KMA records a decline in revenue collection

The Metropolitan Chief Executive of Kumasi, Kojo Bonsu, has expressed worry over the decline in performance of the Kumasi Metropolitan Assembly (KMA) in revenue collection over the past three years.

The revenue collection of the Assembly, according to available records, has been waning from 2009 to 2012 for which reason the new KMA Boss has called for a critical look at the situation.

He has proposed a ‘new direction’ to be given to revenue collection of the Assembly in order to generate more revenue to develop the Metropolis. He further called for a review of the percentage of monies given to agencies outsourced to collect revenue in the Assembly. Only about 30% of revenue generated in the Metropolis goes to the Assembly whiles the remaining 70% goes to revenue mobilization agencies that have been subcontracted to do the collection.

He said that the Assembly cannot continue to rely on the central government alone for funds to develop, and therefore would be introducing strategies and block all loopholes in the system to beef up revenue collection drive of the Assembly.

Meanwhile, the KMA is revealed to have been allocated a US$ 4 million Capacity Support Fund (CSF) to engage consultants to support the Assembly to improve it management capabilities in some areas of Public Financial Management.

The Fund, said to be part of the Urban Development Grant (UDG,) falls under the Local Government Capacity Support Project (LGCSP) which aims to assist urban local governments to strengthen their managerial competence in Public Financial Management.

The Assembly is also indicated to be in the process of signing a Memorandum of Understanding (MOU) with the Regional Technical Advisory Team (RTAT) who is facilitating the implementation of the project.

These were captured as part of programmes earmarked for implementation at the median sessional address of the KMA Chief Executive in Kumasi.

Among the major highlights of his address, Kojo Bonsu pledged to deepen the rebranding process of the Kumasi Metropolis competitive with international cities like Johannesburg, Boston and London, and called for the support of all stakeholders to realize this objective.

He hinted to be organizing an international conference to showcase the business potential of Kumasi, and through which build a 2000 seater capacity conference center as part of the process.

The Kumasi Airport which has witnessed some frequent closure over the past years is also said to be given a mojor facelift as well as the creation of an Airport City all in anticipation to increase the revenue base of the Metropolis as well as the Region.

Prominent among the list of programmes said to be pursued, is the installation of Closed Circuit Television (CCTV) cameras in the Central Business District (CBD) of the Kumasi Metropolis to monitor and track criminal activities in the commercial areas and other flashpoints areas in the Metropolis.

In addition to this, he indicated to seek support from donor agencies and philanthropist to procure vehicles and other combat gears for the Police in the Region to fight crime.   

Apex Bank drops interest rates on loans to RCB’s

Rural and Community Banks (RCB’s) in the country have been urged to take advantage of the 5% reduction in the interest rates on borrowings from the ARB Apex Bank to access more facilities from Apex for on-lending to deserving borrowers.

This call comes at the time ARB Apex Bank is said to have reduced the interest rates on borrowings to RCB’s from 20% and above to 15% to equal the Bank of Ghana policy rate.

The BoG policy rate at the moment remains at 15% but highly anticipated to be reviewed by close of the second quarter. While the outcome of the review cannot be confirmed at the moment, indications from some expert opinions suggest that the Bank of Ghana may increase its Policy Rate by 100 basepoints. 

Mr. Kwadwo Aye Kusi, Managing Director, ARB Apex Bank Limited in a speech read on his behalf at the 23^rd Annual General Meeting of shareholders of Adansi Rural Bank at Fomena-Adansi in the Ashanti Region noted the improvement in the performance of the Bank over the years.

He commended the Board and Management of Adansi Rural Bank for their visionary and transformational leadership which had culminated to into the gains made, and prevailed on them to consolidate the gains to serve as a motivation ‘to achieve more laurels in future’.

He prevailed on RCB’s to do more to transform their organization and operations particularly in the areas of information communication technology (ICT), effective deposit mobilization, cost control and reduction.

The Managing Director further advised for pragmatic and realistic programmes and policies to be put in place to sustain their operations.

