Lister Hospital Assists Martey Presby School

By Edmund Mingle

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The pupils and teachers of the Martey Tsuru Presbyterian Basic School in the Ledzokuku-Krowor Municipality of the Greater Accra, heaved a sigh of relief with the commissioning of a GH¢4,500 water reservoir system for them.

It consists of two big polytanks and a standpipe platform. The Lister Hospital and Fertility Centre, located in the area, financed the project, in response to an appeal made by the school, to the management of the hospital for assistance to access potable water.

The 650 pupils and teachers of the school, hitherto grapple for water, which at times disrupt teaching and learning.

At a brief handing over ceremony, on Tuesday, Dr. Edem K. Hiadzi, the Chief Executive Officer of the hospital, said “the provision of the water system is part of the hospital’s corporate social responsibility and our commitment to assist the community we operate in”.

He said the hospital values the provision of quality education, and keen on ensuring that it was improved upon in our host community.

According to Dr. Hiadzi, there is the need to create a congenial learning environment to enable the children to perform creditably in their academic work.

He promised that the hospital would continue to support the school to improve teaching and learning, saying “we shall continue to support the kids who are our future leaders.

Mr David Pickering, the Administrator of the Hospital, was optimistic the system would provide some comfort for the children so that the challenges of access to water, would not affect academic activities in the school.

The Headteacher, Mrs. Janet Addo-Okyere, expressed her appreciation to the management of the hospital for the facility, which she described as timely.

She said the water system would provide a lot of relief to cushion the rampant water shortage experienced in the area.

Isofoton Case Thrown Out

By Edmund Mingle

Mrs. Marrietta Brew Appiah-Oppong, Attorney-General

An Accra Fast Track High Court has dismissed an application for stay of exercise of summons for Isofoton S. A. to refund part of a judgment debt wrongly paid to it by the government.

The dismissal of the application paves the way for the State to retrieve $325,472 from the Spanish company.

Isofoton S. A. had filed a motion praying the court, presided over by Justice K. A. Ofori-Atta, to set aside a writ of summons and statement of claim against the company by the Attorney- General (A-G) for the company to refund the cedi equivalent of $325,472 to the State.

Among the reliefs it sought, the company claimed that the court lacked the jurisdiction to ascertain the writ of the plaintiff, and that the plaintiff’s suit was wrongly filed indicating an abuse of the process of court.

But the court, dismissing the application on Tuesday, reasoned that the plaintiff’s writ, was proper, indicating that the writ of summons was a way to retrieve the funds from the defendant.

The case will now travel its natural course, and the counsel for Isofoton S.A. represented in Ghana by Mr. Anane-Agyei Forson, has seven days to file its defence.

In the Plaintiff’s claim, the A-G is seeking a refund of $325,472 to the State. The money was the first instalment of a wrong $ 1.3 million judgment debt the company was demanding from the State. The A-G is also seeking interest accrued on the amount and cost.

On June 21,2013, the Supreme Court directed the company to refund all moneys it had so far received from the government on the grounds that the agreements resulting in the payments were unconstitutional, and therefore, null and void.

The Supreme'Court’s decision followed an application by a former Attorney-General and Minister of Justice, Mr Martin Amidu, who argued that the payment of the judgement debt done in March 2011, was wrong because the company had no basis to make the claims against the government since it had no contract with the government of Ghana which had been breached.

Following the court’s judgment, the Attorney-General, on August 22,2013, filed a writ of summons and statement of claim in a bid to retrieve all moneys wrongly paid to the company.

But three months after the A-G had filed the suit, court bailiffs were unsuccessful in serving court documents on Isofoton S. A, thereby prompting the Attorney-General to resort to substituted service.

The Fast Track High Court, granted the request for substituted service and ordered that the writ of summons and statement of claim filed on August 22,2013 together with the court’s order, should be served on Isofoton per its lawyer.

