1998, the company has built five schools in the district. - Chronicle
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Accra (Greater Accra) 1 August 2003 - Two suspected armed robbers escaped from a police vehicle while being escorted from the Accra Regional Police headquarters to the Ministries Police Station on Wednesday evening. Identified as Robert Quarshie and Kofi Owusu, they were said to have been involved in a series of robberies at Pobiman in the Greater Accra region about three weeks ago.
A source at the Accra Regional Police Headquarters told the "Times" that the incident took place at about 6.15pm near the Accra Polytechnic. The source said the suspects who were being kept at the Ministries Police Station were taken to the Accra Regional Command earlier that day for interrogation.
On their way back to the Ministries Police Cells, they jumped from the police van when there was a slight traffic hold-up near the Accra Polytechnic.
The police source could not tell whether the suspects were in handcuffs or not. It said that there was only one escort who sat in front of the vehicle with the driver, leaving the two suspects alone at the back seat.
The incident was the main issue on the lips of the Accra Regional Police Command staff as they tried to work out plans to re-arrest the fugitives.
The incident comes 34 days after John Malm who was serving a prison term for armed robbery escaped from the Nsawam prisons. He was later arrested in Lome, Togo on 6 July. - Ghanaian Times
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