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Uneducated citizenry is like a pitch any game can be played on it. Illiteracy is what has given the politicians in Ghana the chance to fool so many people for so a long a time.

Showing posts with label bank of ghana. Show all posts
Showing posts with label bank of ghana. Show all posts

Saturday, April 10, 2010

Ya-Na’s murder: 30 arrested

 
Ya-Na Yakubu Andani II
Ya-Na Yakubu Andani II
 
  
 
About 30 persons, including the caretaker of the Abudu gate, have been arrested in connection with the 2002 murder of the Overlord of Dagbon, late Ya-Na Yakubu Andani II, in Yendi.

A military cum national security contingent from Accra picked them up in a swoop conducted on Saturday dawn. The arrests have received mixed reactions depending on which faction one belongs. Whilst the Andanis have welcomed the move, the Abudus have greeted the action with disquiet.

Some youth in protest of the arrest, this morning, burnt car tyres, but Joy News’ correspondent, Mahama Shaibu, says calm has returned to the area with some brisk business going on.

“[The security agencies] have taken over the town centre and the whole of Yendi is calm,” he said.

Unconfirmed report also suggests that a former minister under the NPP administration, Prince Imoro Andani, was among those arrested. Our correspondent says a former NPP vice-chairman in the Yendi constituency, and a former NADMO co-ordinator in the NPP regime have also been picked up.

The children of the late Ya-Na Yakubu Andani II, last week Saturday, issued anultimatum to the government to find the killers of their late father within two months or face relentless demonstrations.

It is not clear whether the operation is a direct response to the ultimatum.

At the time of filing this report, even though police confirmed the arrested persons are in the custody of the joint military and national security team, the exact location is still not known.

Spokesperson for the Northern Regional Police Command, Chief Inspector Ebenezer Tetteh, indicated that the dawn arrest led to some tension in Yendi, but says the police are on the alert.

“My information is that over 30 people were rounded up in a dawn swoop by a combined team of national security operatives and military personnel from Accra. But I will not be able to tell you whether those arrested are from gate ‘X’ or gate ‘Y’.”

He hinted that the detainees would be sent to Accra.

Chief Inspector Tetteh reiterated that the arrest is in connection with the ongoing investigations into the gruesome murder of Ya-Na and over 26 of his sub-chiefs in 2002.

He assured that the security agencies have been placed at vantage points to ensure that there would not be any outbreak of violence.

Meanwhile a group known as the Concerned Abudus for Peace and Justice has condemned the arrest.

Dr. Ziblim Idi, a spokesperson for the group, has called on the government to explain the rationale behind the arrest, since those involved were not cited as murderers of the late Ya-Na by the Wuoko Commission that investigated the case.



Story by Isaac Essel/myjoyonline.com/Ghana

Thursday, April 8, 2010

2.5m Internet Users In Ghana




Internet Cafe
THERE has been significant improvement in the communication sector with growth being registered in key areas.

Statistics collated this year reveal that, total phone subscriptions went up from 11,570,430 in 2008 to `15,318,225 while internet users climbed from as low as 45,000 last year to 2,500,000 this year.

This was made known by the Minister of Communication, Haruna Iddrisu when he took his turn at the Meet-the-Press series in Accra yesterday to touch on issues to do with the Ministry.

He said in respect of the Millennium Development Goals (MDG), the World Summit on the Information Society established a minimum penetration level of 25 per cent for the telecommunication industry and that going by such a growth rate what we accomplished this January was nearly 67 per cent.

Our resolve however, is to strive to secure a ubiquitous availability of telecommunication services that will enable the rural areas activity participate in the digital economy?, he said.

Mr Iddrisu said with the availability of broadband and expectant reduction of bandwidth prices in the country, the internet is now poised for its explosion.

He said though Ghana was among the leading internet countries in Africa, its growth had been sacrificed by the continuing reliance on voice telephony thereby suppressing the growth of the internet.

Mr Iddrisu said the Ministry along with other stakeholders has begun the reorganization of the management of Ghana Network Information Centre (ghNIC) to manage the internet.

