National Service Allowance up by GHc 107

By Edmund Mingle

 The National Service allowance has been increased from GHc 243 to

GHc 350.

 According to the Ministry of Education, the increment, which takes effect from January 1, 2014, was to motivate personnel to give of their best.

Samuel Okudzeto Ablakwa

Samuel Okudzeto Ablakwa, a Deputy Minister of Education in charge of Tertiary, who confirmed the increment to the Ghanaian Times yesterday, said it followed a request from the National Service Board.

He said the Ministry forwarded its approval of the increment to the Ministry of Finance which also granted it.

He said the service allowance had not witnessed any major upward adjustment for a few years, saying the Ministry deemed it critical to increase it for the benefit of the service personnel.

“We believe this would motivate the service personnel to accept postings and perform creditably,” he said.

 END

Cabinet Approves $600m Atuabo Port Project

By Edmund Mingle                                                              

CABINET has given approval for the establishment of the 600-million-dollar Atuabo Free Port project in the Western Region, which is expected to create more than 2,000 jobs.

Lonrho's Free Port in Luba, Equatorial Guinea

The construction of the free port, being promoted by Lornho, a leading British firm, will make Atuabo the West African hub for the servicing of vessels, especially those operating in the oil and gas industry.

Cabinet’s approval, which was confirmed by Energy Minister, Emmanuel Armah Kofi Buah to the Ghanaian Times yesterday, follows the completion of successful preparatory works which included feasibility studies, acquisition of land, productive community engagement and Environmental Impact Assessment.

Following Cabinet approval, Parliamentary ratification is in process following which , the active construction works are expected to take off later this year.

The project has been structured to be 100% funded by the private sector and without the requirement of a sovereign guarantee or funding from the Government of Ghana. 

 Steven Gray, Development Director at Lonrho Ports, explained to the Ghanaian Times that the government had negotiated that in addition to the Government of Ghana’s free carry of 10% of the project, a further 35% of equity is to be made available for Ghanaian institutions. This is to secure a 45% Ghanaian participation in Atuabo Free Port. The Port’s Governing Board will be chaired by a person appointed by the Government of Ghana.

This is to secure a 45 per cent Ghanaian participation in Atuabo Free Port,” he said, adding that the Port’s Governing Board would be chaired by a person appointed by the government.

He further explained that “this is a significant private sector initiative that reflects the international appetite for private sector investment in infrastructure projects in Ghana, such that no capital cost will be incurred by the Government of Ghana, and the project is totally off the government’s balance sheet,” 

He said, that Lonrho has spent an initial US$15 million dollars to undertake all the pre project feasibility studies, land acquisition and other preparatory works to ensure the project able to attract private sector funding.

Ghana, he said would be the ultimate beneficiary of the project, indicating that “once operational, the government as an equity shareholder in the project will earn dividend and royalty payments,” in addition to the thousands of jobs and skills transfer for Ghanaians.

Apart from benefits to central government, the chiefs and people of the area would also benefit the company has agreed to use the leased land as the Atuabo community’s equity in the project.

He said as a condition from Cabinet, the name of the project had to be changed from Lonrho free oil and gas services port to Atuabo Free Port as a way of promoting the economy of the region.

According to Mr. Gray, the project, which has been welcomed by chiefs of Atuabo, “is a development that can expand the economic opportunities of Ghana as an attractive destination for foreign direct investment into West Africa for the oil and gas sector.”

In addition, he said the project, which has been designed to provide the necessary infrastructure to support oil and gas companies to develop and enhance local content, has no indefinite exclusivity, since it does not prevent the establishment of other services ports in Ghana.

The Atuabo Free Port Complex, which would be operated in collaboration with the Ghana Port and Harbours Authority and other relevant agencies, would provide support services for the offshore oil and gas developments in Ghana as well as providing the infrastructure for companies wishing to offer services to their other Oil and Gas clients in the region.

