‘Mining Coys Not Responsible For Dev’t’

By Esther Awuah

Nana Prah Agyensaim VI, Omanhene of Assin Kushea has stated emphatically that mining companies are not solely responsible for undertaking developmental projects in areas in which they operate.

He noted that Corporate Social Responsibility (CSR) has become a form of escapism for politicians who do not perform their duties, thereby inciting inhabitants of some communities to revolt against the mining companies.

He said “mining companies are always expected to build schools, clinic, roads and all manner of things. If people expect mining companies to provide all these things, what then is the duty of government?”

He indicated that even though mining companies undertake CSR projects, it does not mean they are mandated to do so.

He added that “it was about time the Ghana Chamber of Mines state clearly to government that mining companies are not the government. When the government is aware of that then it can come down to the level of the ordinary  person and explain things to them.”

Nana Prah Agyensaim was speaking at the 2^nd Mining for Development forum organized by the Ghana Chamber of Mines on the theme, ‘Mining for Development: Thinking outside the box.’

The Omanhene also noted that irrespective of their contribution towards national development, mining companies were constantly being bashed for no reason.

“If they get the bashing even from the unfortunate rural illiterates, one could understand it. But sometimes the government, who is supposed to know better rather does that.”

He therefore called on the Chamber to be more proactive in executing its mandate.

“The Chamber of Mines has in the past been too friendly with the government. They must begin to recognize that they are there to serve the interest of mining companies,” Nana Prah Agyensaim emphasised.

In advising mining companies, Nana Prah Agyensaim said “mining companies are managing a commodity that cannot be replenished. They therefore have a morale duty to ensure a different form of replenishment – which is educating and training young men and women in their host communities with employable skills.”

Dr. Toni Aubynn, Chief Executive Officer (CEO) of the Chamber of Mines, in his presentation, said the perception held by most Ghanaians that the country was not benefitting enough from its mineral wealth was wrong.

He said “we are the second leading producer of gold on the continent after South Africa, but most Ghanaians think the country is not getting a fair share of the resource. This can be attributed to the lack of knowledge and understanding of how the industry operates.”

He noted that despite the huge taxes that mining companies pay to government they were committed to ensuring that host communities and the country as a whole benefit from the rich resource.

The forum, which attracted civil society groups and stakeholders in the mining industry, created the platform for discussions on issues related to mining and proposed alternative solutions with the aim of positioning the mining industry as a catalyst for development.     

‘Stop Privatizing SOEs’

By Esther Awuah

Ekow Afedzie, Deputy Managing Director of the Ghana Stock Exchange (GSE) has stated that the common practice whereby government sells it shares in non-performing State Owned Enterprises (SOEs) must be avoided.

He suggested that such companies should be allowed to raise capital by listing on the stock exchange.

“The agenda the Securities and Exchange Commission (SEC) and GES have been trying to sell to government is not to necessarily privatize SOEs by selling its shares, but allow these companies to go raise capital from the stock market probably through bonds. It achieves the same thing,” Mr. Afedzie noted.

Speaking at the media launch of the 2012 Capital Market Week, Mr. Afedzie indicated that one of the key objectives for setting up the Stock Exchange in 1990 was to use the market to privatize SOEs but only a few companies have listed on it.

“Since the establishment of the GSE, we have not had more than 10 SOEs being privatized through the stock exchange. It is sad to hear SOEs collapsing because it is mainly state. We heard about the State Transport Company (STC) -  if they had gone public some years ago, I am sure they would have had some private investors or shareholders in it, and we would not have seen what is happening today.”

He therefore called for a paradigm shift where policy makers would consider reviving non-performing SOEs through the stock exchange.

Adu Anane Antwi, the Director General of the SEC, who launched the week’s celebrations, also stated that instead of using pension funds from the National Pensions Regulatory Authority (NPRA) for equity investment the corporate bond market should rather be developed.

He stated that “strictly speaking, pension funds should not be invested in equities because of the risky nature of equities; pension funds will normally invest in fixed income securities where you can budget for the incomes that you are going to receive each year and therefore you know your cash flow.”

He therefore emphasized that “the key areas that pensions will have to develop for us are the bonds market therefore we must develop our corporate bond market to make sure that we have investment products for this pension funds.”

The week celebrations will commence on 29th October 2012 and end on 4th November 2012.

EU Enforces Illegal Logging Ban

From left: Kojo Owusu Agyemang, Claude Maerten and some participants interacting after the conference

By Esther Awuah
The European Union (EU) will from March 2013 halt the importation of illegal timber into European countries.

