GRi Press Review 26 - 08
- 2003
Ghana govt warned against international fraudsters
We won't give up land for mining - Okyenhen
The life and works of Dr Busia on exhibition
"NHIS will ensure quality medical care for all"
Barton-Odro to contest on Cape Coast NDC ticket
Ensure security at ports - Kufuor
Bids for Ashanti too low - says Sam Jonah
Randgold defends Ashanti bid - It has expertise, cash
Legal Database now for export
Minority rubbishes SSNIT's statement
Dagbon crisis is manageable - JAK
Ghana govt warned against international fraudsters
Accra (Greater Accra) 26 August 2003 - Ghana and the Republic of Benin have been warned to be on the alert against an Indian business group, the Vaswani Brothers, described as "economic termites" who have defrauded the Nigerian Federal Government to the tune of N40bn (about ¢2trillion) through tax evasion.
Whilst Nigeria is licking its wound from the fraud that has prompted their deportation from that country, the "Chronicle" has uncovered moves by the Vaswanis - Sunil, Marsh and Haresh - to pitch camp in Ghana. Nigerian press reports said the N40bn represents tax evasion and other fraudulent practices at the Nigerian ports by the Vaswanis between 1999 to 2003.
In view of this the reports have warned the authorities in Ghana and Benin to look into the business of the Vaswanis in their respective countries for similar activities.
The warning comes against the background that the Vaswanis are operating in Ghana, Benin and Nigeria under different company names. "If they can defraud the Federal Government of Nigeria of such a whopping amount of what is the guarantee that Ghana or Benin is not facing a similar fate"? The Chronicle sources asked.
The Federal Government of Nigeria deported the three brothers, who built a business empire that is believed to be thriving on scam and scandal, from Nigeria on 29 May, this year. Their deportation followed revelations that between 1999 and 2003 they had defrauded the Nigerian government of about N40m through tax evasion.
Chronicle can report that deported Vaswanis who owned a chain of automobile companies in Nigeria have other business interest in Ghana, one of which is The Honda Place, an automobile company that deals in Honda cars. The place was set in Ghana last year.
Chronicle gathered that the strategy adopted by the Vaswanis in Nigeria to evade tax is being employed in Ghana too. Early this year, Honda Place nearly outwitted the Customs, Excise and Preventive Service (CEPS) with a number of vehicles the company imported without tax.
Through the vigilance of CEPS officials about 50 of the cars were impounded which attracted heavy penalties. - Chronicle
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We won't give up land for mining - Okyenhen
Kyebi (Eastern Region) 26 August 2003 - The Okyenhen, Osagyefo Amoatia Ofori Panin II has said that cost benefits of the bauxite deposit in his traditional area and he would oppose any attempt by government to exploit it.
"Yes it will create employment (referring to a $2m investment to mine the bauxite) but it will bring diseases and underdevelopment that have characterized other mining communities", he told a delegation of Ghana Institute of Surveyors who called on him at Kyebi.
"Pollution and disease might terminate the life expectance of the people. We will eat our "kontomire" to live longer rather than to get satisfied today and die early because of diseases associated with mining."
The Surveyors had called at the Ofori Panin Fie last Saturday to express support for the Okyenhen's campaign on preservation of forest and efficient management of land. He said since mining started at Obuasi, Tarkwa, Prestea, Akwatia and other areas, very little development has been seen. "History has shown that mining communities have not benefited immensely from mining companies.
"If we get money and we don't have clean air to breath, healthy food to eat and land to stand on, then what we have acquired would be in vain", he noted. Osagyefo said globalisation is one of the causes of the problems confronting the environment adding that in the name of globalisation, foreigners are given concessions to mine and cut lumber without due regard for its environmental impact.
