News Guide Africa

Category: News

  • Muslims suffering in Ramadan under Bawumia’s economic hardship – Alhaji Naziru

    Muslims suffering in Ramadan under Bawumia’s economic hardship – Alhaji Naziru

    The National Zango Caucus of the National Democratic Congress (NDC) has blamed the financial hardship resulting in the inability of some Muslims to observe the holy Ramadan month on Vice president Dr Mahamadu Bawumia.

    The caucus said it is disappointed in Bawumia– a practicing Muslim and the head of the country’s economic management team– has mismanaged the economy thereby imposing hardship on the average Muslim.

    Alhaji Mohammed Naziru, the National Communications Officer NDC Zango Caucus blamed the high inflation and rise in commodity prices on the free fall of the cedi which ought to have been managed well by Bawumia.

    “Much as they may be external causes to Ghana’s economic crisis, one can not runaway from the profligate and ostentatious lifestyle of the President and his appointees supervised by the first Muslim head of Ghana’s economic management team,” Naziru noted in a statement in which he chronicled the woes of the Muslim during Ramadan.

    “Interestingly, the prices of Oil, Sugar and Rice, (a basic necessity to feed the nation) has so much skyrocketed that an average Muslim dare not attempt to buy,” he added.

    This development, he stated, “is largly due to the weakness of the Ghana cedis against the major international trading currency(USD) under the watch of a Muslim head of economic management team.”

    Below is the statement from the NDC Zango Caucus

    The Woes of a Practicing Muslim under a Muslim Vice President- 2022 Ramadan.

    All too soon, the 2022 Ramadan season is hear with us and every Muslim practicing or not, knows the financial requirements to making a fasting sustainable.

    One of the major campaign messages of the NPP in the zangos has remained the fact that the NPP are the only political party to have a Muslim brother as a sitting vice President and automatic head of the economic management team, this campaign message was executed in Gurg style to let it stuck in the minds of our Zango people.

    The fact that Ghana’s economy is in tatters today is not a classified information since the Government itself has admitted the economy of Ghana is on life support.

    Much as they may be external causes to Ghana’s economic crisis, one can not runaway from the profligate and ostentatious lifestyle of the President and his appointees supervised by the first Muslim head of Ghana’s economic management team.

    This write up seeks only to elucidate the woes of a practicing Muslim under a Muslim head of economic management team and let the cheers fall where they may.

    First of all, the practicing Muslim in Ghana will for the first time since 1992 start the Ramadan fast with a delayed salary, courtesy the negligence of the economic managers making his/her home dry, thus, taking away the euphoria that greets the month of Ramadan and the excitement it brings.

    Under a Muslim head of economic management team, Muslims in Ghana are experiencing a cheater speed inflation to the extent that they have to pay more than 100% more for the same commodities they bought in 2016.

    Interestingly, the prices of Oil, Sugar and Rice, (a basic necessity to feed the nation) has so much skyrocketed that an average Muslim dare not attempt to buy. This is largly due to the weakness of the Ghana cedis against the major international trading currency(USD) under the watch of a Muslim head of economic management team, living the mostly poor Muslims vulnerable.

    Interestingly, Bawumia who is the head of economic management team is known for sharing tons of goodies to secure his bid to lead the NPP. Once again he will move into the Muslim communities with rice and other goodies without ignominy albeit in the form of support to our Muslim folks. But the question is, can the cedi be strong against the dollar if he continues to buy foreign rice? A question to the Muslim Vice President.

    We all witness the cries of our local rice farmers for lack of ready market for their harvest leading to post harvest loses and low returns on investments thus forcing the poor rice farmer out of business.

    In the face of all these glaring danger and in compliance with NPP’s own promise to boost local production, I challenge the vice president of the Republic of Ghana and the head of economic management team to ensure that all the goodies he intends to share as usual in the Muslim community should be “Made in Ghana”, so as to protect our local industry.

    Again, in a rather astonishing circumstances, the Muslim head of economic management team has decided in what can best be described as “target hitting” to introduce the killer E-levy at a time when the entire Muslim community- who’s economic activities are fueled largely with remittances from families abroad- and are looking forward to more remittances to undergo the Ramadan fast, celebrate Eid- fitr and probably pay for Hajj.

    In conclusion, it will certainly not be far fetched to say Muslims in Ghana may suffer more under the prevailing economic circumstances with a Muslim vice President and head of economic management team than they have suffered under a non Muslim head of the country’s economic management.