This follows the introduction of the EU Timber Regulation (EUTR), which seeks to reduce trade in illegal logging and prohibit the importation of illegal timber into the EU market.

Head of EU Delegation to Ghana, Claude Maerten disclosed this when he addressed representatives from West and Central African countries who attended a regional conference on illegal logging in Accra.

He noted that “much is being done within the EU, both by the relevant authorities and the private sector to ensure that each has made the necessary preparations to meet this deadline.”

In 2003, the EU adopted its Action Plan on Forest Law Enforcement, Governance and Trade (FLEGT) with the aim to halt illegal logging and promote better governance.

The main tool to implement the Action Plan is the negotiation and conclusion of Voluntary Partnership Agreements (VPA) between the EU and a Partner Country.

To date, in West and Central Africa, the EU has signed VPAs with five countries (Cameroun, Central African Republic, Ghana, Liberia and Republic of Congo) and is negotiating with two countries (Democratic Republic of Congo and Gabon),
It has also introduced the VPA in Cote d’Ivoire.

The three-day conference, which started from 23rd October to 25th 2012, brought together about 130 stakeholders involved in the implementation of the VPA process who will share their experiences and discuss the successes and unique challenges of negotiating and implementing VPA in the region.

In his address, the Deputy Minister of Lands & Natural Resources, Kojo Owusu Agyemang noted that poor forest governance is the root cause of the degradation of the forest estates in the world and Africa.

“Ghana’s objective for entering into the VPA remains unchanged. We seek to take advantage of this market lever, the support from our traditional partners and the limelight that is given to forest governance issues, which particularly ensures that only legal timber enters our domestic market and the EU market.”

He reiterated government’s commitment to enforce VPA and noted that “currently, a Timber Resource Regulations has been passed to provide legal backing for the implementation of the VPA.”

SMEs List March 2013

Ekow Afedzie Deputy Managing Director, Ghana Stock Exchange

By Esther Awuah

Small and Medium-scale Enterprises (SMEs) are expected to list on the Ghana Stock Exchange (GSE) by the end of the first quarter of 2013.

“With the approval of rules, procedures and structures by the Securities & Exchange Commission (SEC), we are just getting ready to launch the new market by the end of the first quarter of 2013,” Ekow Afedzie Deputy, Managing Director of GSE disclosed.

He stated that the new market, to be known as the Ghana Alternate Market, is going to be different from other security markets.

“All the requirements and obligations have been relaxed for this particular market in order to groom and entice SMEs to get a little more transparent.”

Mr. Afedzie, who was speaking at the media launch of SEC’s 2012 Capital Market Week in Accra, said SMEs needed a minimum capital of GH¢250,000, stated capital post flotation, a minimum of 20 shareholders and listing fee of GH¢2,000.

Explaining why the GSE failed to launch the market this year as announced earlier, the Deputy Managing Director explained that “because we want this market to succeed and help expand the fortunes of smaller companies, we had to take our time in outlining the rules and requirements, hence the delay.”

He noted that through the Ghana Alternate Market SMEs would be given the platform to grow and create employment opportunities while growing the economy.

Adu Anane Antwi, Director General of SEC, who officially launched the week, educated the public on the capital market and the benefits the economy could derive from the market to create wealth.

The capital market deals in stocks, bonds, and other long-term investments.

Touching on the theme for the celebration, “Capital Market: An Investment Avenue for Securing Your Future Financial Well-being,” he said it was to emphasize the importance of the capital market as a provider of investment opportunities.

The week celebrations will commence on 29thOctober, 2012 and end on 4th November, 2012.

Staff of SEC and some market operators will embark on outreach programmes in selected tertiary institutions in six regional capitals - Accra, Kumasi, Sunyani, Koforidua, Cape Coast and Takoradi when the celebrations kick off.

CSO Demands Sipa-Yankey's Head

By Esther Awuah

The Civil Society Platform on Oil & Gas has asked George Sipa-Yankey, Chief Executive Officer (CEO) of the Ghana National Gas Company (GNGC), to step aside for investigations to be conducted into his stewardship.

According to the group, Sinopec International Petroleum Services Corporation (SIPSC), a subsidiary of the Sinopec Group, which is constructing the gas processing plant at Atuabo in the Western region, has overpriced the project while GNGC remains indifferent.

“The SIPSC is delivering a processing plant that is costing $40 million more than another plant which is considered superior by virtue of having five additional features including specifications that are favourable to the Volta River Authority (VRA),” Dr. Steve Manteaw, chairman of the group, stated at a press conference in Accra.