The Okyenhen attributed the rampant violence and loss of lives associated with land use to indiscipline and disrespect for authority. He said that people pay bribe to build unauthorized structures, blocking waterways, which causes flooding when it rains. "There is no discipline and when you try to instill discipline, you are branded with all sorts of names", he lamented. - Chronicle
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The life and works of Dr Busia on exhibition
Accra (Greater Accra) 26 August 2003 - The Vice-President, Alhaji Aliu Mahama, yesterday opened a 12-day exhibition on the life and achievements of Professor Kofi Abrefa Busia, the Prime Minister of the Second Republic of Ghana, at the National Theatre in Accra.
The exhibition of photographs and artefacts, organised by the Busia Foundation, an NGO, is on the late premier's childhood, school days, marriage and family life, academic, political career, campaign tours, his trips outside the country, life in exile, death and burial ceremonies.
Most patrons, including Ministers of State, reverend ministers, politicians, media practitioners, traders, academics, students, young men and women, were enthused about some of the photographs, especially those involving Prof Busia and Dr Kwame Nkrumah, Ghana's first President, J.H. Mensah, the Senior Minister, President J.A. Kufuor, who was then Deputy Foreign Minister, Dr Hilla Limann, President of the Third Republic and a former diplomat, and the youthful days of President Gnassengbe Eyadema of Togo.
Photographs on the cutting of sods for the commencement of work and inauguration of projects such as the Kaneshie Market Complex, Accra-Tema Water Supply, Prampram Water Supply and others by Professor Busia attracted the attention of patrons.
The Minister of Environment and Science, Professor Kasim Kasanga, the Minister of Tourism and Modernisation of the Capital City, Jake Obetsebi-Lamptey, a member of the Council of State, Madam Amma Busia, Naa Morkor Busia, the wife of Prof Busia, G. K. Osei Bonsu, Chairman of the Busia Foundation, and other dignitaries attended the ceremony.
The Vice-President described the late Premier as a great son who preached and put into practice the tenets of love and passion for democracy, good governance, civic education and respect for human rights. He said it is, therefore, appropriate that he is remembered for what he stood for and the sacrifices made by his generation to build the nation.
The Vice-President said the exhibition will serve as a reminder and also guide present and future generations in their actions.
The Vice-Chairman of the foundation, Dr Owusu Afriyie Akoto, commended members of the general public for participating in activities to mark the celebration of the life and 25th anniversary of the death of Professor Busia. - Graphic
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"NHIS will ensure quality medical care for all"
Accra (Greater Accra) 26 August 2003 - President John Kufuor has said the passage of the National Health Insurance Bill will make it possible for all categories of people in the country to have quality medical care at all times. He assured Ghanaians that they will enjoy quality health service when the scheme is implemented.
President Kufuor was addressing a durbar of chiefs and people of the Bosomtwe-Atwima-Kwanwoma District held in his honour at Kuntenase during his maiden visit to the district since he assumed office.
Among the chiefs who attended the durbar were the Paramount Chief of Kuntanase Traditional Area, Nana Ogyeabour Barima Adu Poku, the chief of Jachie, Nana Baffour Kwaku Amoateng, the chief of Oyoko, Nana Kusi Appiah, the queen of Sawua, Nana Adwoa Konadu, and other chiefs from the area.
Also present at the durbar were the Members of Parliament for Bosomtwe and Atwima-Kwawoma constituencies, Adu Gyamfi Poku and Dr Martin Antwi, respectively.
Among the entourage of President Kufuor were the Ashanti Regional Minister, S.K. Boafo. The Minister of Roads and Highways, Dr Richard Anane, the Government Spokesman, Kwabena Agyepong, the Ashanti Regional Chairman of the NPP, F. F. Antwi and Nana Akwasi Agyemang, a former Mayor of the Kumasi metropolis.
Reacting to comments by a section of the public that the government should not deduct 2.5 per cent from contributions to the SSNIT pension scheme as seed money to fund the NHIS, President Kufuor pointed out that those against the deduction should rather have commended the NPP government for the innovation. He noted that the nation has come this far because of the contributions made by farmers, especially those who cultivate cocoa.
He said the deductions from cocoa farmers by various governments over the years have not only made it possible for the country to develop its human capacity, but has also helped in the development of infrastructure in the education, health, roads and other sectors.