The present exercise will give it a multi-sectoral participation in its management and allow the Ghana Network Information Centre to exercise its mandate provided under section 63 of the Electronic Transaction Act, Act 722 of 2008? he said.

Mr Iddrisu said to support internet development, the Ministry has further granted approval to the National Communication Authority (NCA) to prepare the guidelines for the auctioning of licences in the 2.5 GHz to 2-69 GHz frequency band to provide wireless nationwide broadband connectivity to subscribers excluding voice applications.

He said the Ministry is also facilitating negotiations between the Ghana Internet Service Providers and Vodafone for rebates on the lease of capacities on the SAT-3 cable to enable them provide affordable internet services.

Mr Iddrisu said government is alive to its responsibility to intervene where appropriate, to correct market failures, maintain fair competition, attract investment to enhance development and maximize economic and social benefits to serve national priorities.

?Conscious of the enormous responsibility to develop the communication sector, I want to say, that over the past year, government has empowered the governing institutions to perform the supervisory duties in open, fair and transparent manner.

Touching on other programmes undertaken by the Ministry, He said, the Ministry has commenced the implementation of an e-government infrastructure project that will provide a national network for networking Ministries and Departments to local government area structures.

He said the Ministry of Communication in conjunction with the Finance Ministry is facilitating the automation of the operations of the revenue agencies including the Ghana Revenue Authority and the Registrar-Generals Department through a Public Private Partnership arrangement.

Mr Iddrisu said with the recent spate of fire outbreaks and loss of vital national information, the Ministry is proceeding with the construction of a National Data Centre to which the national portal will be linked.

He said the Ministry is collaborating with the Ghana Standard Board to establish a comprehensive industry standard and quality assurance and certification for the software industry in Ghana.

Mr Iddrisu indicated that projects such as Community Information Centres, Provision of Universal Access Common Telecom facilities and Development of Standards and Accreditation in ICT skills are all on course and being pursued with keen interest by the Ministry.

He said the Ministry of Communication is facilitating the existence of a resilient and advanced technology platform upon which solute ions and strategies will be delivered to expand and improve education, governance, health delivery, facilitate commerce, finance and banking and support agricultural and environmental monitoring to stimulate growth in the economy.

Tuesday, April 6, 2010

Prez Mills Lashes At CEPS…There’s Too Much Corruption Within Service


President John Evans Atta Mills today turned the heat on officials of the Customs Excise and Preventive Service (CEPS) when he hit hard at some of them by accusing them of aidingsmugglers in defrauding the country of millions in revenue. Lamenting on the high level of corruption within the CEPS, President Mills, in a rare show of angerand in rather uncharacteristic harsh tone said, what he witnessed, buttressed reports of the connivance by some CEPS officials together with other economic saboteurs in fleecing the nation.

“Today CEPS; I’m telling you, I’m also getting a team to go round and oversee your operations, I’m not hiding it. Because, we own Mother Ghana something. The people who are crying in the streets, the people who are saying there are no jobs, the people who are saying that the economy is not working for them. You cannot have a strong and viable economy without the necessary resources and CEPS, must live up to its expectation and its standard, because in quite a number of cases we are under-collecting. If I ever doubted that…some of the people in CEPS were really working against the economy, what I saw with my own eyes and heard with my ear, convinced me beyond any reasonable doubt, that, if this is a person who has sworn to work in the interest of our nation and he can boast so brazenly and even aide smugglers to carry up cocoa across the border, I am saying my brothers and sisters, this is the time for introspection,” he charged.

President Mills passed these comments when he paid an unannounced visit today to some of the nation’s revenue collecting agencies.

Activities at the Customs Excise and Preventive Service (CEPS), the Value Added Tax (VAT) Secretariat, the Finance Ministry and the Internal Revenue Service (IRS) literally grounded to a halt when His Excellency continued with his extraordinary unannounced visits to some state institutions.

On Thursday, April 1st, President Mills paid a surprise historic visit to the Accra Psychiatric Hospital and said he was drawn to the hospital by the mounting challenges the hospital and mental health care system in general faced and promised to give the necessary assistance to solve those problems.