Speaking on risk management, he noted that banking business has become very competitive and risky, and to minimize the risk, there is the need for effective risk management. Mr. Kusi therefore advised the boards of RCB’s to institute a risk management policy to identify, assess, monitor and control risks.

‘’The need for effective risk management and vigilance have become more pressing in view of the technological intervention in the operations of RCBs. Staff of RCBs are required to be extra vigilant and careful in their day-to-day operations to prevent unscrupulous fraudsters who may want to defraud RCBs by capitalizing on the lack of vigilance, poor risk management, weak internal control system and non-observation of the rules of the business,’’ he added.

RCB’s were also pointed out to improve customer services attract more customers whiles retaining existing ones as a ‘sure way’ to ensure survival in the face of increased competition.

The initiative by ARB Apex Bank to waive off the commission on Western Union Money Transfer, which took effect from April 1, 2013, to allow RCB’s to fully enjoy the commission on remittance was also reiterated. 

Striking pharmacists warn against intimidation

Striking Government and hospital pharmacists have served notice they will not to tolerate any act of intimidation against them by heads and management of teaching hospitals in the country.

They have contended to resist any attempt to sabotage the welfare of pharmacists, and also resolved to remain on strike till their grievances which led to the strike action are duly resolved.

‘We are on strike because of impunity on the part of FWSC. We are on strike because we demand justice, we demand fairness; we demand the orders of NLC after a painful two-year process be respected and complied with, or we remain steadfast and prepared for anything.

The Government and hospital pharmacists have been on strike over their market premium, and the ‘refusal’ of the Fair Wages and Salaries Commission (FWSC) to abide by the ruling of the National Labour Commission (NLC) on their salary disparities under the new salary structure.

The Ashanti Regional representatives of the Government and Hospital Pharmacist Association (GHOSPA), in a press conference at Kumasi, said they are not returning to work until pharmacists are placed on their appropriate salary levels -- and that Government should be held accountable for any unhealthy outcome of their strike action.

They expressed worry about ‘Government’s decision to set aside’ the ruling of the NLC and rather rely on a newly-formed committee to resolve the issue -- and further expressed misgivings about the Committee. 

The Committee was said not to be a Cabinet sub-committee as earlier proposed by the Health Minister and the Chief of Staff, and that its statutory mandate is unknown to GHOSPA. Again, they questioned the legal effect of the outcome from the Committee’s deliberations, and implications of its outcome on constitutionally mandated bodies like the NLC.

The Pharmacists indicated that they are aware of the huge revenue losses being incurred by health facilities as they remain on strike, and attempts by managers of some health facilities to ‘coerce’ their members to work will be firmly resisted.

They found it strange that the NLC to date is unwilling to activate Section 172 of the Labour Act, which they recently invoked to enforce a ruling against doctors for a decision they made on 10th April 2013.

Franklin Cudjoe drops boom shell on Ghana's $ 3 billion Chinese loan

A founding member and President of IMANI Ghana, Franklin Cudjoe, has made some damning revelations on the $ 3 billion Chinese loan contracted by the Atta Mills led administration in 2011.

The loan agreement which was signed between the Government of Ghana and the China Development Bank (CDB) raised a lot of concern across the Ghanaian public prior to the final approval of Parliament.

The Government of Ghana however proceeded to pursue the loan with little or no regard to the issues which were raised by the minority groups in Parliament, and some leading civil society groups like IMANI Ghana which appeared to have been resourced with information on the agreement. 

The then Vice President John Mahama who signed the agreement in China on behalf of the Government, was highly optimistic that the signing and subsequent disbursement of $ 1 billion would boost the Ghanaian economy.

Several months after going back and forth on the loan agreement, Ghana is yet to fully benefit from the this loan facility which has prompted a lot heated debate between Government and some civil societies groups, considered as doubting Thomas'.

It stem from these concern and interest that some revelations have been made by Franklin Cudjoe on his facebook page.

According to Franklin Cudjoe of IMANI......