President Kufuor said during his visit to Malaysia and Singapore, he learnt from his colleagues that their accelerated development that made it possible for them to join the middle-income group was the result of the loan their governments secured from their pension schemes.
He said under the Cash and Carry system, many people who could have assisted the country in its development efforts lost their lives because they could not pay for their medical bills at the time that they became incapacitated.
"Many people have suffered long enough and others have died because of the present system and it is my belief that the new scheme will bring joy to all Ghanaians," he stressed. He, therefore, urged Ghanaians to support the government in its effort to put in place a scheme that will bring quality health delivery to all.
President Kufuor also expressed concern about the numerous accidents that occur in various parts of the country claiming the lives of Ghanaians and maiming others for life.
He said while some of the accidents are the results of the bad nature of the country's road network, others are the results of indiscipline by drivers. He gave the assurance that the government is determined to improve the roads in order to reduce accidents and urged all Ghanaians to support him to make it possible for his government to deliver.
In his welcoming address, the paramount chief of Kuntanase, Nana Ogyeabour Barima Adu Gyamfi Poku, commended the government for upholding the principles of the rule of law and the respect for the fundamental human rights of Ghanaians.
He said the divergent views being expressed by the media in Ghana attest to the government's democratic credentials and its commitment to freedom of individuals and free of expression. The removal of the criminal libel law from the statute books, he said, is also a credit to the government.
Barima Adu Poku said the mass spraying of cocoa farms introduced by the government has also made it possible for cocoa farmers to increase their products and urged the government to sustain it.
He urged the government to improve the road network in the district and also establish a second cycle institution in the district capital to ensure that the youth obtain quality education. - Graphic
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Barton-Odro to contest on Cape Coast NDC ticket
Cape Coast (Central Region) 26 August 2003 - A Cape-Coast based legal practitioner, Ebo Barton-Odro, has filed his nomination to contest the primaries of the Cape Coast constituency of the National Democratic Congress (NDC).
Barton-Odro, who was the only person to have filed his nomination by the close of nominations on Friday, stated that his main goal is to win 70-80 per cent of the votes in the municipality to take the seat.
Barton-Odro, who stood on the ticket of the NDC in the 2000 elections, said it was very good that the NPP won the elections to give the people the opportunity to judge the better candidate this year. He said that he, with the members of the NDC, is doing his best to win the people to their camp.
He said after winning the parliamentary seat, his focus will be on improving education, particularly at the basic level, and working to boost tourism in the municipality. He said he will put in place basic social amenities and also work to ensure that there are good employment opportunities for the youth.
The Regional Secretary of the NDC, Light Koomson, urged the members not to be discouraged by what people say but to forge ahead in unity and educate the masses to enable them to win them to their camp.
A member of the NDC, Allotey Jacobs, said voters will be better judges of the NDC and NPP governments. Barton-Odro is a product of the University of Ghana and has been in private legal practice since 1979.
He was the Chairman of the Cape Coast Polytechnic Council, member of the board of the Holy Child, Mfantsipim and Aggrey Memorial schools. - Graphic
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Ensure security at ports - Kufuor
Accra (Greater Accra) 26 August 2003 - President John Kufuor has tasked the security agencies operating at the country's ports to be extra vigilant to stem the increasing rate of pilfering at the ports.
He said it is unacceptable for people to continue losing their goods at the ports in the presence of security agencies, adding that the practice goes a long way to undermine the government's effort at making Ghana the gateway to the sub-region.
The President made the call in a speech read on his behalf by the Minister of Finance and Economic Planning, Yaw Osafo-Maafo, at the opening of a two-day forum on port operations in the country.
It was called at the instance of the Ministry of Ports, Harbours and Railways, in collaboration with the Ministries of Finance and Economic Planning, Regional Co-operation and NEPAD, Trade, Industry and President's Special Initiatives and Private Sector Development and attended by stakeholders in the sector.