Whiles CEPS is the state organization responsible for the collection of taxes levied on Imports, Exports and some locally manufactured goods, the IRS, has the unique role of identifying the taxpayer, assess the taxpayer to tax, collect the tax and penalties assessed and pay all amounts collected into the Consolidated Fund to aid in National Development.

But the operations of these institutions, most especially the CEPS, have come under some intense media scrutiny and savoury attacks by some well-meaning Ghanaians.

Addressing staff of the Finance Ministry, President Mills said his administration is always mindful of the sacred obligation to build a Better Ghana and will lived up to expectations, at the end of its four year tenure in office.

“We’re not insensitive; we’re not in the Castle because every morning the Governor brings us loads and loads of cash to sit on and to sleep on. We’re there because we’re cognizant of the sacred obligation that has been thrust on us to build a Better Ghana…No gov’t starts afresh. Every gov’t has to continue from where others have left off; this is what some people conveniently forget. But Criticisms there will be, noises there will be. But noises and criticisms can never drown the sacred facts on the ground. We’re on a journey; we’ve a four year mandate and we’re always aware that the people of Ghana have reposed confidence in us. And the least that we can do is to ensure that we justify this confidence,” he stated.

Wednesday, March 24, 2010

Ghana's Biometric Passport Launched


I HOPE THE PASSPORT OFFICE WILL DO WELL TO CLEAR THE CURRENT BACKLOG

Biometric Passport203ap

Ghana is today joining eight of her colleague ECOWAS States to issue Biometric passports to its citizens. It’s expected that the new passport which has high security features will significantly reduce challenges such as theft and other fraudulent activities associated the old passport.

At the launch of the new passport the Minister of Foreign Affairs, Alhaji Mohammed Mumuni advised Ghanaians not to rush to change the old passport since the old and new passport will run concurrently until November 2015.

GBC

Monday, March 15, 2010

¢28 Billion Vanish From Offshore Account


THIS IS ONE OF THE REASONS WHY MO IBRAHIM REFUSED KUFFOUR HIS AWARD

Kufuor Thinking

A whopping $2,000,000.00 (Two Million United States Dollars), secured by President John Agyekum Kufuor and the New Patriotic Party (NPP) administration, with a Sovereign Guarantee, to rehabilitate some Ghanaian embassies, appears to have vanished without trace.

The amount was part of a $5Million loan, whose term sheet, states “shall be utilized exclusively for the renovation of selected Ghanaian Chanceries for Ghana’s 50th Independence Anniversary Celebrations.”

A statement of account on the Ministry of Finance & Economic Planning (MOFEP) bank Account number 0232002034552 with Stanbic Bank, opened for the transaction did not show a release of the $2,000,000.00 to the Government of Ghana.

The term sheet, dated December 7, 2006 addressed to the Kufuor administration through its Minister of Finance, indicates that ‘US$2,000,000.00 of the loan shall be booked with Standard Finance (Isle of Man) Limited,’ an offshore account.

Dr. Anthony Akoto Osei, who was a Deputy Minister of Finance and Economic Planning, signed as accepting the terms of the $5,000,000.00 loan on behalf of the Government of Ghana.

On December 11, 2006 US$3,000,000.00 (Three Million Dollars) was released to the MOFEP Account at Stanbic Bank. This amount was repaid on April 20, 2007.

On 14th May 2007, the MOFEP account with Stanbic Bank was again debited with US$3,800,000.00, described as Loan Granted to MOFEP.

The release of this $3.8Million after the repayment of the earlier amount of $3.0Million, all within the term period of the loan made the transaction appear like a revolving loan, with a ceiling of $3.8Million.

Subsequent transactions on the statement following the release of the $3.8Million reveal the various interest charges as well as repayments made to Stanbic Bank.

The $2.0Million was never released to the Government of Ghana, and it was not clear into whose account the amount was paid in the offshore bank.

The $5Million was part of a $17Million Commercial Loan Agreement approved by Parliament on 29th November, 2006. The other $12Million of the loan was to be used for UN Peace Keeping Operations.

The Ministry of Finance and Economic Planning (MOFEP) subsequently requested for a disbursement of the approved loan and issued a Sovereign Guarantee to secure the entire $17Million facility.

