2019 in review; the big stories in Business

The business and financial sector recorded some big developments within the year 2019, most of these developments were up for discussion on both traditional and social media.

Below are some of the big issues discussed from the business and financial sector.

1. GN Bank demoted to savings and loans

The Bank of Ghana (BoG) demoted GN Bank to a savings and loans company.

This was after the central bank finished what it describes as the banking resolution requiring each commercial bank operating in the country to have a minimum capital of ¢400 million.

BoG Governor Dr Ernest Addison announced the demotion at a news conference on Friday, January 4, 2019.

 

2. SSNIT increases pensioners benefit by 11 percent

The Social Security and National Insurance Trust (SSNIT) increased the monthly pensioners benefit by 11 per cent for this year.

The increment was done in consultation with the National Pensions Regulatory Commission (NPRA) and in accordance with Section 80 of the National Pensions Act, 2008 (Act 766).

In view of this, pensioners on the 2018 minimum monthly pension of Gh₵276 will now receive a minimum monthly pension of Gh₵316.73, while the minimum monthly pension for all fresh pensioners from January 2019 has been pegged at Gh₵300.

3. EOCO freezes Nam1’s accounts, tasks regional reps to identify more assets of Nam1, MenzGold

The Economic and Organised Crime Office, EOCO, froze the accounts of the CEO of MenzGold Nana Appiah Mensah also known as Nam1.

According to media reports, EOCO on Tuesday, January 15, 2019, froze the accounts of the embattled CEO of MenzGold Nam1.

EOCO on Wednesday, January 16, 2019, file an application at the court to allow them to go after the assets of Nam1, regional representatives of EOCO were also tasked to identify other assets of MenzGold and the CEO Nam1.

4. Ken Ofori Attah asked me to resign: Former Deputy BoG Governor reveals

Former Second Deputy Governor of the Bank of Ghana, BoG, Dr Johnson Asiama revealed that he was asked by the Finance Minister Ken Ofori Attah to resign from his position.

Responding to assertions that he resigned from the BoG due to his involvement in the Menzgold saga, Dr Johnson Asiama in a press statement said:

“I was called and asked to resign from office by the Finance Minister, Hon. Ken Ofori-Atta, and the reason he gave me that day was that the President wanted to appoint his own person in my place. It never had anything to do with Menzgold whatsoever. The rest is history”.

Dr Asiama was reacting to an alleged statement made by a Vice Chairman of the NPP, Omarie Wadie that Dr Asiama contributed to the Menzgold saga while in office forcing him to resign BoG boss.

5. Accra ranked 62nd most fashionable city in the World

The capital of Ghana, Accra was ranked the 62nd most fashionable city in the World by Global Language Monitor, a US-based company that tracks trends through language use worldwide.

Accra made its debut appearance on the 2018 top 63 list of most fashionable cities in the world. Other African countries on the list are Johannesburg, South Africa at 48th and Lagos Nigeria at 60th position.

According to Global Language Monitor, “the current rankings now include 63 fashion capitals. There are three new fashion capitals from West Africa: Accra, Ghana; Dakar, Senegal; and Lagos, Nigeria. There is one new fashion capital from East Asia: Kuala Lumpur. There is one new fashion capital from the Middle East: Beirut, Lebanon. Before the various insurgencies in the region, Beirut was known as the Paris of the Middle East.”

6. NIC announces new capital requirement for Insurance companies

The National Insurance Commission, NIC announced new minimum capital requirements for insurance companies in the country.

A statement from the NIC signed by Commissioner of Insurance, Justice Yaw Ofori said, " The new Minimum Capital Requirements for the insurance industry will help strengthen the balance sheets of regulated insurance entities, thereby enhancing their underwriting capacity, make resources available for investment in essential technology and the development and distribution of appropriate products which will help increase insurance penetration.

"lncreasing the Minimum Capital Requirement is only one of a number of steps being taken by the NIC to develop a robust insurance industry. Other steps include improving strengthening the regulatory framework, implementation of Risk Based Supervision and solvency requirements, strengthening risk management and Corporate Governance structures and practices within the industry and thus improving the claims payment culture."

7. Power Distribution Company takes over ECG 

PDS assumed the assets and management of the ECG after it was selected by the Millennium Development Authority (MiDA) through a bidding process.

The Power Distribution Company was expected to inject 580 million dollars into the operations of ECG over a period of five years.

Part of this money will be used to set up a bulk electricity power station at Pokuase in the Greater Accra region. This power station, according to MIDA could supply reliable power to almost half of Accra.

PDS was also expected to improve power distribution and also cut down on waste. The new company will also be required to improve revenue generation of the company to make the national power distributor a reliable entity that can use its financial statement to raise bonds.

 

8. Ghana ranked 69th best country in the world, South Africa best on the Continent

Ghana was ranked the 69th best country in the World by annual research of a marketing company Y&R and the Wharton School at the University of Pennsylvania.