Services to be provided by the Free Port to the oil and gas industry include as Logistics Supply Bases, offshore fabrications, rig and ship repairs, modification, maintenance and life support operations.

It supports the government’s Medium Term National Development Policy Framework dubbed “Ghana Shared Growth and Development Agenda 2011-2013” which calls for spatial planning to encourage developments that bridge the spatial divide between the traditional economic growth points to other locations around the country and relieve the perpetual problem of congestion of the Ports in Ghana. 

The project’s concession agreement was negotiated by Lonrho with the Cabinet sub-committee involving Ministries of Petroleum & Energy, Transport, Finance & Economic Planning, Trade & Industry, Foreign Affairs & Regional Integration, Justice & Attorney General, Ghana Ports and Harbours Authority, Ghana Revenue Authority and Ghana Free Zones Board, before the full cabinet approved it.

The project begun in August 2011,with the signing of a Memorandum of Understanding between Lonrho and the government for feasibility studies which was funded by the former.

Lonrho currently operates in 18 African countries in the fields of infrastructure development, transport, agribusiness, hospitality industry and support services.

As part of its local content plan, Lonrho would offer skills development training for artisans in the area to be engaged for the construction process, while it has a comprehensive livelihood restoration programme for the communities directly affected by the development of the port. 

In addition, a Development Assistance Trust, which would be transparently funded as part of the land lease arrangements with the Stool, would be created to focus on investing into social infrastructure facilities such as schools, clinics and community centres.

Also, the company intends to support small scale enterprises to actively participate in the project which is expected to offer more than 1,000 jobs to the locals.

 END

GYEEDA Contracts Scrapped, As Firms Agree To Refund Cash

By Edmund Mingle
Service providers under the Ghana Youth Employment and Entrepreneurial Agency (GYEEDA) programme have agreed to refund all monies advanced to them, as the government has abrogated all, contracts under GYEEDA.

President Mahama (right) receiving the GYEEDA
Report from Youth and Sports Minister,
Elvis Afriyie Ankrah

The terminated contracts under the GYEEDA modules included those with Rlg Communication's training module, Asongtaba Cottage Industry & Exchange Programme (ACI&EP), and the Better Ghana Management Services Limited, a subsidiary of Jospong Group of Companies and Craftpro Limited.

Following the termination of the contracts which was communicated to the parties in letters dated January 9, 2014, and demand notices by the Attorney-General, the Rlg Communications, Asongtaba Cottage Industry & Exchange Programme and Craftpro Limited indicated their preparedness to refund all monies advanced to them by the government under the respective GYEEDA projects.

The termination of the contracts, which formed part of the government fight against corruption, followed the submission of a committee’s investigative report on the operations of GYEEDA, by the Youth and Sports Minister, Elvis Afriyie Ankrah, to President John Mahama on January 7 this year.

The report recommended the abrogation of some contracts, which it found to have been inappropriately awarded, and of the monies refunded.

Mr. Afriyie Ankrah who confirmed the contracts termination to the Ghanaian Times yesterday, said the Attorney-General was dealing with the affected firms on the timelines for the refund of the monies.

Asked about the possibility of prosecution of people and groups found culpable, he noted that such decision was for the Attorney-General to take, indicating that the Attorney-General Department had been collaborating with the Economic and Organised Crimes Office on the GYEEDA investigations.

According to the minister, the cancellation of the contracts, which was communicated in letters signed by Alhaji Abdulai Yakubu, Chief Director of the Ministry of Youth and Sports, was done after a series of meetings between the government and the companies.

The letter said "I am directed to convey to you, Government's decision to discontinue or terminate the contract with immediate effect.