    I sympathise with all our Muslim brethren who are finding it difficult to fast as a result of no food and to others the high cost of commodities which has been bestowed on us by the Bawumia/Nana Addo Govt.

    We must therefore use this period of Ramadan to pray for Allah’s intervention in the affairs of Ghana.

    I wish all our Muslim brethren a happy Ramadan and I implore all those who have some extra food items to share with the poor.

    May Allah help us to overcome these hardships.

    Thank you

    Alhaji Mohammed Naziru

    Nat. Communications officer NDC Zango caucus

    Zib69@yahoo.com

    0244285223

  • BOST’s “deferred tax obligation” claim beats financial knowledge – finance expert

    BOST’s “deferred tax obligation” claim beats financial knowledge – finance expert

    Adnan Adams Mohammed

    A finance expert has critiqued the press release by the management of the Bulk Oil Storage and Transportation Company Limited  (BOST) to correct a misinformation captured in the SIGA State Owned Enterprises 2020 Report.

    In the said press release, BOST challenged that, the SIGA Report claiming that BOST recorded a loss of GHC400 million was not accurate.  The company claim it rather recorded an operating profit before tax of GHC30million.

    The release issued last week and signed by the Managing Director, Edwin Provencal, indicated that, “the revaluation which was a deliberate decision to enhance the reporting of the company led to a deferred tax obligation of GHC292,935,973 compared to the net loss of GHC291,017,758, a difference of GHC1,918,215 (Appendix 1). The increase in the value of the revalued assets also resulted in increased depreciation charges which further reduced the bottom-line or the profit for the year. But, the ‘deferred tax obligation’ aspect beats the financial reporting knowledge of the finance expert. This led him to ask questions in awe.

    “I don’t understand this analysis, especially, on the unpaid taxes obligation. Is that not illegal?”, the Former Executive Director at Standard Chartered Bank, Alex Mould quizzed in reaction to a part of the press statement of BOST quoted above. “Unless he is talking about timing differences between financial reporting and tax reporting, that is, defered tax liabilities; which I do not think he was.” 

    Mr Mould, also a former CEO of National Petroleum Authority and GNPC further quizzed that, “Investment mark-to-market losses will reflect in impairments. How will you be taxed, that is, asked to make a tax payment for a unrealized gain in any asset revaluation?.”

    Below is the full press statement:

    FOR IMMEDIATE RELEASE

    RE: BOST Records GHC400 Million in Losses-SIGA Report

    April 10, 2022, Accra:

    The management of the Bulk Oil Storage and Transportation Company Limited has taken notice of a series of publications making the rounds on several online portals suggesting that contrary to an announcement by the MD, Edwin Provencal, that BOST has made an operating profit before tax of GHC30million, a report from SIGA indicates BOST has incurred losses to the tune of GHC400 Million.

    We, by this publication seek to correct the erroneous impressions created by the publication and

    wish to set the record straight as follows:

    1. Underlying Business of your company, BOST is PROFITABLE – The report of the GHC400

    million losses made by BOST is not accurate. To measure the profitability and operational

    efficiency of a Business one must determine whether the underlying operations (core business) of the company are profitable.

    The Managing Director in his submission at SIGA was emphatic that the company achieved a

    profit before tax of GHS9,844,673 versus an estimated GHC30million in year 2020 as against

    a loss of GHS158,478,676 in 2019. The positive net profit before tax attained in 2020 implies

    a massive turnaround of the operational fortunes of the company (Appendix 3). This was the

    basis of the MDs assertion at the SIGA engagement buttressed by publications from media

    houses like the Daily Graphic and GNA1. He was however quick to add that, unpaid tax

    obligations over the five-year period to date, the reduction in the value investment in GOIL

    and forex difference on dollar denominated loans MAY turn the profit before tax into a net

    loss for the period.

    This enhanced performance was driven by extensive operational efficiency initiatives

    including, but not limited to massive repair works of our storage tanks, pipelines and marine

    1 https://ghana-news.net2tvgh.com/bost-sets-aside-gh200-million-to-transform-petroleum-sector/assets, replacement of outmoded parts across the facilities of the company in the last two

    years supported by improved marketing and customer service. In the past two years, our

    income-earning assets has improved from 18% to 91%.

    2. Net Loss after Tax – There were several events outside management’s control that impacted

    the overall business negatively thus posting a loss for the year 2020 in the statement of

    comprehensive income (Appendix 1).