The Sovereign Guarantee, dated 7th December, 2006 to Stanbic Bank Ghana Limited, was signed by Dr. Akoto Osei.

By a term sheet dated December 7, 2006 Stanbic Bank Ghana Ltd granted the term loan of US$5,000,000.00 (Five million United States Dollars) to the Government of Ghana.

The $5 Million and interest on it was to be repaid in full within 36 months from the date of drawdown, and had October 26, 2009 as the Final Repayment date.

As of October 31, 2009 days after all outstanding amounts on the loan account should have been cleared, however, an amount of $883,332.00 was still owed to Stanbic Bank.

Mr. Akoto Ampaw, lawyer for the Chief Executive of the Ghana@50 Secretariat, had written to the Commission of Inquiry (Ghana@50) on December 8, 2009 denying his client’s knowledge of any transaction with Stanbic Bank.

In the said letter, which was titled: RE: CONTINUING INVESTIGATIONS OF THE COMMISSION OUTSIDE THE PUBLIC DOMAIN, and published by the New Crusading Guide of December 9, Mr. Ampaw complained that the Commission had written to Dr. Wereko-Brobby, ‘requesting for information in respect of a loan transaction between the Government of Ghana and Stanbic Bank Limited’ and that ‘he knows absolutely nothing about the transaction referred to in your letter.‘

According to Akoto Ampaw, ‘Neither the Ghana @ 50 Secretariat nor the National Planning Commission entered into any loan agreement with Stanbic Bank, either directly or through the Ministry of Finance and Economic Planning.’

Big men prey on girls


There have been rampant reports of sexual harassment from employers
There have been rampant reports of sexual harassment from employers
A woman of 24 years is bitterly lamenting the psychological trauma she has to endure in her search for a job. According to her, out of the eight workplaces she has gone so far to look for a job, all the top men want to sleep with her before giving her the job, reports Merari Alomele.

The tall model-like beauty who has had a stint in local advertising doesn't want to be identified, because she feels that might hamper her chances of getting a job which she is still hunting for.

"Mr. Editor, I find it extremely frightening that all those top executives want to have sex with me in exchange for a job," she told this writer on Monday. "I can say with all certainty that the sisters and daughters of men are in serious trouble, because the right to a job is no longer a right but a privilege that can be had only in exchange for sex, and it doesn't matter if you're qualified or not."

And who are those top executives? She wrote the names of the executives on a sheet of paper together with their establishments to prove her point, but doesn't want them to be published for the sake of their families, marriages and relationships.

"I don't want these names to be published; I just want these big men to know that they are a societal menace and should change for the better," she said. "In fact, they are a nightmare and I just pity myself and the hundreds of girls completing school and searching for jobs. They must be protected by the law, and that is why I am bringing this to your attention Mr Editor.”

When this writer suggested to her that she could report the matter to the police if she felts sexually harassed, she replied that the police do not have the capacity and will to fight those big men. "They'll only tell you to go and come, go and come. They can't do anything."

The woman said she studied Human Resource Management in university and felt qualified for a job. "If there is no vacancy in an establishment or workplace, I can understand if I'm told so; but if I'm asked to consider sleeping with the boss, that is very offensive and criminal and should be dealt with by law."

When reminded that the law cannot take its course unless a complaint is made, she said unless the police are prepared to take up such issues with all the seriousness they deserve, no victim of harassment will waste her time going to the police.

The woman said she felt encouraged to come to a media house because she listened recently to a JOY FM programme during which some women gave testimonies as to how they became victims of sexual harassment and seduction at the hands of prospective employers.

"One of the women said on JOY FM that she was passed round from man to man, four in all, all of whom slept with her, and yet didn't give her the job. That is terrible and society should not sit down unconcerned when these things are happening.

"In the schools, lecturers are said to be sexually harassing students and after school we have to go through these difficult situations to get a job. Isn't it time everybody took a serious look at what is happening to young girls and women? Society must wake up to the call and save the future mothers from selfish men who use their positions to destroy innocent minds," she said.