"You are hereby requested to continue to have engagements with the Attorney General's Department and Ministry of Justice on your liabilities to GYEEDA and ensure the refund of same to Government," it added.
Following notices of demand for the refund of the monies which the Attorney-General indicated in the demand notices that those monies were paid without Parliament’s approval, Rlg Communications Limited, agreed to refund over GH¢7. 2million while Asontagba Cottage Industries and Exchange Programme, agreed to refund over Gh¢ 41.3million. Caftpro Limited is also refunding about GH¢7.5million to the State.

In their separate letters responding to the demand notices by the Attorney-General, the three companies, prayed a little more time beyond the five days timeline given to them in the demand letters.

Craftpro Limited and Asontgtaba Cottage Industries are refunding the interest-free set up portion of the contract sum, while Rlg Communications is refunding monies “wrongly termed a loan” under the contract.

Rlg Communications’ letter dated December 12, 2013, signed by the company’s lawyer, Prosper Harrison Addo, and addressed to the Attorney-General and Minister of Justice, prayed for more time to refund the money.
“While we agree to refund the interest free refundable portion of the contract sum, which we have started per the contract terms, it is impossible to refund the amount due and owing as at today in five days, unless we are being set up to default payment and/or jeopardize the operation and the very existence of the company.

“We are by this letter praying your good self for a meeting at your earliest convenience to discuss the issues raised in your letter and our reply to come out with a workable plan,” the letter said.
END

ADB Outdoors New Corporate Identity

By Edmund Mingle

The Agricultural Development Bank (ADB) yesterday outdoored its new corporate identity in line with its restructured operations to offer enhanced services to the agricultural and various sectors of the economy.

Stephen Kpordzih, Managing Director of ADB

The new logo, which the bank said demonstrates its renewed commitment to national developmental ideals, is a major part of the implementation of a rebranding and expansion strategy to make the bank more competitive.

In addition, the expansion plan is to enable the bank to be abreast of modern trends in banking and financial services industry, while keeping to its mission of being a leader in agriculture financing.

“We are through the launching of a new logo and identity, embarking on a new era of banking excellence and a renewed support for the nation’s development agenda,” said Stephen Kpordzih, Managing Director of ADB at the launch in Accra.

He explained that the new logo reflects a deep will within ADB to keep up with modernity and evolution.

Touching on the need for a new corporate image, he noted that on account of significant national and international recognition received by the bank, “ADB has evidently outgrown its old identity, hence the need to refresh its identity, improve its look and feel, and present its modern face to the country and the world at large.”

“Our name, values, mission and purpose remain unchanged,” he said, explaining that the “new logo is part of a broader initiative to clearly define ADB as a modern institution and set out a new ambition for the future.”

According to Mr. Kpordzih, ADB from 2010 embarked on a change agenda which had transformed the bank in the areas of infrastructure, internal processes, business model, products and channels, human resource skills, branch outreach and external looks, among others.

“On the strength of this remarkable transformation, ADB continues to receive recognition and commendation through local and international awards from reputable organizations and bodies,” he said.

In 2013 alone, he said the bank won 15 awards locally and internationally, and pledged the bank’s commitment to continue to live up to expectation.

Nana Soglo Alloh IV, Chairman of ADB’s Board noted that execution of the bank’s 2010-2012 strategy allowed ADB to stay true to its core business mission and also repositioned ADB as a competitive and highly efficient policy-led agricultural-financing institution of choice, and a modern universal bank with a sustainable development outlook.

Currently, the bank is in the initial stage of its follow-up strategic plan for the 2014-2016 period, designed to ensure sustainable growth and profitability and build on the key successes achieved in the previous strategic plan.

He announced that a key driver in the new plan “is the injection of additional capital into the business of the bank through floatation of part of the publicly held shares of the bank and the aggressive recovery of debts owed by defaulting customers.”

“Into the future, we recognize our responsibility as a bank to our customers, shareholders, government and country, employees, and our service providers and so pledge our commitment to keep to our mission,” he said.

“To our government and country, we are committed to leveraging our skills, resources and risk expertise to build an efficient policy-led agricultural-financing institution of choice and contribute to the building of a strong national economy,” the Chairman added.