    Firstly, BOST as part of its drive towards operational excellence undertook a revaluation of

    its assets in the 2020 financial year. This had become necessary as most of the assets still in

    operation had been written down to near-zero levels whilst still useful in the operations of

    the company. As required by the International Financial Reporting Standards, IFRS, when

    assets are revalued, the increase in their values is taxed resulting in larger tax obligations.

    The revaluation which was a deliberate decision to enhance the reporting of the company led

    to a deferred tax obligation of GHC292,935,973 compared to the net loss of GHC291,017,758,

    a difference of GHC1,918,215 (Appendix 1). The increase in the value of the revalued assets

    also resulted in increased depreciation charges which further reduced the bottom-line or the

    profit for the year. (Appendix 2 – 12d).

    Secondly, BOST owns a 20% stake in GOIL. In any financial year, any loss in the market value

    of shares of GOIL is computed and that reduces the income of BOST to arrive at its net profit

    or loss for the year. In the year 2019 to 2020, our investment in GOIL saw a reduction of

    GHS15,674,525 its market value of. (Appendix 2 – Note 15). Respectfully, this event is

    external to BOST operations and therefore to gauge the performance of BOST management

    and staff by this loss in investment will not be fair. This is the reason why we should rely on

    the profit before tax rather than all these uncontrollable factors which have been factored in

    to arrive at the net profit or loss for the year.

    The recorded net losses for the years 2019 and 2020 per the income statement (Appendix 1)

    attached were therefore GHS101,411,781 and GHS291,017,758.

    3. Your Company, BOST has been turned around – Any comprehensive and objective analysis

    of the audited statements for the past five years (Appendix 3 – 2016-2020 profit before tax

    trend) will show a company on track to higher performance through enhanced efficiency and

    we look forward to capitalizing on these modest improvements to make BOST an example of

    a World-Class State-Owned Enterprise.

    It remains uncontested that the debt to suppliers and related parties of $623 million has been

    paid down to $39 million, the debts owed the local banks of about GHS273 million has been

    fully cleared and our pipelines which were procured in 2011 and left to the mercy of the

    weather in the United States under the AT & V contract have arrived safely on our shores and

    we expect to complete the installation of the additional 12 inch pipeline between the Accra

    Plains and Akosombo depots.

    The cashflow position of the company is enhanced and the repair of the company’s

    infrastructure continues despite the reduction in our BOST Margin.

    In conclusion, we reiterate the fact that your company BOST is on its way to becoming a

    PROFITABLE STATE-OWNED ENTERPRISE and nothing will derail the resolve of

    management and staff to achieve this.

    God Bless Our Homeland Ghana and make us GREAT and STRONG.

    …END…

  • Liabilities of most SOEs more than doubled in 4yrs – Mould

    Liabilities of most SOEs more than doubled in 4yrs – Mould

    Adnan Adams Mohammed

    A former Chief Executive Officer of a State Owned Enterprise, Ghana National Petroleum Corporation, has painstakingly shown keen interest in the SIGA 2020 Report.

    The finance and energy expert, Alex Mould has, thus, summarised the liabilities of the major SOEs in the country to help in critical scrutiny of the performance of the SOEs. In the summary, it was clear that, most of the SOEs more than doubled their arrears payments or liabilities. The heavily indebted were GNPC, Ghana Cocoa Board (COCOBOD) and Electricity Company of Ghana (ECG). These companies have their liabilities exceeding GHC10.0 billion within a period of four years from 2016 to 2020.

    Some critics of the performance of GNPC are surprised why the corporation recorded a net loss of GHC1.6 billion in 2020 after recording a net profit of GHC204 million in 2019. Also, its direct cost, which was GHC2.4 billion in 2019 surged to GHC4.3 billion in 2020, a whopping 78% increase. The critics demand for convincing explanation from GNPC on its performance over the years.

    “GNPC must explain this financial performance at a time when it also spent ₵200M on ‘Corporate Social Responsibility’”, Bright Kwashie Dzokoto, a tax expert and a member of Tx Justice Coalition demanded. “This accountability-free regime must end.

    Below are the highlights of the liabilities:

    1. ECG

    Moved from GHC6.0 billion to GHC15.0 billion in 2016 to 2020. ECG’s liabilities are mainly trade creditors payable to Independent Power Producers (IPPs).