Source: The Spectator

Lawyer protests open inquiry into M&J scandal

CHRAJ Boss Emile Short
CHRAJ Boss Emile Short
A legal practitioner, Nana Ato Dadzie, has raised issues over the decision of the Commission on Human Rights and Administrative Justice (CHRAJ) to institute an open inquiry into the Mabey & Johnson (M&J) scandal.

Nana Dadzie, who is also a solicitor and counsel for Dr Ato Quashie, one of the persons mentioned in the M&J case, in a letter to CHRAJ, was of the opinion that the Commission ought not to be stampeded into an open inquiry in the M&J case when the very documents which formed the basis of the said allegations raised against the officials were unavailable or inadequate, as the Commissioner of CHRAJ, Mr Justice Emile Short himself stated recently.

According to Nana Dadzie, CHRAJ's insistence on the probe would amount to double standards when, in February 2010, Mr Short had made a public pronouncement that CHRAJ "is unable to proceed with the M&J allegation probe because it has not received all the documentation on the allegations it seeks to investigate".

He further stated that after reviewing the certified copy of the Regina vrs Mabey and Johnson case decided by the Southwark Crown Court dated 25/9/09, Suit No T20097513 forwarded to the solicitors by CHRAJ, he and his colleagues who constituted the defence counsel could not but agree with CHRAJ that "the said document cannot form the basis without more of any credible allegations for which a competent constitutional, legal and juridical body like CHRAJ would want to subject our client to any form of public enquiry".

"Like CHRAJ, our client does not have access to all the documents which form the basis for the said allegations. Our client is not expected to respond to the allegations the basis of which is uncertain and which he has no access to," he added.

He further stated that "a cursory reading of the judgement of the Southwark Crown Court referred to various other documents, material and private arrangements which went on between Mabey and Johnson and the SFO (UK), matters which were neither brought before the court nor seen by their clients".

Nana Dadzie further stated that "the SFO, at Paragraph 194 of the ‘Prosecution Opening Note’ to the Southwark Crown Court, stated with emphasis that the SFO decided not to mention the names of certain directors, executives and employees of M&J at this stage because they may face trial in English courts".

He said the SFO further stated that "the fact of the naming of certain directors, executives, employees of M&J and any others should not be taken by this court, the public and press as determinative of guilt of any of the persons named in this opening note. In the interest of fairness to those who are under investigation, no settled view concerning the culpability of individuals; whether named here or not, has been made".

"If investigations are yet to be concluded concerning a number of unnamed and unidentified individuals allegedly involved in the case, then who are the alleged accusers of our clients for which a public inquiry is being held here in Ghana," he asked.

Nana Dadzie claimed that the officials were never charged nor called as witnesses, nor were they party in the Southwark Crown Court trial, yet the English judge appeared to have admitted as fact allegations assumed against the Ghanaian officials by persons (new directors of M&J) whom they had never seen, met nor dealt with and whose alleged admissions in court their clients never had the opportunity to challenge nor test.

Strangely enough, he said, the former directors who were in office at all material times had not been charged, prosecuted or given evidence in any case in which their clients were mentioned.

He also re-affirmed the officials’ earlier objection to CHRAJ's jurisdiction to investigate allegations of corruption against them, since they were not public officers while those still in public office were not being investigated for allegations of impropriety with respect to their current office.

Nana Dadzie was of the firm belief that the judgement of the Southwark Court was of doubtful constitutional, legal and evidentiary value under Ghana's criminal jurisprudence and a gross violation of all known natural laws, more especially their client's right to a hearing before being condemned, as happened in the Southwark Crown Court Case.

"I wish to state that my clients cannot be part of the projected public inquiry when they, like CHRAJ itself, have no access to documents and records in this case, in spite of various unsuccessful public and private overtures by CHRAJ to relevant public bodies and individuals in the UK and Ghana 'fishing' for some evidence," he said.

He threatened that their clients might have no choice under the circumstance but apply for a restraining order against CHRAJ from competent legal authorities in the event that the appeal by their clients to the law arid the Constitution of Ghana was not acceded to by CHRAJ.