President Kufuor also expressed grave concern about the manner in which goods meant to be on transit are smuggled onto the Ghanaian market and thereby compete unfavourably with local products. He said apart from the negative effect on local industry, the country also loses a lot of revenue in the form of taxes and this cannot be allowed to go on.
President Kufuor said to ensure equity and the viable operations of private interest in the ports, the Ghana Ports and Harbours Authority will, in the short-term, stop providing operational services and focus its attention on landlord functions only. These, he said, will include ensuring port security and safety, regulating port operations and providing port maintenance and basic port infrastructure.
President Kufuor said port bottlenecks such as customs and security hold-ups impose limits on optimum utilisation of existing port capacity. "It must be realised by all concerned that little will be gained by investing heavily in port expansion and improvement programmes if these bottlenecks are not removed," he added.
He said the reliance on taxes alone at the ports is not enough to enable the country to generate the needed revenue from the sector.
President Kufuor said revenue inflow from operations of the ports should be able to fetch the returns needed to make investments in infrastructural expansion meaningful. He said the government should be seen as an investor who deserves to make maximum returns on his investments and challenged the port authorities to rise to the occasion.
President Kufuor observed that "if the rate of inland clearance and transport linkages are not improved to enhance synchronised flow of traffic through the ports to inland destinations, port congestion will increase, ship turnaround will remain unattractively high and the primary objective of the ports will not be achieved.
"We must, therefore, be conscious of the fact we have increasingly become the fulcrum of activity for our landlocked neighbours," he said, adding that "we must, therefore, do all we can to remove frustrations in their way."
"I therefore wish to use this occasion to appeal to all the agencies whose activities impact on the flow of traffic from the ports through the country's transit corridors to review their work methods in order to enhance the speedy flow of transit cargo with the aim of improving the attractiveness of our port," he added.
The President commended the sector ministry for the initiative and expressed
the hope that it will be able
to come up with workable recommendations to improve the sector.
In his welcoming address, Professor Christopher Ameyaw-Akumfi called for the collaboration of some sector ministries to consider paucity of trucks, transit fees, availability of warehouses, among others. He was happy that institutions whose activities are essential for the operations of the ports are also improving on their acts.
The ministers of the collaborating ministries also pledged their support to make the ports of the country more viable to enable Ghana to become the gateway to the sub-region. - Graphic
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Bids for Ashanti too low - says Sam Jonah
Accra (Greater Accra) 26 August 2003 - The chief executive of Ghana's Ashanti Goldfields believes the company could be worth more than the two bids currently on the table, but he told a Saturday newspaper the market would ultimately decide.
"I would like to believe that we are undervalued," Sam Jonah told the Saturday Star newspaper. "Once you are a public company, though, it is the market at the end of the day that decides your value."
South African giant AngloGold and smaller Randgold Resources are vying for control of the Ghanaian gold miner with all-share bids valuing it at $1.3bn and $1.5bn respectively by the market close on Friday. Ashanti's market capitalisation stands at $1.28bn.
"There are some other factors which would affect value," Jonah told the Saturday Star. "It is not exactly the underlying value of the assets that affect the price." Analysts say gold mining assets in Africa can be discounted compared with international plays because of the continent's political and infrastructure difficulties.
Ghana, which holds 17 per cent of Ashanti and veto rights, has called in Societe Generale as adviser on the bids. Jonah said he was reassured that "business logic will override political considerations."
A source close to the government told Reuters earlier this week the future of Ashanti's massive Obuasi mine, currently employing 9,000 people, may be more important than price in deciding on a winner.
AngloGold, the world's second biggest gold miner, has pledged to invest $700m in Obuasi, including a plan to extend its lifespan by digging thousands of metres deeper.
Investors have questioned whether Randgold, whose $600m market capitalisation is dwarfed by AngloGold's $8.2bn value, has the financial clout or operational expertise to manage Ashanti's Obuasi and other assets. London-listed Randgold has embarked on a road show to convince investors - including Ashanti's biggest shareholder Lonmin - of its case.