He said “SIPSC has overpriced the materials for both the power plant and pipes by building hidden costs purportedly occasioned by an arrangement with SIPSC’s special purpose subsidiary offshore firm called SAF Petroleum Investments (FZE), registered in Dubai.

“Under the arrangement, SAF will make the initial procurement and resell the items to SIPSC. Meanwhile, the same person – Ms Yang Hua serves as Project Director for both SIPSC and SAF.”

The gas project would cover the processing of gas from the Jubilee Oilfield into clean fuels and feedstock for the domestic and export markets while promoting the development of the country’s petrochemical industries to eliminate the flaring of gas.

A visit by CITY & BUSINESS GUIDE to Atuabo recently showed that pipes were being laid from the processing plant to the Takoradi Thermal Plant at Aboadze to meet the December deadline for the commencement of the first phase of the project.

Dr. Manteaw stated that attempts by the Petroleum Commission and the Ministry of Energy to obtain details of the transactions entered into by GNGC and Sinopec were thwarted by its Chief Executive Officer, Dr. Sipa-Yankey.

He said his outfit called for investigations “because of the huge costs being recorded relative to the gas project and their ramifications for gas pricing when the project is completed.

“We believe that by the singular act of investigating these allegations of fraud and impropriety at Ghana Gas, the President will be sending a strong signal to the skeptics that his government is serious about fighting corruption,” Dr. Manteaw emphasised.

The group is also calling on Parliament to take immediate steps to call for the GNGC-SINOPEC deal to be laid before it for debate and possible ratification in order to streamline GNGC’s activities.

It appealed to authorities to restructure GNGC as a subsidiary of the Ghana National Petroleum Corporation (GNPC) under the Ministry of Energy’s oversight.

“This is important not only for tapping into GNPC’s technical expertise and years of experience but also for enhancing the corporate profile and industry leverage of GNPC. Again, even though the GNGC has been incorporated, its mandate is not clear as the GNPC by law and by the Jubilee contractual arrangements owns the gas reserves with the international partners, and is expected to develop and transport gas to onshore facilities.”

Reacting to the statement, Kwesi Botchwey, Board Chairman of GNGC, said every act of procurement by the GNGC had been done in strict accordance with the country’s procurement laws and in compliance with the company’s own internal regulations regarding the thresholds for board approval, as it pertains in all companies in both the public and private sector.

“The allegations of impropriety in procurement practices, and the talk of so-called “transfer pricing” by the project contractor Sinopec are allegations that the board of Ghana Gas has thoroughly discussed and found to be without merit or substance.”

Dr Botchwey continued: “I am aware that there are some who would have preferred to have one company exercise dominion over the entire oil and gas industry from upstream, midstream and downstream and preferably be responsible also for regulating the entire industry.”

According to him, “Dr. Manteaw of the Civil Society Platform sounds very much like the hireling and advocate of these vested interests. But if per chance I am wrong and Dr. Manteaw’s group is truly interested in constructive debate, Ghana Gas will be more than happy to debate them publicly.”

He indicated that Ghana Gas was studying the group’s statement and would issue a more detailed response if need be.

Ghana’s Oil Production Increases

By Esther Awuah
Ghana’s oil production is expected to inch up from the current 80,000 barrels a day to 90,000 by the end of the third quarter of 2012, representing a 6 per cent increase year on year.

According to Renaissance Capital’s latest research report made available to CITY & BUSINESS GUIDE, it still sees an upside for oil production over the next four quarters given that it is projected to peak at 120,000 barrels per day in 2013 by Tullow Oil.

Earlier last week, the Operations Manager of the Jubilee Partners, Robert Gettka, told journalists in Takoradi that oil production would increase from 66,000 barrels a day to 86,000 barrels a day.

He stated that the increase was partly due to the successful oxidation exercise which was carried out to boost production.

Oxidation is the process of involving the injection of acid into wells to facilitate the oil flow to the surface or onto an oil platform.

Renaissance Capital’s report further projected that stronger growth from the extractive industry in the second half of 2012 barring any hitches in the gold mining sector.
“This is positive for the industrial sector, which we expect to remain supported by robust growth in construction activity.”

However, according to the report this growth is expected to be undermined by a poor showing from the manufacturing sector in the third quarter of 2012 due to another shutdown at Tema Oil Refinery related to the breakdown of critical equipment.

On the services front, business services’ growth is also expected to remain robust.

It is also anticipated that election-related spending would support the services growth in fourth quarter of 2012.