The annual Best Countries rankings is a joint project by digital news service US News & World Report, marketing company Y&R and the Wharton School, a business school at the University of Pennsylvania.

It ranked countries based on perceptions about Adventure, Citizenship, Cultural Influence, Entrepreneurship, Heritage, Movers, Open for Business, Power and Quality of Life.

9. Ghana receives €40m grant from EU

Ghana received a €40 million grant from the European Union aimed at promoting investments and job creation.

The financing agreement which is the last programme to be signed from Ghana’s indicative allocation of €323 million under the 11th European Development Fund and National Indicative Programme spans between 2014 and 2020.

The Programme focuses on the areas of business climate, public financial governance and employment and its main objectives are to promote domestic and foreign investments enable businesses to spearhead economic transformation and create employment.

10. Parliament approves GH₵2 billion GAT sovereign guarantee

Parliament approved the issuance of a Sovereign Guarantee of up to GH₵2 billion in favour of Ghana Amalgamated Trust (GAT) Limited.

GAT, a special purpose vehicle (SPV) backed by the government, was incorporated in December 2018 to raise up to GH¢2 billion and invest in five indigenous banks.

The aim was to rescue the five indigenous commercial banks that failed to meet the BoG's minimum capital requirement of GH¢400 million.

The beneficiary banks are the state-owned ADB Bank and the National Investment Bank (NIB). The rest are Universal Merchant Bank (UMB), Prudential Bank and OmniBank, which is merging with Sahel Sahara Bank.

11. Vice President, Bawumia outlines 10 points to improve Ghana's business environment

Vice President Dr Mahamudu Bawumia outlined 10 measures introduced by various Ministries, Departments and Agencies over the past nine months in an effort to improve Ghana’s business environment.

According to Dr Bawumia, “these reforms are a further demonstration of the government’s commitment to removing the obstacles that have long kept businesses in Ghana from reaching their full potential. We aim to unleash the Ghanaian entrepreneurial spirit and open our doors to the world”.

12. Gov’t announces reduction of Visa fees

Minister of Foreign Affairs and Regional Integration, Shirley Ayorkor Botchwey announced that the government has taken a decision to review downwards, Visa fees charged by Ghana’s mission in the United Kingdom (UK).

The decision, which is expected to be replicated across Ghana Missions around the globe seeks to boost trade, investment and tourism.

She made the announcement when addressing a section of the Ghanaian community as well as the diplomats and business communities at the anniversary celebration of Ghana’s 62nd Independence in London.

13. Bank mergers: OmniBank, Sahel Sahara now OmniBSIC

OmniBank Ghana Limited and Sahel Sahara Bank Ghana limited (BSIC) merged into a new bank named Omnibsic.

The two banks now operate under the merged name Omnibsic. The merger was necessitated in their bid to meet the meet the Bank of Ghana’s new minimum capital requirement of 400 million cedis.

An official statement released by the merged bank stated that “This merger represents a pooling of the expertise of the two major banks with strengths in various banking services to provide more opportunities, increase access and make the merged entity attractive to the banking public”.

14. Ghana, 4th fastest growing economy in Africa – IMF

Ghana was expected to become the fourth fastest-growing economy in Africa this year, according to the International Monetary Fund (IMF).

The West African country is expected to hit 7.6 per cent Gross Domestic Product (GDP) growth rate, from the projected 6.3 per cent GDP in 2018, the IMF said, adding “Ghana is an economic powerhouse in West Africa with a GDP size of approximately $51 billion.”

Oil-rich Libya is expected to become the fastest growing economy in Africa with a GDP growth rate of 10.8 per cent this year. The North African country currently has a GDP of over $50.95 billion.

Ethiopia and Rwanda, which was the first and second fastest-growing economies in Africa in 2018, are expected to grow at 8.5 per cent and 7.8 per cent respectively this year, making them the second and third fastest-growing economies for 2019.

The IMF in its recent global report projected a 7.6 per cent GDP growth rate for Ghana in 2019, 6.3 per cent in 2020 and 6.1 per cent in 2021 respectively.

15. Cedi Falls to Record low as Foreign Investors Shun Ghana Bonds

Ghana’s cedi slumped to a record against the dollar after a dovish tilt by the nation’s central bank reduced the appeal of fixed-income assets, sapping foreign-investor demand for the country’s bonds.

The cedi has weakened 11 per cent in 2019, the most among more than 140 currencies tracked by Bloomberg after the central bank unexpectedly cut its benchmark rate in January and signalled more easing may be in store. Out of the 2.1 billion cedis ($393 million) of two-year and longer-dated maturities sold by the government through Jan. 31 this year, foreign investors bought just 6.3 per cent, according to data from the Central Securities Depository Ghana Ltd. That compares with more than 30 per cent in 2018.