Platinum miner Lonmin, which holds 28 per cent of Ashanti, initially agreed to the AngloGold bid but now says it will wait for the Ghanaian miner's board to decide. Lonmin has said it would be more interested in cash than paper for its stake.
AngloGold has offered 26 of its shares for every 100 in Ashanti while Randgold has proposed one of its shares for every two Ashanti. AngloGold's stock is more liquid than Randgold's.
Jonah, the only black boss of a gold mining company, said he felt it was important for Ashanti to stay listed in Ghana after any takeover, adding that for himself, "I would prefer Ashanti to stay independent."
But at the end of the day, he added, "the mines based in Ghana contribute to its gross domestic product, so we should not worry about who owns the damn thing; it all belongs to the nation."
Ghana's government has said AngloGold agrees it would continue to hold its veto rights while Randgold has said this "golden share" is not an issue. - Ghanaweb
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Randgold defends Ashanti bid - It has expertise, cash
Obuasi (Ashanti Region) 26 August 2003 - Rangold Resources, the mid-tier gold group that plans to make an offer for Ashanti Goldfields Company Ltd (AGC) by the end of September, has defended itself in the face of weeks of stinging industry criticisms which have variously labelled its putative bid for the Ghanaian group as opportunistic, cynical, baseless and far-fetched. Randgold signalled its intention to launch a counter bid for Ashanti a fortnight ago, in an effort to trump an offer made earlier by AngloGold.
The bid would see Randgold offer one of its shares for each pair of Ashanti shares. Ashanti is twice Randgold's size. Mining analysts, who have criticised the $630m Randgold for tackling a bid of this size, have pilloried the would-be spoiler on many fronts, not least of all for what is perceived as a relatively thin management team and a lightweight balance sheet.
Many have said Randgold is hardly equipped to fund the development of Obuasi Deeps gold project, a mine that will cost more than $1bn to build.
Randgold Chief Executive, Mark Bristow, stated his case before Johannesburg journalists in what he said was an effort to set the facts straight on Randgold and its bid.
Hard-core information on the bid was in short supply because, Bristow said, the group was under starters orders. Bristow laid out his pedigree as a mining executive who had triumphed over adversity to build a well capitalised gold producer.
One of the more pointed criticisms levelled by Bristow was at AngloGold's executive management team. After listing the deep level mining experience accrued by Randgold's executives, Bristow said the group's team had more line management experience than AngloGold's executive team. And it's more balanced, he added, for good measure.
Mineweb spoke to two Johannesburg-based analysts, both of whom hold Randgold's managers in high regard. Both dismissed Bristow's statement.
Bristow also deflects the balance sheet criticism by pointing to companies far larger than Randgold that have met their end, despite chunkier borrowing capabilities and more cash than the $100m Randgold has on hand. "Everyone assumes a big balance sheet is so important, but we have seen so many companies with huge balance sheets that no longer exist. Nobody analyses that fact," said Bristow. The roasting he has received in the press has clearly touched a nerve.
At any rate, he says the $1bn development bill touted for Obuasi, a figure AngloGold could clearly manage with more comfort, is misleading, in that it will be spent over the life of the mine. Bristow says $200m will be needed in the first two to three years, followed by $500m in phased capital investment and $500m in working capital over the 25 year life of the mine.
The current barrage of criticisms is clearly nothing new to Bristow, who says he has faced similar criticism over the past decade as he first created Randgold and Exploration from the old Rand Mines stable. Randgold, then a catch-all for South Africa's marginal gold producers, birthed both Harmony Gold and Durban Roodepoort Deep.
"We created multiple lease mining companies, we took them to Nasdaq, listed them, profiled them and now Harmony is the fourth largest gold producer in the world. "When we started out, everyone said we could not do it, that we didn't have the management expertise. We present this to you today and say, we have done it", said Bristow.
He added that he had then decided to create Randgold Resources, a company with no assets, no cash flow and no money, which was to operate outside South Africa. The group, impeded by exchange control regulations, placed 10 per cent of its private equity to London investors to raise $10m.