    2.  GACL

    Moved from GHC740 million to GHC2.0 billion in 2016 to2020. These arrears are mainly to banks. 

    3.  COCOBOD

    Here, the liabilities which are mainly bank loans, moved from GHC295 million to GHC10 billion within same period (2016-2020).

    4. GRIDCO

    Liabilities mainly owed to VRA/IPPs and PURC, moved from GHC485 million to GHC1.33 billion.

    5. Ghana Gas

    These liabilities mainly trade payables owed to GNPC, moved from GHC4.8 billion to GHC9.7 billion in 2016 to 2020.

    6.  GNPC

    Their liabilities were mainly in three folds; moved from GHC3.5 billion to GHC11.4 billion. The folds were: mainly trade creditors which moved from GHC237 million to GHC5.5 billion; loans of  GHC1.3 billion to GHC3.0 billion; and advance payment by GoG to Eni for unpaid gas amounting to GHC2.3 billion.

    7. Ghana Water

    The liabilities mainly made up of trade creditors and loans of GHC4.2 billion; jumped from GHC745 million to GHC6.2 billion.

    8.  TOR

    The arrears of TOR increased from GHC3.7 billion to GHC4.6 billion. These was made of mainly Trade Creditors of GHC3.0 billion and loans plus ESLA amounted to GHC1.6 billion.

    9. VRA

    The total liabilities moved from GHC7.5 billion to GHC9.7 billion. These were mainly trade payables which grew from GHC4.2 billion to GHC6.8 billion while its borrowings dropped from GHC3.1 billion to GHC1.0 billion.

  • High ‘cost of doing business’ a major burden to businesses

    High ‘cost of doing business’ a major burden to businesses

    Alex Mould writes

    So,it appears the main burdens for many-  industry and traders – are the following: Interest rates; depreciation of the Cedi; and inflation (which affect demand of most goods).

    The cost of doing business is high – and most of this is  deliberate and orchestrated by the organisations who sometimes deliberately make doing business cumbersome so that the people who work there – together with their middlemen interfacing with the clients – make money by “assisting” the self imposed cumbersome process. 

    Sometimes even the CEO/ head of institution will give you someone to assist you for which that person will charge the client for his/her services – Lands commission, Registrar General, DVLA, passport office, immigration, et al, to name a few.

    To register a company should not cost more than GHC100, but, sometimes costs as much as GHS1,500.

    Maybe this is where we need to focus becos all these really should be in the control of the economic management team, Ministry of Finance and Bank of Ghana.

    We need to identify all the drains on government apart from the bloated employees (currently 890,000 from 640,000 in 2017, most of whom are not engaged at work and most redundant.

    Some of these drains include:

    1.  Procurement abuse and state capture is a big one in Govt and in the parastatals especially

    2.  There are alot of hidden charges we charge the consumer for which I can not understand/fathom:

    PURC, a regulator, has a levy for itself in the electricity price; 

    BOST, a commercial entity, has a levy/margin in the petrol price build up; and

    We have indefinite debt recovery levies, of ring fenced debt, debt which keeps renewing itself. Etc

    A look at the balance sheet if all the SoEs show that collectively they have more than doubled their liabilities (mainly institutional debt) where as some have like CocoBod and GNPC have entered an abyss of perhaps no return which will lead to, perhaps, a GOG bailout, who itself needs a bailout come August when the half year numbers come out

  • BOST challenges GHC400mn lose in SIGA report

    BOST challenges GHC400mn lose in SIGA report

    The management of the Bulk Oil Storage and Transportation Company Limited has taken notice of a series of publications making the rounds on several online portals suggesting that contrary to an announcement by the MD, Edwin Provencal, that BOST has made an operating profit before tax of GHC30million, a report from SIGA indicates BOST has incurred losses to the tune of GHC400 Million.

    Below is the full press release:

  • CBG rejects Ghana Card for financial transactions

    CBG rejects Ghana Card for financial transactions

    Adnan Adams Mohammed

    The Consolidated Bank Ghana, (CBG), has continued to reject the Ghana Card as a medium of identity for customers who want to use it for financial transactions.

    CBG has introduced a verification mechanism that verifies all acceptable national identity cards before admitting those cards for any transactions.

    However, the verification software keeps rejecting these cards as not the true identity of the holders after joining long queues.

    Customers who are even account holders are subjected through this vigorous process and finally get their cards rejected by the machine.