“Declining capital inflows from offshore demand for the country’s cedi bonds, coupled with maturities not being rolled over, will affect foreign-exchange supply on the market going forward,” Gaimin Nonyane, a senior macroeconomic specialist at Ecobank Group in London, said by phone. Companies stocking up on dollars before transferring earnings in March also weighed on the cedi, she said.

16. NCA revokes Expresso's operating licence

The licence of Kasapa Telecoms Limited, operators of 028 numbers under the Expresso telecom brand, was revoked since March 15, 2018.

"Consequently, Kasapa Telecom Limited is not licensed to provide any telecommunication services in Ghana," according to a This is contained in a response from the National Communications Authority (NCA) to Adom News on the current status of Expresso.
The NCA is, therefore, advising holders of 028 numbers to port to other networks if they wish to keep their numbers.

17. KIA Terminal 3 gets $30m oil money

About $30 million of the funding required for the construction of the newly built Terminal Three of the Kotoka International Airport (KIA) was sourced from oil revenues.

The figure, which represents 12 per cent of the total funding of the $250 million project, was from the Annual Budget Funding Account's (ABFA’s) allocation to the Ghana Infrastructure Investment Fund's (GIIF’s) in 2016. The remaining was sourced from Africa Development Bank and Development Bank of Southern Africa (DBSA).

The Chairman of the Public Interest and Accountability Committee (PIAC), Dr Stephen Manteaw, disclosed this at a workshop by the Institute of Financial and Economic Journalists (IFEJ) and German Development Corporation (GIZ) in Koforidua in the Eastern Region on February 16.

He said the new terminal, which had become a tourist attraction for many travellers, received $30 million allocations from the oil proceeds.

18. Ghana Maritime Authority CEO Kwame Owusu resigns

The Chief Executive Officer of the Ghana Maritime Authority, Kwame Owusu resigned. His resignation comes after Mr. Owusu was accused of financial misappropriation at the company.

He was alleged to have superintended over questionable expenditure at the authority, including spending a million cedis to renovate his official residence.

Government subsequently instituted a probe into the matter. But Transport Minister, Kwaku Ofori Asiamah revealed the report of the probe is yet to be completed. He told journalists at the meet the press encounter Tuesday that Mr. Owusu resigned having attained the age of 65.

19. Vodafone appoints first Ghanaian CEO

Vodafone Ghana appointed Mrs. Patricia Obo-Nai as its new Chief Executive Officer (CEO) with effect from 1st April 2019.

Patricia is a member of Vodafone Ghana’s Executive Committee and is the first Ghanaian to be appointed CEO of Vodafone Ghana.

An Engineer by profession, she comes into her new role with 22 years of experience in Information Technology (IT) and Telecommunications. In addition, she has extensive commercial experience in the telecommunications industry.

Until her appointment, Patricia was the Director of Fixed Business and Customer Operations of Vodafone Ghana. She also led the company’s Consumer Business Unit. Patricia joined Vodafone Ghana as Chief Technology Officer and a member of the Executive Committee in January 2011. Prior to that, she had worked for 14 years with Millicom Ghana Limited, operators of Tigo.

20. GCB sacks ex-UT, Capital Bank workers for "failing" SSSCE, WASSCE

GCB Bank terminated the contracts of 56 ex-staff of defunct UT and Capital Banks for not possessing the minimum qualification required to work with the bank.

The termination of their contracts was done after an audit of employees of the defunct banks exposed issues with the minimum qualification of about 160 staff.

The affected staff have since been issued with “termination of appointment” letters signed by the Head of Human Resources, Kojo Essel Junior.

21. Transport Ministry to review law banning motorbikes (Okada) for commercial use

The Transport Ministry was considering a review of the law that bans the use of motorbikes (Okada) in the country for commercial purposes.

For the past five years motorbikes popularly known as 'okada' has been used for commercial purposes in the capital, Accra and some part of the country.

The use of these motorbikes is mostly because of the increasing vehicular traffic situations in Accra. But the road traffic regulation is against the use of motorbikes for commercial purposes in Ghana.

22. Four new airlines to join local aviation space; Aviation Authority hints

The Ghana Civil Aviation Authority hinted that by the close of the year (2019) four new airline operators will join the local aviation space.

Speaking to Joy FM, Director of the Civil Aviation Authority Simon Allotey said this will bring about a more competitive local aviation industry. Currently, in Ghana, only three domestic airlines are serving the market, Africa World Airlines, Unity Air and Passion Air.

"We are likely to get about four more operators coming on stream by the end of the current year and the implication is we will have a very fierce competitive environment."

23. BoG to start circulation of upgraded cedi notes 

The Bank of Ghana (BoG) from May 6, 2019, begun circulation of its enhanced GHc10, GHc20, and GHc50 notes.

The Bank of Ghana said both the old and the new cedi notes will be used concurrently until the old ones are phased out.

New features on the new notes include a gold stripe, a watermark, a security thread and a colour changing spark live.