It followed that effort up in short order with a $48 million bond issue, which was to form the cash component of a $100 million bid to buy BHP's African gold properties and to purchase the ill-fated Syama gold mine in Mali. In the BHP purchase lurked the company-making Morila deposit.
Bristow then listed Randgold Resources on the London Stock Exchange in 1997, raising $83m, only months before the Bre-X gold mining fraud all but destroyed the market for gold shares. It was then that things started going wrong for Randgold; the gold price tanked, Syama started racking up the first in an endless string of losses, pulling Randgold into the red.
The group was in bad shape, with losses of $100m and no cashflow. The share headed south. The BHP purchase would now prove its worth after Randgold's exploration geologists continued work based on old BHP geological data to unearth the monster deposit at Morilla.
Bristow says no investors would take Randgold paper to fund Morilla and majors wanted control in order to fund the feasibility study. He refused, opting instead to raise another $100m debt on a radioactive balance sheet to fund the project development. "We discovered it, we financed it and we commissioned it," says Bristow.
The statement is a response to stinging criticism he has received from senior industry players, most of them anonymous, who say Morila was a fluke, fortuitously plucked from a pack of BHP's discards. It is also Bristow's answer to sniping that he has copped for Randgold's supposed inability to fund Morilla, and hang on to 100 per cent of the asset.
The truth of just who is responsible tying up Morila, is a little murky, however. While Morila was in development stage, the restructuring of the larger Kebble-controlled JCI group, to which Randgold is inextricably linked, collapsed. Bristow said debt-ridden Randgold ($200m in debt) was confronted by nervous banks, which forced the sale of half of the Malian bonanza find.
It was here that AngloGold swooped. For $132m in cash and $50m in project debt (and co-operative management conditions and veto rights), AngloGold picked up half of Morila in 2000, beating Placer Dome [PDG] by very little after the Canadian major revised an earlier offer downward.
It would prove to be one of a pair of very smart African deals AngloGold would do in quick succession to bail out owners, under pressure from skittish lenders. The other, ironically, was the purchase of a half share in Ashanti's rich Geita mine in Tanzania after the Ghanaians were taken to the cleaners by hedge counter parties.
At a stroke, Randgold cleaned up its balance sheet, paid an $81m dividend and started reaping the rewards from Morilla. The group is now debt free, has $100m in cash and is looking to do a deal. Ashanti is it.
Bristow is careful not to compare the bids pound for pound, not least of all because Randgold has yet to make a formal offer. They are different bids, he says, although he added later that Randgold's approach was really a hugely conditional proposal.
In fact, it's so conditional, it's not even valid yet, says Bristow. Randgold is currently completing a reciprocal due diligence of Ashanti and will only table a bid, he says, if certain conditions are met. He wouldn't say what they are.
There is of course the question of Lonmin's 26.7 per cent stake in Ashanti. Lonmin has already accepted AngloGold's offer and chairman John Craven has told Bloomberg (twice) that he will not accept Randgold paper. Bristow does not appear to have a straight answer to how he'll snag more than a quarter of the company.
"We are mindful of the various shareholder requirements as we prepare our case", he said. One of the approaches Bristow says Randgold will take, is to persuade the leavers, as he calls the shareholders looking to exit Ashanti, that Randgold scrip is valuable and fair payment.
Bristow also trades heavily on the fact that Ashanti shareholders will get 70 per cent of the upside from Ashant's assets if they accept a Randgold offer and only 13 per cent if they accept AngloGold's bid. The argument is a difficult one to follow, given that the absolute returns for individual shareholders are unlikely to differ, assuming both bidders have equal success in bringing Ashanti's assets to account.
NEPAD, the South African designed plan to stimulate the African economic renaissance, is also prominent in Bristow's sales talk. He speaks at length about the creation of an African gold producer, a title AngloGold could easily lay equal, if not greater claim, to given its extensive African operational base and South African domicile.