For the avoidance of doubt, Nana Dadzie added that their clients re-affirmed their earlier denial that they ever received any bribe whatsoever from M&J or any other company or individual to influence any decision they took in their former public office.

Meanwhile, the Patron of the Democratic Freedom Party (DFP), Dr Obed Yao Asamoah, commenting on the issue, has accused Mr John Hardy, an international prosecutor, who was in the country recently, of pre-judging the case.

According to Dr Asamoah, Mr Hardy's conduct fell below the expectation of the legal profession.

"Some persons are expected to appear before CHRAJ, Hardy was here to pronounce the affected persons guilty. That was not proper,” he said.


Source: Daily Guide/Ghana

Sunday, March 7, 2010

Ghana Celebrates 53-Years Independence Saturday


As Ghana celebrates 53 years of Independence this Saturday, the ambassador to the United States is hailing the strong bilateral relations between Accra and Washington.

Map of Ghana

Ghana gained its independence on 6th March 1957 from Britain.

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“The visit of President Obama did greatly enhance this friendship…We can look into the future with optimism and faith, and of course the people of Ghana and our government are extremely grateful for the hand of friendship that the U.S and the support that the people of the United States have extended to the Ghana government and the people of Ghana,”

As Ghana celebrates 53 years of Independence this Saturday, the ambassador to the United States is hailing the strong bilateral relations between Accra and Washington.

Ambassador Daniel Ohene Agyekum said Ghana is serving as a shining example envisioned by the founding fathers to all of Africa with its embrace of the true tenets of democracy.

“We will be celebrating 53 years of our independence, and this marks quite an important milestone in our history. It is important because Ghana is now at the crossroads of building a society that is democratic and in which each and every individual member of the society is encouraged to play a role,” he said.

AFP Photo
Ghana's President Prof. John Evans Atta-Mills

Led by first President Osagyefo Kwame Nkrumah and the other founding fathers, the then-Gold Coast attained its independence from Britain on 6 March 1957, becoming the first black African country south of the Sahara to do so.

The name Ghana (warrior king) was legally adopted shortly after independence.

Ambassador Agyekum expressed gratitude to the countries that have supported Ghana’s efforts to strengthen its democratic institutions.

“As we celebrate this occasion, we are encouraged by the support that we have received from many friendly countries including the United States of America, where I represent the interest of the government and the people of Ghana. It is important because for the relationship of the U.S and Ghana, we have enjoyed tremendous partnership, a partnership that has enabled us to grow our economy, our infrastructure, and I am saying these in all sincerity,” Agyekum said.

On his first official visit to a sub-Saharan African country last year, President Barack Obama said in a speech to Ghana’s parliament that “the people of Ghana have worked hard to put democracy on a firmer footing, with peaceful transfers of power, even in the wake of closely contested elections. And with improved governance and an emerging civil society, Ghana's economy has shown impressive rates of growth,” Obama said.

AFP Photo
President Obama delivering his speech in Ghana's parliament.

Ambassador Agyekum said President Obama’s visit to Ghana significantly strengthened the countries’ bilateral relations.

“The visit of President Obama did greatly enhance this friendship…We can look into the future with optimism and faith, and of course the people of Ghana and our government are extremely grateful for the hand of friendship that the U.S and the support that the people of the United States have extended to the Ghana government and the people of Ghana,” Agyekum said.

Shortly after independence, President Nkrumah said Ghana’s independence was meaningless unless it was linked to the liberation of the entire African continent.

Political observers say Ghana’s independence was a catalyst for many African nations to demand their freedoms from their colonial masters.

VOA NEWS

Thursday, February 18, 2010

NGO calls for abrogation of AVRL Contract


BUT WILL THE POLITICIANS WHO DO NOT EXPERIENCE WATER PROBLEMS LISTEN?


Accra, Feb. 18, GNA - Following recent water shortages that hit parts of Accra Metropolis, the National Coalition Against Privatization of Water (NCAP), on Wednesday called on government to abrogate the water management contract with Aqua Vitens Rand Limited (AVRL).