Per the new upgrade, the cowrie shell on the GH₵10, the star on the GH₵20 and the cocoa pod on the GH₵50 will now have a shiny line in them which will move up and down when tilted.

That feature is called Optically Variable Magnetic Image. Another new feature is the New Enhanced Security Thread.

24. SEC warns public against Loom pyramid scheme

The Security and Exchange Commission, SEC Ghana cautioned the public to be wary of the risks involved in investing in Loom Pyramid Scheme and Golden Empire Legacy Limited.

According to SEC, these entities are not licenced by the appropriate authorities.

In an interview with Citi FM, Director-General Daniel Ogbarmey Tetteh further cautioned the general public to be wary of risks to their investments.

“We have received some notice through the usual channels by which people notify us of these schemes and we will follow our usual due procedure in advising clients. But it is important for investors to always ask questions and one important question is to find out the underlying investment because when somebody promises a high return and further states that the return is guaranteed, it means that there is high risk involved,” he said.

25. Ghana, Cote d’Ivoire to meet cocoa buyers in Accra 

Ghana and Cote d’Ivoire on Tuesday, June 11 had a two-day meeting in Accra with buyers, processors of cocoa beans from all over the world to discuss proposals of setting a minimum price for the cocoa bean produced by the two countries.

The meeting was necessitated by the fact that the two countries only get US$6 billion annually in the US$100 billion-dollar chocolate industry despite producing about 60 percent of the world’s cocoa needs.

The two countries last year unveiled plans to coordinate cocoa production and marketing as part of efforts to exert more control in the market after price volatilities in recent years.

A tonne of cocoa, according to the International Cocoa Organisation, is being sold in excess of US$2,390 on the world market. The goal of the two-day meeting is to discuss the possibility of agreeing to a minimum price which is enough to keep the cocoa farmer in business.

Cocobod has said it has always taken the hit when the price of cocoa slumps on the world market as it is unable to push the price drop to the cocoa farmers. Hence, its collaboration with Cote D’Ivoire to agree to a floor price will not only safeguard the farmers’ investment but the interest of the two countries.

26. Ghana now the leading producer of gold in Africa

South Africa’s struggling gold industry has suffered yet another humiliation, losing its status as a continental leader to Ghana.

The country that led global gold production for a century and extracted about half the bullion mined to date is now Africa’s second-largest gold producer.

The output is shrinking as operators capitulate to stubbornly high costs, regular strikes and the geological challenges of tapping the world’s deepest mines.

Meanwhile, Ghana, a country whose gold-mining industry dates back to the 19th century, is benefiting from lower-cost mines, friendlier policies and new development projects.

27. Gov't appoints 3 new GRA commissioners

Government made three new appointments at the top management level of the Ghana Revenue Authority (GRA).

The GRA commissioners are Mr Ammishaddai Owusu-Amoah, Acting Commissioner for Domestic Tax Revenue Division; Colonel Kwadwo Damoah (Rtd), Acting Commissioner, Customs Division and Ms Julie Essiam, Acting Commissioner, Support Services Division.

A statement issued by the Ministry of Finance on Sunday said the three have been appointed in line with the new changes being made at the Authority aimed at mobilizing revenue.

In line with that, the new appointees are expected to drive a number of critical transformational changes including modernising and digitising tax processes and systems as well as increase the quality of tax payer services.

28. BoG revokes licences of 192 insolvent microfinance companies

The Bank of Ghana revoked the licences of some 192 insolvent microfinance companies.

In addition, licences of another 155 insolvent microfinance companies that have ceased operations has been revoked.

BoG in a statement said these actions were taken pursuant to section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a bank or Specialised Deposit-taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent or is likely to become insolvent within the next 60 days. Consequently, the Bank of Ghana has appointed Mr. Eric Nipah as Receiver for the specified institutions in line with section 123 (2) of Act 930.

29. New oil blocks : ExxonMobil, BP withdraw bids

US oil giant, ExxonMobil and British Petroleum (BP) pulled out from bidding for oil blocks in Ghana, in the ongoing Licensing Bid Round.

The two International Oil Companies (IOCs) had earlier submitted applications for direct negotiations for block 5 and 6 but pulled out at the embers. It is not clear yet why the two multinational companies decided to pull out at the last minute.

The government, through the Energy Ministry, earmarked six oil blocks for exploration.

Three of the blocks-2, 3 and 4-were to go through a competitive bidding process while two blocks-5 and 6-were supposed to be for direct negotiations.

One of the blocks was reserved for Ghana National Petroleum Corporation (GNPC).

 

30. Accra : Another attack on Nigerian shops at Opera Square

Ghanaian traders at Opera Square in Accra locked up shops of their Nigerian counterparts in the market.

Some Nigerians in the market have accused the Ghana Union of Traders Association, GUTA being behind the lockup.

But information according to Citi FM indicated that the Ghana Electrical Suppliers Dealers Association is rather behind the exercise.