    ‘I am frustrated now and don’t know what to do because, according to them their machine cannot verify my card and I told them I am an account holder, so they should verify my identity through that process to enable me complete my financial transaction but that was declined after spending almost two hours at the bank’, a complain from a customer.

    The Bank of Ghana (BoG) has directed licensed and regulated financial institutions to undertake all transactions with the Ghana Card, effective July1, 2022.

    A statement issued in Accra and signed by the Secretary of the BoG, Ms Sandra Thompson, said the directive was in line with the BoG’s objective of ensuring the safety of the financial system, pursuant to Regulation 7 of the National Identity Register, 2012 (L.I. 2111).

    It said the directive covers financial institutions such as banks, specialised deposit-taking institutions, non-deposit-taking institutions; payment service providers and dedicated electronic money issuers and forex bureaus and credit reference bureaus.

    The statement further directed all financial institutions to take the appropriate steps to update customer records with the Ghana Card, in consonance with Section 30 of the Anti-Money Laundering Act, 2020 (Act 1044) and Regulation 12 of the Anti-Money Laundering Regulations, 2011 (L.I. 1987).

    “For Know Your Customer purposes, the National Identification Authority verification transaction platform will be integrated into the Bank of Ghana’s financial monitoring platform,” the statement said.

    It also said the directive was to “ensure that all financial transactions performed within the ecosystem are linked to one identity and information, and unique codes for the transactions shared with the Bank of Ghana (BoG) to facilitate the identification of initiators/beneficiaries for track and trace purposes.”

    The statement said “Notwithstanding, the objective will include but not limited to transactions by Banks, Non-bank Financial Institutions and Mobile Money Operators (MMOs).”

    “The public is to note that no other form of identification will be accepted for financial transactions in all Bank of Ghana regulated financial institutions after the effective date stated above,” the statement said.

  • Ghana loses over GH¢50m in quarry royalties – MIIF

    Ghana loses over GH¢50m in quarry royalties – MIIF

    The Minerals Income Investment Fund (MIIF) says Ghana loses over GH¢50 million annually in royalties from quarry due to the country’s over-concentration on gold resources.

    The Chief Executive Officer of MIIF, Edward Nana Yaw Koranteng who said this at the opening of the 2022 Ghana Mining Week and Gold Expo in Takoradi said quarry should be giving Ghana around GH¢100 million royalties annually, but Ghana only realised just GH¢ 3.8milllion in 2020.

    “92% of our royalties are coming from gold, so there is a leaning towards gold because that is where we have our most royalties. So, that is the problem. If you look at the quarry sector, it is in line with our economic and infrastructure development. So as far as you have infrastructure and economic development growing, there should be a corresponding increase in its royalties. We are supposed to have about, GH¢100million in royalties annually. In a worst-case scenario, we should have at least GH¢35 million to GH¢ 56 million but in 2020 we had only GH¢3.6 million which means there is a big problem with the quarries“, he said.

    Explaining the cause of the problem to Citi News on the sidelines of the Ghana Mining Week, Edward Nana Yaw Koranteng also highlighted plans to cure the problem.

    “We have identified four main problems with the quarries including invasion by foreigners, underpricing, lack of capital and encroachment by settlers within the catchment of quarries. If we have to expand the royalties net and add value to the quarries sector, then we need to properly strategize. So for me to get GH¢100 million royalties annually from the quarries, there are a few things we are doing now. Thus, we are trying to support the quarry sector by introducing what we call de-risking mechanisms, which is essential to provide guarantees to banks that desire to support the quarry sector“, he added.

    Expanding the scope of mineral resources that can bring more royalties to the state, the CEO of MIIF said if Ghana doesn’t take care, it will even start importing stones anytime soon.

    “Our research shows that there is a huge potential in the other mineral sector. Quarry is one and salt is another. There are only two countries, Ghana and Senegal that have the potential to provide industrial salt, but Nigeria keeps bypassing us to Brazil to bring salt to support their petroleum industry. The potential of salt considering the fact that gold is more finite makes salt much bigger in terms of long-term sustainable value than gold,“ he noted.

    Touching on the relevance of the Ghana Mining Week towards achieving Mining for Sustainable Development, Edward Nana Yaw Koranteng said the Ghana Mining Week is as good as the South African Mining fair which is good in addressing most of the challenges in the Ghanaian mining sector and commended the Western Regional Minister and his team for growing the Ghana Mining Week and Gold Expo.