The report stated that “we maintain our Growth and Domestic Product (GDP) growth projection for Ghana of 8.5 percent in 2012 however we think downside risk to this has increased.”

Geospatial Incompetence Robs Ghana

Aida Opoku-Mensah

By Esther Awuah
Ghana risks losing its natural resources if policy makers and indigenes do not make conscious efforts to utilize geospatial technology to monitor its resources.

According to Aida Opoku-Mensah, Director of the United Nations Economic Commission Africa (UNECA), the technology, which was being underutilized by African countries, could impact the use of natural resources.

She indicated that “one of the reasons why we have not been able to harness geospatial technology is because our policy makers do not typically understand the strategic role it plays in the development context.”

She noted that “the fact that we know there is oil in the Jubilee Fields, and that we have mineral resources means geospatial technology was being used. But the critical question is whether we are in control of how this technology is used to monitor and survey where our natural resources are.”

She said some African countries do not know how much oil is being produced per day from their shores because there is no due diligence and application of geospatial technology by the indigenes of that country.

Geospatial technology or geomatics is the technology for visualizing, gathering, storing, processing and delivering geographic or spatial information.

Ms Opoku-Mensah emphasized that “it is high time we got politicians, legislators and planners to have a holistic approach to the use of technology to countries’ advantage.”

She stated this during a day’s workshop on Geospatial Science and Technology in Accra for about 30 journalists in Accra.

The event, which was organized by the Africa Media Forum for Geo-information Systems (AMFGIS) in collaboration with UNECA and the International Institute of ICT Journalism (Penplusbytes), was under the theme, “Harnessing Geospatial Science and Technology for Socio-economic Development – The Role of Ghanaian Media.”

The workshop was aimed at educating journalists on the use of Geospatial Information in the newsroom by focusing on topics such as Introduction to Concepts of Geospatial Technologies, Case Studies of Geospatial Information Systems (GIS), Applications in Ghana with special emphasis on how to generate compelling stories.

Kwami Ahiabenu, II Co-Chair of AMFGIS stated that “Geospatial science and technology have a lot of opportunities to stimulate Ghana’s socio-economic development and journalists have an important role to ensure increased awareness of these opportunities and the workshop is coming at a right time in this direction.”

AFAG Cautions MTN

• As Network Apologises

Dr. Nana Ayew Afriye, A Member of AFAG

By Esther Awuah
The Alliance for Accountable Governance (AFAG) has expressed its disappointment at MTN Ghana over its failure to provide uninterrupted service to its subscribers.
The group noticed with grave concern the calling lapse, unreliability and connectivity problem of the leading telecommunication group in Ghana, MTN.

“It is more than a great disservice to Ghanaians to go through such an ordeal against the fact that the service sector and MTN in particular are making a giant and bountiful leap in their business endeavour.”

AFAG therefore warned “MTN to immediately make themselves available to Ghanaians and respect the good people of Ghana.”

In a statement signed by Dr. Nana Ayew Afriye, Davis Opoku Ansah, Bright Acheampong, AFAG indicated that “MTN with all their touting performance in quality and customer service delivery is not acting to the expectation of their consumers and customers, and has not explained the source of the difficulties and when the challenge will be over.”

It noted that “the attitude of MTN in disregarding the problems of the consumer and leaving their fate to the near distant future is not only an insult to the intelligence of their consumers and customers but also a wanton disregard for the rules that mandate them to give uninterrupted quality and reliable service to their consumers and customers.”

The group emphasized its commitment in ensuring that Ghanaians are given value for money in terms of customer satisfaction.
“Again where basic customer service and its ethics are thrown to the wind, AFAG in times like these will not hesitate to stand by Ghanaians in our pursuit and right to quality service.”

Meanwhile, MTN has apologized to its prepaid subscribers for the inconvenience caused them as a result of disruptions in the network in the past few days.

A public announcement issued by the telecommunications giant indicated that “MTN wishes to apologize to its cherished prepaid subscribers across the country some of whom are experiencing difficulties in making and receiving calls.”

MTN noted that its “technical team is currently working to ensure that full services are restored as soon as possible.”

Judges Trained On Maritime Laws

Dr. Kofi Mbiah, CEO of Ghana Shippers Authority

By Esther Awuah

The 8th Maritime Law Seminar for Judges of the Superior Courts has opened in Accra with a call on judges to broaden their horizon and position themselves to meet challenges in the maritime industry.