31. BoG to announce new minimum capital requirement for Mobile Money

The Bank of Ghana (BoG) indicated that they will announce a new capital requirement for all institutions engaged in mobile money operation.

BoG said existing firms that are already offering the service will be given some time to meet the new requirement while new entrance will be expected to meet the requirement before receiving their licence.

Speaking to Joy FM on the sidelines of the Ghana Most Respected CEO Breakfast forum organized by the BFT newspaper, the Head of Payment Systems at the Bank of Ghana, Dr. Setor Amediku said, "The banks that we talked about which also want to come into the payment ecosystem will also have to be authorized because they already have our licence and they need to set up separate subsidiary to do that and these subsidiaries have to be capitalised, a minimum capital requirement which the BoG will soon come out that if you want do mobile money business you will need to come up with some money, which will be deposited in BoG as way of guarantee to ensure that you are fit and proper to do the business."

32. PURC approves 8.01% increment for water tariff

The Public Utilities Regulatory Commission (PURC) approved an 8.01 percent increment in water tariff, effective July 2019.

At a press conference, the Executive Secretary of the Commission, Maame Dufie Ofori, highlighted the factors that have necessitated an increment in these tariffs including the dollar to cedi rate, projected inflation rate and increasing electricity and water demands.

"In arriving at this decision the PURC took into consideration several issues key among them are the following; the ECG PSP process, projected inflation rate, Ghana-US dollar exchange rate, cost of operation of utility companies and projected electricity and water demand for the 2019/2020 tariff period, as mandated by law and in compliance with the commission's tariff decision making process, extensive stakeholder consultations were held to solicit views and gather inputs for the final determination of the tariffs."

33. GCB Bank sued for attempts to sack workers over WASSCE results

A GCB Bank memo indicated that some clerical staff of the bank, have secured a court injunction on attempts to sack them because they did not obtain credits in English and Mathematics in their WASSCE, prior to their employment.

The GCB Bank memo, dated May 13, 2019, and titled “Report of Pre-tertiary Certificates of 2017 Clerical New Hires” was from the Human Resource Department of the bank to the Deputy Managing Director, Operations.

According to the GCB Bank memo, out of 434 employed in the 2016/2017 season, only 277 had credits in both English and Mathematics, but 141 did not make a credit in either or both subjects, while five (5) failed to submit any WASSCE certificates and 10 submitted only Mature Entrance Exams Results.

34. PURC announces new electricity tariff

The Public Utilities Regulatory Commission (PURC) approved an 11.17% tariff increase for electricity effective July 1.

PURC explained in a press release that the increase is for the recovery of total electricity revenue requirement for the regulated electricity market.

“In taking the above decisions, the Commission received and considered tariff proposals from stakeholders including the following utility service providers in the electricity and water sectors: Volta River Authority (VRA), Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), Power Distribution Services (PDS) Ghana Limited, Northern Electricity Distribution Company (NEDCo) and Enclave Power Company Limited (EPC).

35. NIC announces new minimum capital requirements for insurance companies

The National Insurance Commission, NIC announced new minimum capital requirements for insurance companies in the country.

A statement from the NIC signed by Commissioner of Insurance, Justice Yaw Ofori said, " The new Minimum Capital Requirements for the insurance industry will help strengthen the balance sheets of regulated insurance entities, thereby enhancing their underwriting capacity, make resources available for investment in essential technology and the development and distribution of appropriate products which will help increase insurance penetration.

"lncreasing the Minimum Capital Requirement is only one of a number of steps being taken by the NIC to develop a robust insurance industry. Other steps include improving strengthening the regulatory framework, implementation of Risk Based Supervision and solvency requirements, strengthening risk management and Corporate Governance structures and practices within the industry and thus improving the claims payment culture."

36. SSNIT calls for review of contribution rate

The Social Security and National Insurance Trust (SSNIT) called for a review of the contribution rate of workers to enable it to sustain the pension scheme and to pay workers higher pensions.

Currently, the contribution rate is 13 percent of basic salary but SSNIT wants it reviewed to 19.2 percent.

At the Volta Regional forum in Ho to discuss issues related to pensions, benefit computation, among others, the Director-General of SSNIT, Dr. John Ofori-Tenkorang, said there was the need for a discussion on what the correct funding rate should be for the scheme.

The forum was organised by the Trade Union Congress (TUC) in collaboration with SSNIT. Participants were taken through practical details of how to estimate their pensions.

Dr. Ofori-Tenkorang said the benefits that pensioners received as compared to the contributions they make showed that there was a chance that SSNIT might not be able to meet its obligations in the future especially when more and more pensioners come on board.

37. Video : Aggrieved members storm Zoe Outreach Embassy church to retrieve locked-up investment

Aggrieved members of the Zoe Outreach Embassy at East Legon on Sunday, June 16 stormed the church to demand their locked up investments.