Unveiling the new logo, on behalf of Seth Terkper, Minister of Finance, George Kweku Rickett-Hagan, a Deputy Ministry of Finance, commended the management of the bank for the initiative, saying that the rebranding would enable ADB to attract new customers and widen their foot print in the banking industry.

The banking sector, he noted, has become increasingly competitive with new banks getting licensed, while others continue to develop new and superior products and services to meet customer expectations.

The minister lauded the contribution of ADB to national development, and assured it of government’s continuous support and cooperation.

END

Vice President Makes Case For GREDA To Take Part In Affordable Housing Project

From Edmund Mingle, Kpone.

The Vice President Kwesi Amissah-Arthur on Tuesday made a case for the Ghana Real Estate Developers Association (GREDA) as he directed the Ministry of Water Resources, Works and Housing to actively involve the association in the execution of government’s ongoing affordable housing projects.

Vice President Amissah-Arhur( second right, front roll) with
Alhaji Collins Dauda( in smock) and Joe Abbey (third right)
during the tour of the affordable housing sites

He believed that the participation of the GREDA would help to effectively complete the affordable housing projects across the country.

Vice President Amissah-Arthur, who gave the directive during an inspection tour of the affordable housing project site at Kpone near Tema on Tuesday, said it was important that the required resources were mobilized to complete the project for the benefit of Ghanaians.

When the modalities for the association’s participation are finalized, GREDA, which has continuously questioned its non-involvement in the project as a group, would join institutions such as the Tema Development Corporation (TDC) and the State Housing Company (SHC) to complete the hundreds of blocks of housing unit at Kpone and Borteyman.

Construction works at the Kpone, Borteyman, Wa, Tamale, Asokori Mampong and Koforidua sites have stalled for a number of years due to financial and logistical problems.

But the Vice President indicated that resources need to be found to complete the projects, which are more than 60 per cent completed, since such huge investment could not be left to go waste.

Vice President Amissah-Arthur in a chat with IGP, Mohammed
Alhassan and National Security Coordinator, Lt. Col. Gbevlo Lartey

“We are determined to have these blocks completed,” he said.

The Vice President, who also toured the Borteyman project site, urged the sector Ministry to develop innovative means to get resources for the completion works.

In that regard, he lauded the Ministry for involving the TDC and the SHC for complete some of the blocks.

 The TDC has been allocated 24 blocks consisting of 314 units out of the total of 1,546 units at Kpone to complete.

According to the Alhaji Collins Dauda, Minister of Water Resources, Works and Housing, more blocks would be allocated to the TDC depending on its performance on the 24 blocks.

He said five blocks made up of 72 units, which were allocated to the Military have been completed, adding that arrangements were underway to allocate some to the Police and other security agencies who have the resources to complete the allocated blocks.

 He explained that the Ministry was making arrangements with the banks for a mortgage facility to help public sector workers who would be allocated the houses to repay.

This will ensure that those who finance the project recoup their funds,” he said.

He assured GREDA of the Ministry’s cooperation, and indication that the Ministry was prepared to involve investors who have the funds to support the completion of the projects.

Kwakye Dopoah Dei, President of GREDA, who was part of the tour, thanked the Vice President for the intervention, and promised that its members would do their best to deliver.

Joe Abbey, Managing Director of TDC, thanked the Housing Ministry for the cooperation, and gave the assurance that their 24 blocks would be fully completed within six months.

Those who joined the Vice President for the tour included the Inspector General of Police Mohammed Alhassan and Greater Accra Regional Minister, Julius Debrah.

END

STX Faces Contempt Charge Over Debt Owed Sky Resources Travel & Tours

By Edmund Mingle

A motion for contempt has been filed against Bernard Asamoah, Chief Executive Officer of STX Engineering and Construction Limited by Sky Resources Travel and Tours Limited over the former’s failure to pay 90,000 dollars as part payment defray a debt owed the travel and tours company.