Ironically, Bristow says the Randgoldís London domicile is a more attractive home for gold's great new African hope, given that Randgold would be the only gold producer in the FTSE 250 slotting in at number 135.
Bristow's defence is moot, however, until Randgold throws its hat in the ring. However, arbitrageurs seem to be siding with him for now as Randgold's stock continues to appreciate while AngloGold's has lagged. The result is a return to a $219m premium in the Randgold bid, or $1.65 per Ashanti share. That will be hard to turn down irrespective of the "issues". - Mineweb
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Accra (Greater Accra) 26 August 2003 - The country's non-traditional export sector has witnessed another addition with the introduction of a comprehensive legal database of Ghanaian statutes for export and domestic use.
So far, there have been exports to universities in the United States and the United Kingdom, while several local banks are also using the products. Data Centa is an electronic (online and CD-Rom) compilation of all Ghana's legal publications, including the country's statutes, law journals and law reports, into a central database.
The project, an initiative of Bentsi-Enchill and Letsa, legal practitioners, began some 11 years ago in computerising the whole publishing body of Ghana's legal materials.
"They are in bits and pieces, but our team has put them together to
allow for easy research and reference", Kojo Bentsi-Enchill, a partner of
the law firm which is undertaking the project, said in an interview in Accra.
The centre is relevant to the business and investor community, government
machinery, researchers, students and, indeed, the rest of the citizenry.
Over $250,000 has been sunk into the about 80,000-page project, which is about 99 per cent complete. What is left is for some Executive Instruments to be entered. This is the first time since 1955 that anybody has completely compiled the statutes of Ghana.
Explaining how the compilation works Bentsi-Enchil said, for example, that if you are looking at Exchange Control Act at the database, there will be no need to get all the many bits of legislation, as every amendment has been merged into one consolidated statute.
Bentsi-Enchill said they have set for themselves the objective of updating their database quarterly and this has been achieved this year. They acquired an electronic publishing license from copyright owners of the legal materials to publish them electronically.
"For the Ghana Law Reporting, we get a license from the Council for Law Reporting and for the Statutes, we are trying to finalise a contract with the government. At the moment, we secure an ad-hoc permission for each sale of a database of statute," he stated. He conceded that the project is so huge and expensive that they cannot afford to be careless about copyright license.
However, he was not happy about the rates of copyright license and royalties that are being demanded because they are far above international standards. Throwing light on how the project was executed, Bentsi-Enchill said editors analyse the revocations, repeals and amendments, secretaries type every single letter, it is proof-read about seven times before being fed into the database.
He explained that this rigorous method is followed to ensure accuracy, which is a vital ingredient for the project. "If we did not have the passion and desire to contribute to the legal system and the profession, we would have given up long ago, because we are not yet profitable," Bentsi-Enchill pointed out.
He paid glowing tribute to his team and partners, D.K.D. Letsa and Ace Anan Ankomah, whose patience and loyalty he said have contributed immensely to the success of the project. "Broadly speaking, we have received encouragement and some admiration and respect from government and other relevant bodies. However, we do not think our environment and laws are helpful to indigenous entrepreneurs".
There are areas, however, where a lot more encouragement was needed, but he quickly pointed out that "a better communication with the copyright owners could have created more harmony and trust". - Graphic
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Minority rubbishes SSNIT's statement
Accra (Greater Accra) 26 August 2003 - The NDC Minority in Parliament has said the statement by the Director General of SSNIT that the proposed transfer of 2.5% contribution to the national health insurance scheme would not affect pension benefits, was extracted "under duress" and was calculated to throw dust into the eyes of workers.
The Minority recalled that it was the same Director General who briefed the house joint committee on health and finance at a workshop at Swedru and stated that actuarial studies had revealed that the deduction of the 2.5% of workers' pension contribution to the to the health insurance scheme would reduce the viability of the fund from 50 years to 25 years.
"Clearly since Swedru and now, the Director General has come under pressure to come out to support Government's appropriation of workers pension contribution", the Minority said in a comment on the SSNIT statement issued at the weekend. Minority Spokesman on Finance, Moses Asaga said it is clear from the SSNIT statement that workers pension benefits will be affected by the deduction.