According to them, they were convinced by the founder and leader of the Zoe Outreach Embassy church, Pastor Kelvin Kwesi Kobiri to invest with EL Real Estates and Tikowrie Capital; but have not been able to withdraw their dividends or principal since November 2018.

The aggrieved members, who disrupted church service briefly at Zoe Outreach Embassy, claimed the leader of the church, Pastor Kobiri, who owns the two entities.

Some of the members who spoke to Joy FM claimed it has become a nightmare even getting to speak to Pastor Kobiri.

According to a member, who claimed to have invested GH¢500,000 with EL Real Estates, Pastor Kobiri introduced them to the entities during one of his services.

He said he chose to do the investment because he trusted the Pastor.

Another who claimed to have invested a million Ghana cedis into the two entities said: “We want our money because you call him [Mr. Kobiri] and he does not pick your calls and when he does he will only insult you. He has become very arrogant after taking our money.”

38. GOIL, Shell adjust fuel pumps to cheat customers

GOIL and Shell were among several filling stations identified by the Ghana Standards Authority (GSA) to have adjusted their fuel pumps to cheat customers.

This was discovered after the Ghana Standards Authority (GSA) carried out unannounced inspections of fuel pumps at randomly selected fuel stations in the Greater Accra, Central and Eastern Regions.

The stations which were found to be cheating customers are the Shell station at the Motorway Extension; Total at McCarthyHill in Accra; GOIL at Mile 11; Frimps Oil at Tetegu junction; GOIL at Galilea; and Frimps Oil on Spintex Road.

The rest are Glory Oil on the Spintex Road; Allied Oil at Sakaman; Shell at Amanfrom West and Goodness Energy at Kasoa.

Two other companies, Galaxy Oil, Spintex Road and Agapet, Spintex Road were found to have broken the GSA seal without permission.

39. PDS used forged document for concession deal - Peter Amewu

Minister for Energy John Peter Amewu said investigations conducted by the government has established that a document that was presented by Power Distribution Service (PDS) as a guarantee for the takeover of Electricity Company of Ghana (ECG) was forged.

The minister explained that even though the document indicated that a company in Qatar has guaranteed for PDS, the management of the company told the government it had no knowledge of the document.

Speaking to Citi FM, Mr. Amewu stated that the government will prosecute anyone found to have engaged in the fraudulent act.

"Now the investigation that has been conducted through due diligent processes have established that the payment guarantee that was submitted by PDS to ECG for some reasons, the word fraudulent has been used in it, and the quasi executing authority denied ownership of such document and therefore I have written to ECG to announce that we had nothing to do with this document and if there should be any liability we not be responsible, that document is considered null and void by the purported executing authority which is in Qatar..."

40. Mid-year budget review : Gov't withdraws luxury vehicle tax

Minister for Finance announced that the government of Ghana has decided to withdraw the luxury vehicle tax introduced in the 2018 national budget.

Speaking on the floor of parliament on July 29 during the mid-year budget review, Ken Ofori Atta said per the suggestions from the general public on the implementation of the tax, the government has decided to withdraw it.

"Mr. Speaker, Review of Luxury Vehicles Levy: Government in 2018 introduced the Luxury Vehicles Levy to raise revenue. We have noted suggestions from the general public on the implementation of this tax and Mr. Speaker, as a listening Government, we are proposing to the House, the withdrawal of the levy. We will continue to improve compliance, expand the tax net and explore other innovative sources of raising revenue."

Under the law vehicles with engine capacity above 3.0 Litres are charged fees ranging from GHS1,000 and above. The law has been criticized by car dealers and vehicle importers, arguing that it has increased their cost of doing business.

41. Telecom Chamber reacts to 50% increment of Communication Service Tax

The Chamber of Telecommunications Ghana said the increment announced by the Finance Minister for the Communication Service Tax comes as a surprise to them.

Ken Ofori Atta during the 2019 mid-year budget review disclosed that government has increased the Communication Service Tax from 6 to 9 percent.

According to him, the increment will develop the foundation for the creation of a viable technology ecosystem in the country .

Reacting to the announcement by the Finance Minister on Citi FM, CEO for the Telecom Chamber, Kenneth Ashigbey said "There is normally a tax dialogue where the Ministry of Finance, the GRA and a lot of taxpaying entities where will all seat together but this do not happen before this year's mid-year review so for us it just came as a surprise, we were not expecting communication services tax to go up especially for this government that has been pushing the digital agenda and for you to be able to do this what is required is telecommunication services and it impacts on everybody in the economy, by increasing CST bare in mind last year based on the re-engineering of BAT and the two levies and all of that there was an increase of the taxation on consumers and you are going to slam this on them?

"If you are not careful because the demand for telecommunication is not inelastic if you not careful the maximum return on this increment might not......so you might not raise the additional tax that you want....," he added.

