Friday, November 13, 2015

GRA INSISTS ON SUBAH DEAL

By William Yaw Owusu
Thursday, November 12, 2015

The Ghana Revenue Authority (GRA) has urged telecommunications operators in the country to continue to cooperate with Subah Infosolutions Ghana Limited to generate revenue.

The authority reminded the telecoms companies of their obligation with Subah under the Communication Service Tax (Amendment) Law (Act 864, 2013).

Subah’s mandate
Subah’s contract that allows it to do real time monitoring of telcoms sector billing systems for revenue assurance on behalf of the GRA is being threatened, as National Communications Authority (NCA) has asked Subah to acquire a license or face sanctions.

The NCA directive appears to have started what can be described as ‘cold war’ between the Ministry of Finance, which has supervisory jurisdiction over GRA on one hand and the Ministry of Communications and the Attorney General on another.

NCA Directive
Matters came to a head when NCA’s new Director-General, William Tevie, wrote a letter titled, ‘Operating without license from NCA’ on October 30 to Subah requesting them “to cease operations in the telecoms sector by Thursday, November 12, 2015 or face legal sanctions.

According to the NCA, when it assessed the GRA-Subah Contract, it came to the conclusion that Subah needed a license.
NCA therefore gave Subah up to November 12 to get a license or face a ban.

Afriwave Connection
The NCA, which is attempting to put Subah out of contract, is busily introducing Afriwave Telecoms Ghana Limited to the telecoms operators.

A letter written on November 4 and signed by the Deputy Director-General of the NCA, Albert Enninful, formerly introduced Afriwave Telecoms Ghana Limited to the telecoms operators as the licensed entity to carry out real time monitoring of international traffic.

"Kindly note that Afriwave Telecom Ghana Limited has been licensed by the NCA pursuant to its regulatory mandate to carry out international monitoring of traffic and you are by this letter directed to permit them to have their probes attached to your respective systems.

"It is our expectation that all operators in the industry will extend the necessary support and cooperation to Afriwave Telecom Ghana Limited to enable them carry out their obligations,” the letter said.

GRA adamant
The GRA, in a rebuttal, wrote to the telecoms companies on November 5, ‘congratulating’ them on their cooperation with Subah so far and asking them to continue to do so in accordance with the law.

The letter, signed by the Commissioner of GRA George Blankson, insisted that inasmuch as companies assigned by GRA to audit hospitals for revenue purposes do not need a license from the Ghana Medical and Dental Council (GMDC), Subah also does not need a license from NCA to monitor revenue generation from the telecoms sector.

The GRA informed the telecoms companies that if they obstruct Subah, they risk being a fine of about five percent of their revenue based on the last audit.

Tacit support
In a tacit support for the GRA, a Deputy Minister of Finance, Cassel Ato Forson, in October 2015 wrote to the telecoms companies to ignore any NCA directives and continue to cooperate with Subah because its work was under the direct purview of the ministry through GRA.

A source at the Ministry of Finance told BUSINESS GUIDE that Subah generates about GH¢87 million for the GRA through real time monitoring of telcoms sector billing systems every month for the country.

On the other hand, the Attorney-General and Ministry of Communications, appear to support the NCA agenda.

The AG indicated that the Subah contract the state approved was not the same being implemented currently.



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