    The Western Regional Minister, Kwabena Okyere Darko Mensah opening this year’s Ghana Gold Expo and Mining Week which also showcased key mining trends and technology as well as site tours, said the Gold Expo and mining week is gradually positioning the Western Region as the headquarters of responsible mining which is good for Ghana. Kwabena Okyere Darko Mensah who has been the face of the Ghana Mining Week, however, highlighted some achievements of the mining week.

    “If there is any other impact that the Ghana Gold Expo has been able to make apart from its basic objective of ensuring a safer mining environment through responsible mining, it is the project’s ability to draw in those in academia to proffer practical solutions to long-aged challenges bedevilling the mining sector through capacity building and technology… I am happy to report that, as an outcome of the Ghana Mining Week and Gold Expo, Gold Fields Ghana Limited is currently advancing discussions with the University of Mines and Technology, UMaT, for both entities to train community mining companies in the Western Region,” he said.

    The Western Regional Minister also described the coming on board of the Minerals Income Investment Fund’s Small-Scale Mining Incubation Programme, as a complementary step to what stakeholders have been advocating for over the period.

    Meanwhile, Forbes Monaco, an official partner of Ghana Gold Expo and Arum Global partners on Conservation Mine and Reclamation 2022 Awards at the event adjudged the Minerals Income Investment Fund, MIIF, as the BEST FINANCIAL INSTITUTION.

    The citation presented read in part:  “Your ability to support and provide alternative financial mechanisms into the small-scale mining sector will ensure responsible gold supply chain and efficient funding platform for small-scale and community miners“.

  • LEAP beneficiaries to receive arrears as WB supports Ghana with GH¢42mn

    LEAP beneficiaries to receive arrears as WB supports Ghana with GH¢42mn

    The World Bank has released GH¢42 million through the Ghana Productive Safety Net Project 2 (GPSNP 2), to support the Government of Ghana (GoG) to pay two cycles of arrears—75th and 76th cycles—of the Livelihood Empowerment Against Poverty (LEAP) for 344,000 beneficiary households.

    The ongoing global economic challenges, which have been worsened by the COVID-19 pandemic, have increased the economic strain domestically, leading to progressive delays in LEAP payments. This has in turn impacted LEAP beneficiaries, notably the poor and vulnerable, who naturally suffer the most in Ghana.

    “We are happy to support in the interest of beneficiaries to assist the government [of Ghana] with the LEAP payments to avoid eroding gains made over the years and safeguard beneficiary households’ wellbeing and their resilience to shocks. These payments will be completed in April 2022 and will help cushion GoG in the interim as efforts are made to identify and provide sustainable, and reliable funding for the LEAP program and social protection interventions, in general,” sPierre Laporte, World Bank Country Director for Ghana, Liberia and Sierra Leone said, last week.

    The LEAP program is one of the Government of Ghana’s flagship social protection programs, initiated in 2008.

    The program seeks to smoothen consumption of targeted extreme poor households, specifically focusing on the poor within the following categories: orphans and vulnerable children, the elderly (65 years and above) severely disabled, and pregnant women or mothers with children under one year.

    The program also aims to increase access to basic social services like healthcare through the enrolment on the National Health Insurance Scheme, as well as boost human capital by encouraging beneficiary households to enroll their school-going aged children in school.

    Per the GPSNP 2 program design, beneficiary households receive cash grants through electronic payments every two months. The cash benefit sizes differ, depending on how many persons in the household are considered eligible to receive the grant.

    The benefit ranges from GH¢32 to GH¢53 per eligible beneficiary, per month. Over the years, the Government of Ghana has progressively increased the program’s beneficiary reach from 1,645 beneficiary households in a few districts at initiation in 2008, to a current reach of 344,023 beneficiary households in all districts across the country.

    Additionally, Government has demonstrated its commitment to the program’s implementation by progressively increasing its contribution to the program. It is currently funding approximately 80 percent of the total funding of the program, with development partners’ support comprising the remaining 20 percent.

    Particularly within global economic downturns, such as the current one on the back of the COVID-19 pandemic, it will be important for the Government to identify ring-fenced funding to ensure regular payments of social welfare programs. The World Bank remains committed to working with the Government of Ghana, through both technical and financial support, in its agenda to support the poor and vulnerable populations, through needed social assistance programming.