The court had in its unanimous decision on June 21, 2013 directed that the refunds be made with interest until the date of final judgment

Isofoton S.A., which is involved in designing, manufacturing and supplying of solar energy products, was expected to engage on a project for agricultural irrigation and rural electrification based on solar technologies in 2006, but the then government is said to have abrogated the contract and re-awarded it to another Spanish firm.

The company was demanding judgment debt of $ 1.3 million for which the government had started paying in instalments, but the Supreme Court on February 8, 2013 put a hold on further payment of money to Isofoton S. A., until the final determination of the suit brought against it by Mr Amidu.

In its judgment, the Supreme Court held that the lower court hearing an action instituted against the government by Isofoton S.A. on the abrogation of the contract, had no locus to continue hearing the case because the court was of the view that it (lower court) did not have jurisdiction.

The Supreme Court’s June 21,2013 decision on Isofoton rendered the company’s action against the government at the lower court mute.

Ghana Infrastructure Fund plan takes off

By Edmund Mingle
Arrangements for the establishment of the Ghana Infrastructural Fund (GIF), to boost the development of infrastructural projects in the country, kicked off yesterday with a round table discussions among major stakeholders.

From R to L-- Ato Ahwoi, Vice President Aamissah Arthur, 

 

 

Finance Minster Seth Terkper amd Arthorney General, Mrs. Marrieta Brew Appiah-Oppong

 

 

The discussions, organised by the Ministry of Finance and Economic Planning, offered the government, private sector players, financial institutions and development partners a common platform to discuss the creation of an effective framework for the fund.


The introduction of the Fund, which is captured in the last budget, aims at ensuring a robust preparation, execution and management of infrastructural projects required to enhance the growth of the economy.

Meanwhile a five-member GIF Advisory Committee, chaired by Mr. Ato Ahwoi, has been formed to, among other things, facilitate the drafting of a legislative instrument on the Fund to be tabled before Parliament for consideration.

The meeting, attended briefly by Vice President Kwesi Amissah-Arthur, discussed, a number of critical areas for the framework of the GIF such as its investment objectives, as well as its legal, governance and operations structure.

Seth Terkper the finance Minister, in setting the tone for discussions, explained that the establishment of such a fund, was critical in view of the need to mobilise adequate resources to improve the country’s infrastructural base urgently required for economic growth.

That, he said, would enable the nation to reduce and effectively manage its external debt since the fund would reduce government’s reliance on foreign loans for the execution of projects.

With regard to the possible sources of funding the Fund, he, apart from the contribution from the Valued Added Tax, the Petroleum Revenue Act would be reviewed to contribute to the GIF.

He gave the assurance that the fund, to be used to support projects in both the public and private sectors, would be independently managed in a transparent manner.

Measures according to him, were being taken to avoid shortfalls in the implementation of other public funds, adding that effective financing sources would be developed to ensure its sustainability.

“There is need for synergy between the GIF and other funds, as well as commercial facilities.
“We believe that between two to five years, we would be able to demonstrate that we are a country that can use smart mechanisms to effectively manage our debts,” the Minister assured.

Satheesh Sundararajan, Director of Public-Private Infrastructure Advisory Facility (PPIAF) at the World Bank, sharing global perspectives on infrastructure funds, urged Ghana to ensure that “there is a pipeline of well prepared projects” to be supported by the fund.

He noted that the absence of well planned projects had made it difficult to ensure efficiency in the management of such a fund.

“GIF could be very helpful to Ghana’s infrastructural development agenda,” he said, and urged the government to adopt the best financing options for the fund.

Dr. Anthony Akoto Osei, ranking Member on Finance in Parliament, for his part, lauded the initiative, saying it would help to address the problems of project financing.

To avoid the mistakes of the past, he stressed the need for properly planned projects to be supported by the fund, adding that without well thought out projects, it would be difficult to mobilise resources for the fund, while the GIF could also be misused.

“We need to develop our capacity in project preparation,” he said.    
end

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