''Facts from China:

1. The Chinese Government is NOT party to the $3BN loan from the CDB
2. The Chinese Development Bank is a COMMERCIAL BANK not an appendage of Chinese Government
3. The Ghanaian Government is SOLELY responsible for the delay in the release of funds
4. The Ghanaian Government has retreated twice on the amended contract
5. The Ghanaian Goverment [sic] is demonstrating to the CDB that they don't need the money. They can get money from Turkey, Europe, US and more.
6. There is more, but when I return from "China"...............''

refer to the link :https://www.facebook.com/permalink.php?story_fbid=465423420211370&id=118899274863788

Culture and heritage for development

The Governor General and Commander-In-Chief of Canada, Mr. David Johnston who was in the country for a visit has urged the institution of chieftaincy to use culture and heritage to develop the country.

He noted that culture played a critical role in the affairs of the country and that with the credence accorded it, numerous achievements could be made through its preservation and conservation.

Mr. Johnston made the pronouncement at a grand durbar held in his honour at the Manhyia Palace in Kumasi in the Ashanti Region where he was hosted by the Asantehene, Otumfuo Osei Tutu II.

He admired the rich Ghanaian culture and emphasized the need for development also through education, particularly, in the area of science and technology, adding that Canada was ready to assist developing the Kumasi Metropolis, the Ashanti Region through science and technology.

He pledged the support of Canada to work closely with Ghana through the Manhyia Palace in transforming the living conditions of the people.

He asked the Kwame Nkrumah University of Science and Technology (KNUST) to open up for more science-based research works and development programmes through partnership and exchange programmes with the Canadian education community.

Mr Johnston who was in the Manhyia Palace with his wife, Mrs Sharon Johnston and his entourage praised the Palace for the warm reception accorded him and expressed the wish that the relationship between Ghana and Canada never elapsed.

He praised the former Secretary General of the United Nations, Mr. Kofi Annan, a native of Ghana for his meritorious work whilst in office and his quest for lasting peace and democracy on the African sub-region even as he retired from his post.

Nana Otuo Serebuo II, Juabenmanhene, on behalf of the Asantehene stated that the occasion has afforded both countries the opportunity to place on record profound gratitude for immeasurable benefits that the Manhyia Palace had derived from relations with Canada.

He said for the past 14 years reign of the Asantehene, Otumfuo Osei Tutu II, education has remained a key priority, and has hugely benefited countless number of less privileged people in society.

The establishments of the Otumfuo Education Fund and Charity Foundation have provided support to  many people from the basic schools to the universities with many in key professions including the bench.

He on behalf of the KNUST, he pledged the readiness to either join the Masstrich-McMaster programme or to partner with any of the Canadian universities in developing a similar programme.

He decried the situation where more than 60 per cent of the country’s forest cover had been lost in less than three decades with rivers dying by the day and expressed the belief that Canada’s expertise in the preservation of its environment and commitment to preserve the global environment showed that the sharing of knowledge could also enable Ghana, particularly, the Kumasi Metropolis overcome the environmental threat.

As part of the activities of the durbar, the Asantehene presented rich Kente cloth to Mr David Johnston who was decorated with it at that instance. Mr Johnston in return also presented gifts to the Asantehene, Manhyia and the entire Asanteman for a long-lasting friendship.

Present were the Minister of Interior, Mr Kwesi Ahwoi; the Ashanti Regional Minister, Mr Eric Opoku; the Kumasi Metropolitan Chief Executive, Kojo Bonsu, some Municipal and District Chief Executies in the Ashanti Region and governmental officials.

Road Fund has debt of GH₵ 290.17 million

The Ghana Road Fund said to be in debt of GH₵ 290.17 million in spite of some significant gains made within the last 12 years.

This figure includes a loan amount of GH₵ 84.107 million contracted from SSNIT which is yet to be settled, and other monies owed to road contractors for work done over the years.

