AGA losses Communications Director, Mr. John Owusu

late Mr. John Owusu

The Communications Director of AngloGold Ashanti (AGA), Mr. John Owusu, is reported to have passed on after being run over by an official vehicle in what appeared to be near confrontation with some galamsey operators, at a visit to one of the Mines concessions which they are illegally occupying, in Obuasi.

Mr. Owusu, who was part of a team who went to inspect and halt illegal mining operations on the Company’s land last Saturday, met his untimely death after being run over when a driver one of the Company vehicles they had traveled to the site tried to reposition the vehicle when the illegal miners were reported to have advanced on the team.

He was said to have become unconscious and was rushed to Mines Hospital but was pronounced dead moments after being attended to.  

The Communications Director, had been with AGA for about 20 years, and was a product of the University of Ghana, and worked for both Ghanaian Times and the Daily Graphic before joining AngloGold somewhere in 1996.

The late John Owusu has been described by many journalists in Obuasi and Kumasi, in particular, as someone who was approachable, had good human relations and also seen as very media-friendly.

No law forbids market centers from being insured but …

The perennial market fires in Kumasi and Accra and other parts of the country has always ignited the debate on the reluctance of insurance firms to insure marketers, but the Kumasi Area Manager of the National Insurance Commission, Mr. Evans Osei Bediako, maintains that the poor state of most market centers is to blame for the situation.

He said there is no insurance regulation that prevents insurance companies from insuring traders and their wares. However, he explained that insurance is a risk management activity, requiring insurers to access the risk anyone brings to the ‘pool for insurance purposes.’

He mentioned that there are two forms of risk; standard and substandard risk, associated with issuing insurance, and said this informs the operations of insurance firms.

He observed that although no law bars markets from being insured, the risk associated with most public trading centers is very huge – substandard, and is what discourages insurance companies from moving into that area.  

“The risk that our markets have is quiet substandard; they lack access routes for emergency situation, absence of fire fighting gadgets, dilapidated structures, and faulty wiring system and others, making them highly risky,” he stated.

He feared that if insurance companies go into this area they might record huge loses yearly given the prevailing conditions at most market centers.

He reckoned that the situation is not encouraging that notwithstanding the regulator cannot force any insurance company to do what they do not want to do so long as it does not contravene any insurance laws of the country.

He was however optimistic that insurance firms would find doing business with traders more convenient when market centers are modernized to have access roads and installed fire fighting measures.

Mr. Osei Bediako made these remarks in an exclusive interview in the wake of the recent fire outbreak at the Kumasi Central Market, which is estimated to have destroyed over 400 shops and caused massive damages to thousands of foodstuff and wares worth several millions of Ghana cedis.

Some of the items and foodstuff destroyed in this latest inferno, which is believed to be the biggest fire outbreak so far, given the extent of damage includes yam, smoked fish, jewelleries and other food ingredients.

So far it is unclear what might have caused the fire at the section of the Central Market known as Bode a popular spot for yam sellers.

BoG urges RCBs to pay attention to good corporate governance

The Bank of Ghana has asked rural and community banks (RCBs) to put in place corporate governance and effective risk management best practices that would help banks to clearly identify, measure, control and mitigate the risks associated with their operations.

It observed that good corporate governance and risk management systems lie in the heart of any successful business, and further advised that RCBs adopt adequate measures to deal with the challenges of operational and credit risks often associated which come along with their operations.

Head of Other Financial Institutions Supervision, Bank of Ghana, Mr. Raymond Amanfu, made these remarks at the Annual General Meeting (AGM) of the shareholders Atwima Mponua Rural Bank, at Toase.

He said RCBs should give serious consideration to human capital as part of their attempts to grow their banks.

He insisted that RCBs should endeavor to appoint competent and reliable persons of high integrity to manage their institutions, and also deal with the issues of unethical banking practices promptly and appropriately.

He indicated that the BoG does not countenance such practices. “We require due diligence be carried out on all prospective RCB staff before they are employed.”

Mr. Amanful said impact of the rural banking industry continues to be felt in the economy. He noted that after four decades of their operations, RCBs, the sector has revolved significantly to respond to phenomenal challenges posed by the changing dynamics of the industry among other actors.

It is important to note that the total assets of rural and community banks (RCBs) grew from a year-on-year total figure of GH₵1.8 billion in October, 2014, to GH₵2.40 billion in October, 2015, marking a 17.8 percent increase.

This noteworthy performance of RCBs accounted for 3.4 percent of the total assets of the banking industry of GH₵70.39 billion in October 2015.

The total assets of RCBs were funded mainly by deposits, 76.22 percent, borrowings and other liabilities, 10.36 percent, and reserves 9.45 percent.

Notwithstanding the steady performance recorded by the RCB sub sector, the BoG expressed concern of some major lapses that continue to occur in the operations of RCBs despite several initiatives taken to address them.

It said it will ensure that all licensed institutions operates within the rules and laws governing their operations, and not tolerate any violations of laws as offenders would be appropriately sanctioned.   

This warning comes at the back of the knowledge that some RCBs have been operating agencies in the urban centers without the BoG’s approval.

The Central Bank noted that these agencies are mostly established without due consideration of the financial and supervisory capabilities of the RCBs which often leads to use of depositors’ funds with its attendant effects of flouting prudential requirements.