He also said government indecent faith to pass the bill is to meet a deadline with the international monetary fund (IMF).
He said: "An IMF/ World Bank delegation is expected in the country in September to appraise Ghana's progress under the Ghana poverty reduction strategy and the 2.5% vat contained in the Insurance Bill is one of the conditionalities Ghana must meet to qualify for the release of fund under the poverty reduction growth facility (PRGS).
"Government is therefore willing to sacrifice the required due diligence of putting in place an efficient NHIS on the alter of meeting IMF/World bank conditionalities."
The minority predicted that if government goes ahead and forces through the NHIS it would create chaos in the health sector and jeopardize further access of ordinary Ghanaians to quality healthcare.
Asaga noted that the SSNIT statement admits on page three that the viability of SSNIT will be severely affected by the 2.5% deduction if a comprehensive review of the basic design of the SSNIT Scheme is not carried out.
He explained that the management of SSNIT in a presentation to the joint parliamentary committee last month indicated that the solvency of SSNIT would reduce from 50 years to 20 years. This position, he said, cannot change overnight as a result from the executive.
He said the current SSNIT assets to liability ratio of 35% which the minister quoted implies that liabilities of the SSNIT fund exceeds the assets which is true for most social security schemes all over the world.
He further said that removing 2.5 of 17.5 percent of contribution to support the national health insurance scheme will further widen the gap and therefore the assets to liability ratio will rather decrease and not increase to 47% as declared by the minister assuming everything remains constant.
Asaga said the ministry of finance is prescribing risk free but high yield on investments but by government policies interest rates are supposed to be reduced to 20-25% to reduce cost of borrowing. By that token it means that yields on SSNIT investment in treasury bills will decrease from a previous high rate of 36% to 20% meaning that government policy on interest rates is at variance to the investment policy of SSNIT.
He questioned how administrative cost could be reduced when it is a market value cost. Is SSNIT going to reduce staff benefits on health or reduce cost? Or are they going to reduce the cost of fuel, which was increased by 95%and captured in the 2003 budget.
The minority spokesman said inflation is currently 29% with prices of goods and services reflecting the inflationary position. Another 2.5% increase in vat will send VAT to 15%, which will escalate prices by 20%. How then will SSNIT reduce administrative costs?
He called on SSNIT management to come out and demonstrate to Ghanaians the new ways and prudent investments that they have discovered and which did not exist previously and also how the new investment portfolio is going to look like for a rate of return of investment about 8% as quoted by the deputy minister.
He said it is unfortunate that SSNIT has become an unwilling accomplice to this gross disservice to the people of Ghana. - Chronicle
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Dagbon crisis is manageable - JAK
Kumasi (Ashanti Region) 26 August 2003 - President John Kufuor has assured Ghanaians that the government is on track in resolving the Dagbon crisis. The President told newsmen in Kumasi yesterday ahead of a working tour of the Metropolis that some eminent and respected chiefs have been detailed to mediate in the dispute and it would need the co-operation of all parties. He pointed out that the problem persists because effort at restoring peace is not getting the needed co-operation of the interested parties.
President Kufuor observed that but for the resolve of some groups of persons to frustrate the government, peace would have been restored by now but assured the nation that all opportunities would be explored to achieve peace.
"There seems to be some group of persons not wanting the government to score any mark in settling the dispute" he said. He attributed the success of ECOWAS in restoring peace in Liberia partly to the fact that the people were willing to see that happen.
On the funding of the National Health Insurance scheme (NHIS), the President said the government is not taking the 2½% from workers' contributions directly but rather accessing the money from SSNIT as managers of the fund.
Meanwhile, the Moslem community in Kumasi has expressed appreciation for strategies adopted by the government in resolving the Dagbon crisis.
Interacting with the Chief Imam and members of the community, the President pledged his commitment to peace and unity and said everything would be done to maintain peaceful co-existence among all the people. - Chronicle
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