The Fund was able to realize a total amount of GH₵ 264.06 million from its various revenue sources in the year 2012. This relative significant adjustment has been attributed to the increases in road and bridge tolls, vehicle registration fees, and road user fees among others.

Managers of the Fund have targeted to collect an amount of GH₵303.67 million as revenue for this year, 2013, to enable it to meet part of the road maintenance budget of the Agencies which subsist on the Fund to undertake their maintenance programmes and activities.

One major concern that has however been expressed is that, the current capacity of the Fund is estimated to meet only about 60% of the road maintenance needs of the country.

This was revealed at a ‘Public Forum’ organized by the Ghana Road Fund Board in attendance by some members of the Parliamentary Select Committee on Roads, in Kumasi, to deliberate on financing road maintenance in the country.

The Deputy Minister of Roads and Highways maintains that, as a result of the inability of the Fund to fully cover the road maintenance needs of the country, the 40% financing deficit would mean a continuous increase in the payments certificate for work done by road contractors and the road maintenance requirements of Assemblies.

This further implies that, about 40% of road networks would be left unattended to in the year for which the cumulative effect over a period of time is projected to be very high.

It is against this background that the government is said to be considering recommendations by the Roads and Highways Ministry to make the Fund more responsive to road maintenance needs.

In addition to this, government’s initiative of exploring other financial methods such as the long term pre-financing to carry out road maintenance was said to be on cause.

The government, among other ‘explore-able’ options of funding is said to be seriously considering some concepts of Public Private Partnership (PPP) arrangements revealed as the Build, Operate and Transfer (BOT) and Maintain, Operate and Transfer (MOT).

The Fund, beginning from 2000 to 2010 accrued total revenue of about GH₵ 1.474 billion according to the Deputy Minister for Roads and Highways, Isaac Adjei Mensah.

In the year 2000, the Fund was indicated to have made an impressive gain recording GH₵ 28.4 million, and GH₵ 35.8 million in 2001 as revenue. These upward adjustments are noted to have consistently continued to 2012. 

The Deputy Minister urged the Board to discuss and submit proposal to generate more revenue into the Road Fund, and asked for the consideration of a levy to be placed on liquefied petroleum gas (LPG) which is currently being heavily used as fuel for road transportation.

Samuel Yaw Edusei, the Deputy Ashanti Regional Minister alluded to the need to identify and come out with strategies to solve to the challenges confronting the overall success of the Fund notwithstanding the huge improvement that has been recorded in country’s road networks.

He was therefore optimistic that, the opinions expressed at the Forum would go a long way to help draw up a sustainable approach to financing road maintenance as a means of working towards the realization of the objectives for which the Fund was instituted.  

Stable energy supply for industries in Ashanti, B/A -- Eric Opoku assures

The Ashanti Regional Minister, Eric Opoku, has assured industries in the Ashanti and Brong Ahafo Regions of regular and stable power supply on completion of ongoing expansion and rehabilitation works being carried out by the Electricity Company of Ghana (ECG) and the Ghana Grid Company (GRIDCo) in the two Regions.

He however dispelled claims that industries in the two regions are deliberately being made to suffer through the frequent power outages at the expense of their counterparts in other regions.

Mr. Opoku explained that the current state of power supply being experienced in the Ashanti Region in particular is a result of the expansion and rehabilitation works being undertaken by the ECG and GRIDCo -- including the construction of a second Bulk Supply Point (BSP), reinforcement of existing networks among many other things to improve power-supply in the Region.

The Minister observed that power apart from being an important factor is also an essential part of a successful strategy necessary to ensure accelerated, shared and sustainable growth, and noted that the need to ensure constant and quality supply of power to manufacturing industries and companies to boost productivity in the country must therefore be a concern to all well-meaning Ghanaians and businesses in particular.

He said the Ashanti and Brong Ahafo Regions, regarded as a major industrial hub of the country, contributes significantly toward the social and economic transformation processes of the country.

“Apart from serving as a source of revenue to Government through taxes, the industries and businesses, among other benefits, provides employment for many Ghanaians,” he noted.