Counsel for Sky Resources filed the motion for contempt last Friday at the Fast Track High Court which gave the order for Mr. Asamoah to pay the amount.

The debt accrued from the purchase of airline tickets at the cost of 163,161 dollars by Mr. Asamoah in 2010 for a government delegation to travel to USA and Mexico as part of the botched STX Housing project.

However, the Mr. Asamoah paid 19,354 dollars, and has since failed to pay the remaining 143, 807 dollars.

The passengers on the trip who have also being sued severally by the Plaintiff, are Alban Sumana Bagbin, the then Minister of Works & Housing, Alice Adjoa Yornas, David Asuming, Member of Parliament for Shai Osudoku, Sampson Nortey of the Ministry of Finance, Harry Yamson, STX Board Member, Joseph Sika Nartey from the Police Service, Peter Ghansah, from the Ghana Armed forces, William George Instiful, from KNUST, Sachimo Atongo,Yvonne Opoku, STX staff, Anaman Kofi, STX staff, Gabriel Ayomi Akakpo, George Padi, John Ahene Tetteh and James Akomea Frimpong

The Fast Track High Court, presided over by Justice L.L. Mensah, on October 28, 2013 ordered Mr Asamoah to pay 90,000 dollars to defray part of the debt by November 26, 2013, but the defendant failed to do so.

According to the statement of claim, the Plaintiff, Seth Osafo Danquah, Chief Executive of Sky Resources Travel and Tours Limited, between January 10 and May 16, 2011, acting on the strength of Mr. Asamoah’s representations and personnal assurance of repayment, issued airline tickets to the Mr. Asamoah and other passengers nominated by the Defendant to travel to Korea and other destinations at the total cost of 163,161 dollars.

“The defendants have repaid the sum of 19,354 dollars leaving unpaid the total sum of 143,807 dollars, and have refused to pay to date in spite of the Plaintiff’s entreaties.

“By reason of the Defendants’ default, the Plaintiff was compelled to take an overdraft facility from its bankers to meet its repayment obligations to the airlines from whom the tickets were purchased on credit, and which overdraft facility Plaintiff continues to service and has accrued a total liability of 450,000 dollars at present, and continues to run,” it said.

According to counsel for the Plaintiff, Sky Resources has virtually collapsed due to the high debt, as it has laid off 26 workers, and is currently being pursued by SSNIT for the company’s inability to pay workers’ contribution due to the poor financial standing as a result of the non -payment of the debt by STX Engineering.

The Plaintiff’s house, used as collateral for the loan facility to pay for the airline ticket, is also set to be auctioned by his bankers for non-payment of the loan

Currently, Mr. Osafo Danquah, has been hospitalized after fainting last Thursday due to the mounting pressure from his bankers.

END

HUMAN SECURITY DEPT. INTERVENES IN ACCRA WATER CRISIS

By Edmund Mingle

The Human Security Department of National Security has intervened in the severe water crisis that has hit Osu and surrounding areas in Accra.

 

As part of the intervention, the Department has been supplying free water daily with its tankers to households and shops in the affected areas.

The move has provided relief for the residents who hitherto grappled with the severe water shortage, which the Ghana Water Company says it is working to rectify.

Major Ignatius Awuni, Officer in Charge of the Human Security Department told the Ghanaian Times yesterday that his outfit has been supplying the water for since last Wednesday.

According to him the intervention was to help provide relief for the residents until the normal water supply had been restored.

He said the water tankers from the Prisons and Fire Services would be released to join the relief operations from today.

He said as a long term measure, the Department would drill boreholes in the area to supplement the water supply.

“The borehole can provide support in times of such water shortages,” he said, adding that the department’s borehole drilling team has started preparatory works for the boreholes project.

Residents the Ghanaian Times spoke interacted with were very appreciative of the relief operation by the Human Security Department.