“It will be imperative for judges to broaden the judicial horizon and increasingly advise on settlement of disputes through alternative dispute resolution methods including conciliation, mediation and arbitration not to mention out-of-court settlements,” Dr. Kofi Mbiah, Chief Executive Officer (CEO) of Ghana Shippers Authority (GSA) stated when he set the tone for the two-day seminar which started from October 11-12 2012 in Accra.

The seminar, which is organized by the GSA in collaboration with Ministry of Transport and the Judicial Training Institute, is intended to update the knowledge of judges on maritime laws and how they could effectively adjudicate cases in that regard.

Dr. Mbiah noted that the challenges of maritime boundary delimitation, piracy and maritime security will open up new fields of legal and judicial enterprise with its attendant legal challenges that judges would have to respond to.

He also stated that the continuing legal education seminars have become important and relevant in view of the rapid changes taking place in the world today.

“Providing continuous legal education has thus become essential, as it affords practicing judges to keep abreast with developments in the law. This is what the maritime law seminar is purposed to achieve.”

He indicated that the maritime law seminar would in 2014 chalk a decade, adding that “on that occasion the GSA will consolidate all the existing material into one legal reference book titled “The Consolidated Admiral- 2005 to 2014” for the benefit not only of judges, members of the bar and students but also researchers who are interested in the development of the law.”

Dr. Mbiah reiterated GSA’s commitment in providing the requisite support to shippers, protecting and promoting their interests and working with all stakeholders to ensure the speedy clearance of goods to reduce the cost of doing business at the ports and to make the Ghanaian shipper competitive in the global shipping arena.

In a speech read on his behalf, the Minister of Transport, Collins Dauda stated that the threat of piracy, oil theft, damage to oil and gas pipelines, maritime accidents and other unlawful acts that have come close to the corridor’s of Ghana are worrisome.

“It is now more than ever that the protection of our maritime zones be heightened. It therefore calls for us to understand our responsibilities, obligations as a sovereign nation to appreciate the nature of our maritime zones,” he said.

He noted that government would stay committed in ensuring that pragmatic measures were put in place to remove all barriers to trade to ensure a speedy cargo clearance process, avoidance of congestion and maintain high security standards at the ports.

“The rapid growth of our trade has brought in its wake a strong realization that the current infrastructure cannot sustain the growth, hence the expansion of infrastructure at the two ports of Tema and Takoradi.”

The seminar was opened by the Chief Justice, Georgina Theodora Wood, who called on GSA to extend the training to lawyers as well.

Fridge Importers Apprehensive

• As Ban Takes Effect

By Esther Awuah

Dealers of refrigerators have expressed their frustration at the Energy Commission for not extending the deadline for the enforcement of the ban on the import of used refrigerators.

Government would from January 1, 2013 ban the importation of old refrigerators which are said to contain dangerous gases that pose health risks and also consume much electricity, which is not only a cost to the individual but the nation.

In an interview with CITY & BUSINESS GUIDE in Accra, Alex Opong Antwi National Secretary of Ghana Association of Importers and Sellers of Used Refrigerators (GAISUR), noted that even though the association made several requests to the Energy Commission and the Environmental Protection Agency (EPA) to extend the deadline for the ban, their request was not granted.

He said “when the Energy Commission informed us that they want to ban the importation of used refrigerators, we proposed five years moratorium beginning from 2010, but they only gave us two years which is certainly not enough for us to prepare ahead of the ban.”

He however noted that GAISUR was in discussions with government to provide certain interventions to assist its members to access credits to venture into the business of selling new fridges.

“Our ultimate aim is to team up with government to provide credit facilities for members, so we can be in the position to sell new refrigerators and also link us with some manufacturing companies who can set up manufacturing plants in Ghana to make it easier and less expensive for us to buy them.”

“Within a month, we would have gotten a manufacturing company who would be prepared to partner us.”

In response to GAISUR’s request, Alfred Ofosu Ahenkorah, Executive Secretary of the Energy Commission, told this paper that talks were underway with a leading refrigerator manufacturer, which would soon set up a factory in Ghana.

He said “in fact we have introduced the association to a manufacturer who is prepared to do business with them to the extent of establishing a plant in Ghana to manufacture their appliances.”

He however called on the association to cooperate with the Energy Commission and its stakeholders to enforce the ban while it works to create an alternative means for them.

“It is not our objective to destroy anyone’s business but at the same time the country risks being fined by the international community if we continue to import these harmful appliances.”

However, CITY & BUSINESS GUIDE learnt that German manufacturer Bosch had submitted proposals to the Energy Commission to set up a plant in Ghana.