  • 4 arrested in GH¢200k SIM swap fraud in joint EOCO and GAB operation

    4 arrested in GH¢200k SIM swap fraud in joint EOCO and GAB operation

    The Economic and Organised Crime Office (EOCO) in collaboration with the Ghana Association of Banks, has arrested four (4) persons engaged in SIM swap fraud.

    Suspects, according to a representative of the Association of Banks, Mr. Ransford Nana Addo Jnr, were picked up at various locations in the country for colluding and illegally accessing the accounts of some Ghanaians from which they stole various amounts.

    It emerged that they managed to withdraw an amount of about GH¢200,000 in their modus operandi before their cover was blown and subsequently apprehended by the security agency which was working closely with the banks.

    SIM swap fraud occurs when fraudsters obtain a new SIM card from a person’s mobile service provider using the person’s registered phone number.

    The Economic and Organised Crime Office (EOCO) in collaboration with the Ghana Association of Banks, has arrested four (4) persons engaged in SIM swap fraud.

    Suspects, according to a representative of the Association of Banks, Mr. Ransford Nana Addo Jnr, were picked up at various locations in the country for colluding and illegally accessing the accounts of some Ghanaians from which they stole various amounts.

    It emerged that they managed to withdraw an amount of about GH¢200,000 in their modus operandi before their cover was blown and subsequently apprehended by the security agency which was working closely with the banks.

    SIM swap fraud occurs when fraudsters obtain a new SIM card from a person’s mobile service provider using the person’s registered phone number.

    The reported value of fraud for 2020 was GH¢1.0 billion, as compared to GH¢115.51 million recorded in 2019.

    The notable increase in the value reported was a result of high values recorded in attempted correspondent banking fraud (forgery of SWIFT advice).

    Even though the banking sector did not suffer any losses from any of the correspondent banking fraud attempts, it posed a reputational risk to some banks, whose staff were found culpable in two of the three reported incidents.

    Losses incurred as a result of fraud for 2020 stand at GH¢25.40 million, as compared to an estimated loss of GH¢33.44 million in 2019, representing a 24.0% decrease.

    Meanwhile, it is gathered that suspects are due for interrogation and will be arraigned before court later this week on various charges.

    The latest arrest comes months after the Executive Director of EOCO, COP Maame Yaa Tiwaa Addo-Danquah (Mrs) met with Mr. John Awuah CEO of the Ghana Association of Banks to collaborate with them in fighting fraud in the sector that is causing revenue leakages.

    Commenting on the successful operation, the CEO of the Ghana Association of Banks, Mr. John Awuah praised the collaborative efforts with EOCO resulting in the arrest of the fraudsters.

    He cautioned miscreants to be warned as banks were sharing intelligence and have enhanced cooperation with all security agencies, especially EOCO to rid the banking sector of fraudsters.

  • Bring back national shipping line to save the cedi – Freight Forwarders

    Bring back national shipping line to save the cedi – Freight Forwarders

    The Ghana Institute of Freight Forwarders is making a case for the reintroduction of a national shipping line, the Black Star Line.

    According to the institute, this will help bring competition amongst the various shipping lines while helping to address the issue of the depreciating cedi due to significant funds that are repatriated out of the country by these international liners.

    Speaking to Citi Business News, a member of the Ghana Institute of Freight Forwarders Communication Team, Jacob Agyeman said the government ought to prioritise bringing back the national shipping line in the interest of the local currency.

    “Now we have AfCFTA, we can even take advantage of that. The government sets up Black Star line, then at least the transhipment cargoes will be transported by Black Star Line. The advantage here is you create employment for your people. You can even help stabilize this cedi that we are complaining about because most of these multinationals cause capital flight as at the end of the day they send their monies out of the country. If the Black Star line is here, the money stays here because if it makes $1,000,000 or $2,000,000, a chunk of it stays here.  It stabilizes the Cedi against the dollar.”

    He added that the commencement of the operations of Black Star Liine will also create jobs while regulating the sector.

    “I’m sure they may have policies in place, but the implementation is the issue. We must begin to see practicals, they must set it up, and it must work. And I believe this is the best moment for us to revive Black Star lines, create employment for your people, stabilize your cedi, and then create competition so that your people will get quality service. There’s no competition.”

    Ghana has not had a shipping line since the early 90’s when its Black Star Line folded up after some challenges with operating the entity.

    There have been many calls from various stakeholders for a national shipping line across successive governments, but not much has been done yet.