Gov't requests GHS312m from CBG for some state Institutions

Government has moved to prevent some State Institution from defaulting on salary payment for workers.

It has therefore requested a credit facility of 312 million cedis from the Consolidated Bank of Ghana CBG over the next six months for these institutions.

Ken Ofori Atta in a letter is requesting the MD of CBG to assist seven state-owned institutions with the financial support

Ghana Civil Aviation Authority, Ghana Aipiort Company, Tema Shipyard, STC, Metro Mass, Ghana Technology College and Ghana Institute of Public Administration. 

This should cost the bank some 52 million cedis for each month which will translate into about 312 million over the next six months.

Covid-19 : State-Owned Enterprises to cut down expenditure by 30%

Government has directed State-Owned Enterprises SOEs to cut down on their expenditure by about 30 percent.

With this directive, bonuses, allowances and other entitlements will be scraped off for workers of State-Owned Enterprises.

18 out of 28 SOEs are projected to lose in excess of two billion cedis by the of the year due to Covid-19.

Director-General of the State Interests and Governance of Authority Stephen Asamoah Boateng figures shows that most of these enterprises cannot meet their revenue targets.

This was found through the impact of COVID-19 assessment done by the government.

“The first-quarter figures show that we were going down and that is when we started revising the notes and then, of course, the President also gave the indication that we all have to look at the plan B and how we revise our notes and Cabinet obviously have to look at all the enterprises cutting down and rejoined their programmes so we have to engage them in what we call the impact of Covid-19 assessment, we met all of them and we could see that they are all dropping in revenue.”

He disclosed that the expenditure will be cut down by 30%

“We have been looking across board about 30% cut down, we are just in the second quarter so manage accounts are yet to come in I have seen like three so you can’t use three to generalised.”

Areas mainly to be affected will be bonuses, allowances and salary increments but he said there have been no discussion on layoffs.

Some areas where there were bonuses awarded are going to suffer, where increases in salaries may also be affected. In terms of job cut not really, I haven’t had any of my SOEs coming back and projecting cut in jobs but in terms of the bonuses and allowances we are looking at cutting some of them to be able to manage within our limit of resources