It said the company had failed to deliver the projected outcomes of the contract. Mr Alhassan Adam, a member of NCAP, who addressed the media in Accra, said access, quality and reliability indicators in the water sector had suffered woeful decline since the signing of the AVRL management contract
and that "it is important to cut our losses by taking steps to abrogate the contract".

He said the failure of the World Bank-sponsored urban water reforms in the country presented an urgent solution to potable water delivery to Ghanaians. Mr Adam said that since the AVRL contract commenced, tariffs had shot up by as much as 67 per cent, which had not translated into improved service delivery.

He noted that the recent water crisis exposed the lack of technical capacity on the part of AVRL, raising doubts about the qualifications, experience and competence of its consultants in urban water management.

"As we speak, they have tabled proposal for further tariff increases... Sadly, these increases have not translated into improved service delivery.. "It is pretty obvious that, we are witnessing a trend that is fast moving towards the worst we can ever imagine". "We are beginning to realize the extent to which we as a country have so cheaply and unreasonably exposed an important resource sector of ours to be toyed with by private foreign profit seekers," Mr Adams said. He said that the recent water crisis was inevitable because AVRL had had cause to comment on the state of the low lift pumps at the country's two major water headworks at Wieja and Kpong.

"We are appalled at the surprise being feigned by AVRL as though this situation came about without any notice. For us this recent crisis has exposed a lack of technical capacity on the part of AVRL," he said. Mr Adams noted, however, that the problem facing urban water delivery in the country had nothing to do with management but with investment. "The World Bank and Government of Ghana have therefore got it all wrong by proposing a management solution to an investment problem," he added. "We challenge President John Evans Atta Mills to honour his words when he said unequivocally at the IEA Presidential Debate that he does not believe in water privatization". The NCAP thus called for a national dialogue to chart a new path for water delivery in Ghana.

Tuesday, February 9, 2010

The UK and Corruption in Ghana


THE BRITISH GOVERNMENT ARE THE BIGGEST HYPOCRITES

British High Commissioner Nick Westcott is not afraid to step in to controversy. Having boldly told us that Vodafone did nothing wrong in their acquisition of Ghana Telecom, he now lectures Ghana that incoming governments must respect contracts entered into by the outgoing government.

Of course, that is true. As a general point, it is a simple statement of the legal position.

But we all know that Dr Westcott did not mean it as a general point. He meant that investigations into contracts including Kosmos and Vodafone must be stopped. Otherwise, he warned, investor confidence would be damaged – a warning that foreigners would take their dollars elsewhere.

But what is the logic of this position? No government may question any contract entered into by a predecessor, no matter how corruptly? That if you are a dreadfully corrupt foreign businessman, who has bribed a minister, you only have to hang on until the government changes, and then you cannot be investigated? Plainly this is a nonsense.

The fact is that, as detailed in a series of articles in the Financial Times of London, there are a whole number of questions about the Kosmos deal which give experienced observers great cause for concern.

One which particularly worries me is how, on the best oilfield in Ghana, Kosmos were able to get a royalty rate of only 5%, when the average on other fields is over 11%. There are suggestions that partners from EO were active on the Ghanaian government side of the negotiation.

There are also credible stories of Kosmos handing EO millions of dollars in cash notes for “marketing and publicity”.

Is Ghana forbidden from investigation because the government has changed? No, and they must not be bullied out of it by the British, Americans, IMF or World Bank. Those will always back wealthy Western companies against a developing African nation.

The Vodafone deal suffered – at the very least – from a lack of transparency and a lack of a level playing field for others – including France Telecom – who wished to compete. The final sales price was definitely too cheap.

I would like to know how Ghana Airways' invaluable routes were awarded to GIA - a bunch of obscure and inexperienced investors who came only fourth in the official assessment of bids. The result has been the almost total disappearance of Ghana's whole aviation industry.

I would like to know how industrial development funds were given to a network of companies the ultimate ownership of which traced back to the Minister of
Industry.

The British High Commissioner has the problem entirely backwards. It is not that the government is not honouring existing contracts. I am Chairman of several companies, including Atholl Energy. Atholl had a contract with the NPP government which has been honoured by the NDC government, because we carry our our work diligently and honestly.