He was of the view that the Private Sector as the engine of growth of developing countries, if it is to play its role meaningfully, must be provided with an enabling environment to increase its output. He therefore pointed out to the AGI, as a major stakeholder partnering Government in the development of businesses, to collaborate more with Government and other stakeholders in the country to ensure uninterrupted operation for its members.

The assurance comes at the back of concerns raised by the Association of Ghana Industries (AGI) on the effects of incessant power outages being experienced in the two Regions on industries and businesses, despite recent indications given by the President, H.E. John Mahama that the disruptions would considerably be reduced.

Mr. William Awuku Ahiadormey, Vice Chairman of AGI for Ashanti and Brong Ahafo, at a luncheon in Kumasi to find lasting solutions to minimise the effects of the power outages on industries and businesses in the two Regions, appealed for a fair share of utility supply and other resources needed to make the Regions competitive.

He noted the AGI has observed that even after the two Regions had gone through frequent power outages during the peak of the load-shedding exercise, they still continue to suffer prolonged power outages irrespective of the recent announcement of reduction in the exercise.

It was therefore against this background that the key stakeholders in power generation and supply were brought together by the AGI to offer some explanations, and together come out with solutions to mitigate the effects that the current situation is having on businesses and industries in the two Regions.

Officials from the ECG and GRIDCo who were present for the deliberations took turns to highlight the challenges they face in their operations. They gave an overview of ongoing activities and plans to augment the current volume of power being supplied to the Region.

In a related development, the Regional Minister appealed to the Association of Ghana Industries (AGI) to sensitise some its members ahead of Government’s plans to reconstruct some major markets in the Ashanti Region.

He announced that the Government of Ghana has secured funding from some development partners to reconstruct the Kumasi Central Market and as well construct three modern markets in the region.

By Kizito CUDJOE, Kumasi

Owere Mines lays-off 330 workers

About 330 employees of the Owere Mines Limited (OML) have been laid-off as part of measures by management of the company to temporarily suspend operations, while placing the company on ''care and maintenance', B&FT has learnt.

The affected workers, who are all junior staff employees of the company, have been served with redundancy letters which took effect from 31st of March this year. Some senior staff workers, including some in managerial positions, have been revealed to also follow suit in due time.
 The ongoing retrenchment exercise is said to leave behind only less than 100 workers out of the total of about 482 employees, including casual workers, to carry on with the company’s shift in strategy.

This latest development is said to pave the way for OML's major shareholding company, Signature Metals Limited -- an Australia-based outfit that has taken over management of the company -- to proceed with a technical ‘life of mine’ study to accelerate assessment of the Konongo Gold Project’s underground mining potential.

According to Mr. Seth Brantuo, the Mine Manager of OML, the company for some time now has not been making any meaningful profit and has had to largely depend on a monthly financial support of about US$1.6million from its parent company in Singapore, Lions Gold, to run operations.

He recounted the huge operational expenditure the company was confronted with practically as a result of inability to realise the full benefits of its current mining operations -- due to the type of rock deposits within their concession, and the 'limited capacity' of their plant.  These have been a major source of worry, and are among the core reasons for their resolve to lay-off some of the current workforce while implementing the necessary structures to comprehensively deal with the situation.

The temporary closure is anticipated to last for about 24 months, within which a projected sum of about US$18million will be reinvested into the operations of the company. In addition to this sum, a biox plant (new) estimated at a cost of US$120million is expected to be purchased and installed to boost operations of the Company.

Owere Mines Limited is a Ghanaian/Australian-owned mining company that started its full operations in 2009 at the Asante Akyem North Municipality of the Ashanti Region. Over the few years of its operations in the region, the company has undertaken a number of corporate social responsibility initiatives to better the lives of the people in the host community, as well as other institutions and organisations outside the company’s catchment areas.

Despite the current challenges, the company has pledged to continue rendering its support to the various communities and institutions on its CSR scheme.

By Kizito CUDJOE, Konongo