42. Gov't defends appointment of new GRA Board Chair

The Deputy Information Minister Pius Hadzide defended the appointment of Kwame Owusu as the new Board Chairman of the Ghana Revenue Authority (GRA).

According to him, the appointment of Kwame Owusu as Board Chair for GRA is based on his excellent track record in his previous position at the Ghana Maritime Authority.

Speaking to Citi FM, Mr. Hadzide described the president’s decision as a good one adding that Mr. Owusu will no doubt outperform in his new position.

“If you go and check the track record of the gentleman in question, during his time at the Ghana Maritime Authority, his track record was quite impressive. The facts speak for themselves. In 2016, that organisation was making loses, revenue was about some GHc64 million and their expenditure was about GHc72 million. When Mr. Owusu assumed office in 2017, they made a revenue of GHc99 million and expended GHc66 million thereabout. The organisation was turned around into a profit-making organisation,” he said.

 

43. AU accepts Ghana's bid to host Continental Free Trade Area secretariat

The Executive Council of the African Union accepted Ghana’s bid to host the secretariat of the African Continental Free Trade Area (AfCFTA), a source within the Ghanaian delegation at the ongoing AU Summit in Niamey, Niger has said.

According to the source, the decision has been recommended to the Heads of State and Governments for approval on Sunday, July 7.

Leaders at the African Union summit in Niger will also set a date for trading to begin in the African Continental Free Trade Area, a deal that 52 of the continent’s 55 states have signed, although only 25 have ratified it.

The bloc aims to ultimately remove trade barriers and tariffs between members.

The agreement is aimed at creating a single continental market for goods and services with free movement of goods, people and investments, similar to the European Union.

This is expected to eventually unite the continent’s 1.27 billion people and its $3.4 trillion nominal gross domestic product.

 

 

44. ICAG sanctions 4 auditors over bank closures

Four auditing firms of the seven banks that collapsed in 2017 and 2018, were sanctioned by the Institute of Chartered Accountants, Ghana (ICAG).

The four, Ernst and Young, Deloitte, PFK and Morrison & Associate, have been sanctioned for non-compliance with auditing standards.

The sanctions followed the completion of an enquiry into the role of the auditors in the collapse of the seven banks in 2017 and 2018.

Whilst the Bank of Ghana (BoG) in 2017 approved the GCB Bank Limited’s acquisition of the good assets of UT Bank and Capital Bank, through a Purchase and Assumption Agreement, the remaining five banks were placed under receivership by the BoG in 2018.

The five collapsed banks, uniBank, Sovereign, Construction, Beige and Royal were put together to form the Consolidated Bank of Ghana (CBG) in 2018.

45. Menzgold is not a ponzi scheme - NAM1

CEO of Menzgold, Nana Appiah Mensah, NAM1 refuted claims that the activities of the company is a ponzi scheme.

Addressing the press on August 19 in reactions to the numerous concerns that have been raised against his company, NAM1 said the company is not a ponzi scheme but just an innovative drive.

Explaining further why he thinks their operation is not a ponzi scheme, NAM1 said, "Menzgold is not a ponzi scheme, now the gold collectible trade is a platform that we created and I mention innovation when I was speaking so we own the proprietory to a gold trading platform it a platform that has a lot of buyers, and a lot of sellers with their gold collectibles we only own the platform so it just like Accra Mall for example who have a product you want to sell you don't know where to find a buyer and so you go to the Mall and apply for a space just so you can bring your product and sell, a customer owns his gold collectible comes to Menzgold and say i want to trade my gold collectible on your platform because the platform is ours so we need to get paid and this is why they pay us commissions, so the pay for commission we accept and give them receipt narrating the transaction history on the receipt then we accept the gold and sign a contract, it's the contract that regulates our relationship and in the contract which states what to be done in case of breach after we put the gold on our platform, it then meet a buying lead somebody buys it we make profit of having accepting the commission and we also make a profit on the customers gold that they have placed on the platform, becuase the contract says we should pay them returns at the end of the month....."

46. Licences of 23 savings and loans companies revoked by BoG

The Bank of Ghana, BoG revoked the licences of twenty-three (23) insolvent savings and loans companies and finance house companies.

The central bank in a statement on Friday said the revocation of the licences of these institutions has become necessary because they are insolvent even after a reasonable period within which the Bank of Ghana had engaged with them in the hope that they would be recapitalized by their shareholders to return them to solvency.”

“It is the Bank of Ghana’s assessment that these institutions have no reasonable prospects of recovery, and that their continued existence poses severe risks to the stability of the financial system and to the interests of their depositors,” the statement added.

BoG in the statement explained that the actions “were taken pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent. The Bank of Ghana has also appointed Mr Eric Nipah as a Receiver for the specified institutions in line with section 123 (2) of Act 930.”

47. ECG, PDS agree on interim operational modalities

The Electricity Company of Ghana (ECG) and the Power Distribution Services (PDS) have both agreed on some modalities to ensure that there is no disruptions in power supply and service delivery to Ghanaians.