The problem is that where contracts are not honest, action has not been fast enough or decisive enough to root out corruption.

Two of the worst examples are in the energy sector. Let us look at the case of another British company, Zakhem International Ltd. They are building the Kpone Power Project for VRA.

VRA bought the turbines from the manufacturer, Alsthom for US $70 million. They then paid Zakhem US $80 million upfront to install them and provide the ancillary equipment.

After three years, what do Ghanaian taxpayers have to show for their US $150 million? Absolutely nothing. An empty field at Kpone, surrounded by Ghana's longest concrete wall so the Ghanaian public cannot see that their money has been stolen.

What is happening about it? Nothing, because Zakhem and their Ghanaian partners have stolen enough money to bribe all the officials involved. They are now claiming around town that the new government is also “In their pocket”.

Most of the $80 million has vanished forever, while the $70 million turbines are now badly damaged by disuse.

Or look at Balkan Energy. They claimed to have spent US $100 million on refurbishing the Osagyefo barge, at a time when they had really spent less than US10 million.

Under an astonishingly corrupt contract, Balkan are to lease the barge for $10 million per year, from the government of Ghana, but then charge Ghana over $40 million per year for its use as a “Capacity charge”. They will in addition charge the government of Ghana for the fuel, and make a profit on that too.

It is as if I rented your car from you for 100 Ghana cedis a month, then rented it back to you for 500 Ghana cedis a month plus charging you a premium on all the petrol you use.

Balkan stand to make a total of about $1.5 billion dollars in profit from the people of Ghana from this terrible deal. It is the most corrupt contract I have ever seen. It is astonishing that a country like Ghana would enter into a contract with Balkan, whose owner, Gene E Phillips, has stood trial as a gangster in the United States.

These are not crimes without a victim. Everyone who pays any VAT or other tax in Ghana is putting money into the pockets of these disgraceful conmen. Most of the taxpayers of Ghana are very poor, and the money is being taken by people who are very rich.

That is why I am speaking out. I am not supporting any political party. I am supporting the ordinary people of Ghana.

I first spoke out about corruption in Ghana back in 1999, when I was Deputy High Commissioner there. It caused a sensation in the Ghanaian media at the time. But people do not know that I was nearly sacked by the British government as a result.

The British government did not object at all to my attacking corruption in Ghana. The reason I was nearly sacked was because I said “Sadly some British companies have been involved in this corruption”. I was carpeted by the British government and told I must never mention British companies' corruption.

At the time I was thinking of the British company International Generics Ltd and their involvement in scams over the La Palm and Coco Palm hotels.

The hypocrisy of the British government in defending corrupt British companies was most famously seen when Tony Blair ordered an end to a prosecution of the arms company BAE over massive bribes they had paid in Saudi Arabia. Blair declared that prosecuting BAE was not “In the national interest”.

Last week BAE again escaped criminal prosecution and were allowed to pay a fine instead, for corruption in Africa including Tanzania.

So Nick Westcott is only continuing a British hypocritical tradition of condemning corruption, unless it is British corruption.

The truth is that sadly there was a major increase in corruption in Ghana especially in 2007 and 2008. That was a major reason why the Ghanaian people voted to change their government. But so far there is little indication that the new government has done much to root out the corruption.

The danger in this is that ordinary people will become disillusioned with the political process.

Ghanaians are not stupid. People know who stole money, and they see them swanning around town in their fancy cars, unashamedly living the highlife. This can corrupt society. Young people can easily draw the conclusion that the way to make money is to be a corrupt politician or a drugs dealer.

The further danger is that, just like in Nigeria, they conclude that all the politicians of all the parties are into the corruption, and that is why everyone gets away with it.
I did not used to think that was true in Ghana, but I really am beginning to wonder, unless we see some effective action soon.

So rather than protecting the corrupt, the British High Commissioner should be offering help and assistance actively to attack corruption. That includes corruption by British companies.

He should also remember that, with oil revenues within touching distance, Ghana will soon have her own investment funds and no longer be so dependent on foreign investors. It is not for the colonial master to kick Ghana. The boot will soon be on the other foot.

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