In a statement, jointly-signed by Ing. Samuel Boakye-Appiah, MD of ECG and Rev. Ing William Hutton-Mensah, CEO of PDS, Power Distribution Services both companies have agreed to allow PDS to carry on with “all activities related to electricity retail sale.”

According to the statement PDS will be responsible for meter reading, billing, distribution of bills, bill reconciliation, revenue collection, and new service connections.

PDS will also undertake disconnection exercises, replacement of faulty meters and networks, repair works as well as attend to complaints and fault reporting to the call centres.

“In light of the above, all payments and other related activities shall continue to take place at PDS Regional and District offices, PDS existing Customer Service Centres, PDS licensed vending stations, PDS operated Cash Points and banks,” the statement added.

The companies in the statement indicated that the arrangement “shall be in force from 8th of August, 2019 until the reversal or otherwise by the Energy Commission.”

48. Year of Return : Revenue up by 60%

The Year of Return launched by President Akufo-Addo increased patronage and revenue at most tourist sites in the country.

According to the Ghana Museums and Monuments Board, tourist sites has seen a rise in patronage and revenue this year under the Year of Return initiative.

Acting Director for the Board, Kingsley Ofosu in an interview with Joy FM said revenue this year is up by 60%.

"This year it's superb especially with the year of return, the patronage that we having this year is unprecendented and our revenue increased by 60%, in July we had over 10,000 tourists in Cape Coast alone, in August we had aboout 8,000 Elmina, so if someone tells you that patronage is going down the person does not know what he or she is talking about..."

49. BoG announces new minimum capital for Mobile Money

The Bank of Ghana announced a new minimum capital for mobile money companies in the country.

The directive came on the back of the recently passed Payment Systems and Services Act, 2019 (Act 987) which provides a legal and regulatory framework for the orderly development of the country’s payment system.

The central bank in a notice issued on Thursday divided the payment system providers (PSP) into five categories and provided corresponding capital requirement needed for players to operate within each category.

According to the notice, Electronic Money Issuers (EMI) like mobile money companies are required to have a minimum capital of GH¢20 million.

 

50. Check out the new GH¢100, GH¢200 notes and GH¢2 coin introduced by BOG

The Bank of Ghana, BOG introduced GH¢100, GH¢200 notes and GH¢2 coins in the country’s currency denomination mix.

This was announced by the Governor of the Central Bank, Dr. Ernest Addison at a press conference in Accra on Friday.

Explaining the rationale for the development, the governor said the face value of the cedi compared to the US dollar over the past 12 years had eroded due to sustained periods of high inflation and depreciation.

51. BOG to reduce salaries of MDs, CEOs of banks

The Bank of Ghana, BOG disclosed that they were planning to reduce salaries of Managing Directors and Chief Executive Officers of banks in the country.

The move according to BOG it to cut down on the huge salaries of Managing Directors who are not performing to satisfaction.

Reacting to a question after announcing the new policy rate yesterday, Governor of the Bank of Ghana, Ernest Addison explained that one of the benchmarks of reducing the salaries will be the number of loans a bank has given out and collected or not collected.

"As you can see, this is a recent decision, we've looked at the operational cost of the banks, if you look at the cost of operation of the banks you will see where the inefficiencies are coming from, and we think it's about time we sit down and have a conversation to ensure that CEOs that are reporting all this high amount of ..... are not being compensated in excess in some of the results that they are achieving, let's bring some equity into the system so this is early days yet but it's an idea that we have thrown out and as part of the processes after every MPC, we have a meeting with the Ghana Association of Banks and i believe with the meeting that is on Wednesday we will go through the details of all of these with the stakeholders....."

52. No more upfront CST deductions

Telecommunication companies in the country from Tuesday, November 26, 2019, stop the upfront deduction of the Communication Service Tax (CST).

In a statement, the Telecommunications Chamber said it will complete the reconfiguration of its systems to accommodate the commercial and technical requirements for the cessation of the deduction next week to bring respite to consumers.

Currently, customers are charged the 9% CST instantly when they top up airtime.

53. Ghana’s debt stock hits ¢208.6b

Ghana’s debt stock as at the end of September 2019 stood at ¢208.6 billion.

This was contained in the November Bank of Ghana’s summary of financial and economic data released after the Monetary Policy Committee met this week to review the ” health” of the economy.

The GH¢208.6 billion total debt stock puts the country’s Debt-to-GDP Ratio at 60.3 percent ending September. ¢107.2 b of the debt came from loans taken from outside the country by government, this is about $ 20.1b

This constitutes about 31.1 per cent of the total value of the economy.

Domestic debt stands at ¢101.4 b representing 29.4 per cent of the total value of the economy.

Rate of increase since last year September 2018

 

 

 

 

SEC revokes licences of 53 Fund Management companies