GOVT CHASES NDC GURUS FOR MISSING CARS

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Thursday, August 24, 2017

The debate over how many state vehicles were actually left by the Mahama-led National Democratic Congress (NDC) administration before exiting office is resurfacing.

This follows the acquisition of a tracking device by the current New Patriotic Party (NPP) government to locate all the vehicles that have fallen into the hands of unauthorized persons.

Once the chassis number of the vehicle is entered into the tracking device, it is able to send officials straight to the location where the vehicle is being kept.

Search Warrant

Nana Odeneho Oppong, Director-General in-charge of Transport and Logistics at the presidency, told DAILY GUIDE on Tuesday that the taskforce was going to use all legal means, including application for a search warrant, to retrieve the vehicles.

He said a test run of the tracking device even sent officials to locations in Accra where two Toyota Land Cruiser V8s and Toyota Land Cruiser Prado were retrieved recently.

He said one of the Land Cruisers with registration number GE 2925-14, fitted with special communications gadget and a siren, was parked at the Police Barracks behind the DVLA and the purported owner, a policeman, had been asked to report himself.

Previous Taskforce

Nana Oppong also said the NPP government had disbanded all groups that were pursuing stolen cars in the heat of the transition and has formed a special taskforce made up of the police, military and DVLA officials to go for the stolen cars using the tracking device.

He therefore, advised anybody who might be in what he called ‘illegal’ possession of government vehicle to return it voluntarily or face the music.

Missing Vehicles

The erstwhile NDC government claimed that it left behind 641 vehicles, including saloon cars; but according to Nana Oppong, only 173 vehicles had been officially handed over to him.

Interestingly, he said the cars the NDC claimed it left behind include some 43 saloon cars they sold to officials of the previous government at outrageous prices.

Currently, he said his office is chasing owners of 43 saloon cars that were not supposed to have been auctioned by the Mr Mahama’s administration because those cars were less than two years old as mandated by law and that some of the people who acquired them were not entitled to them.

Official Pursuit

They were all 2015 brands the state acquired but sold to former ministers and appointees at ridiculous prices just after a year, contrary to the policy on the acquisition of government cars.

Former National Security Advisor, Baba Camara for instance, is said to have taken home a 2015 Toyota Camry while Limuna Mohammed-Muniru, a former Minister of Food and Agriculture, got a 2015 Nissan Teana and Nii Lantey Vanderpuije, former Minister of Sports, taking home a 2015 Toyota Avensis.

Documents showed that less than two-year-old Toyota Camry was reportedly valued at GH¢4,000 and all these happened after December 7 last year when the NDC had lost the crucial general election.

Post-Election Sale

A former presidential staffer, Sam Nettey George - who is currently the NDC Member of Parliament (MP) for Ningo Prampram - had said in February that 271 out of 641 vehicles were auctioned to the staffers at the presidency, confirming the earlier reports that some of the state vehicles were missing.

Sam George told Citi FM in Accra, “Now, of this 370, there is a disparity of between 370 and 641. This is because 271 saloon cars were purchased by staffers who had put in requests to purchase their vehicles which were two years and above.”

He admitted that the NDC government sold the vehicles after the December 7, 2016 general election, saying, “You cannot sell the vehicles to the people before the elections. You will only sell after the elections are done and dusted and you know that people are leaving office,” adding, “I can bet you in 2012 very few vehicles were sold between the Mills/Mahama switching into the Mahama administration because it was basically the same party.”

However, Nana Oppong said his office had written to all those involved in the transactions to return the cars in peace, saying, “the taskforce is going all out to retrieve the cars.”

He revealed that they had information that some of the cars were auctioned to automobile firms and other private companies in contravention of the law and added that some former officials had the vehicles and transferred them to other people.

SPIO BLOWING HOT AND COLD

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Thursday, August 24, 2017

Former Trade and Industry Minister, Ekwow Spio-Garbrah, appears to have made a u-turn about the issue of flagbearership of the opposition National Democratic Congress (NDC).

He stated categorically last May that if former President John Mahama contests as NDC flag bearer for the 2020 presidential election, he (Spio-Garbrah) was not going to join the race.

Now that it is becoming increasingly clear that Mr. Mahama wants a comeback after being humiliated at the polls last year, it was expected that the former minister was going to keep his promise of no contest.

Spio’s U-turn

However, the spokesperson for Spio, Kweku Tawiah Ampah, has urged the public to disregard any news that Mr Spio-Garbrah has abandoned his plan to lead the NDC in 2020.

“I can assure you that come 2018, Ekwow Spio-Garbrah will run,” he said on Citi FM in Accra Tuesday, emphasizing that the former minister would contest for the slot, even if former President Mahama decides to make a comeback.

 “Even if he decides to run he should know that he will be contested; that is what is stated. What it means is that we should give the former president a courtesy of either refusing or deciding to run as a respect for his presidency and the fact that he was the leader of the NDC... But this doesn’t mean that Spio-Garbrah will not run,” Mr Kweku Ampah said.

However, before he (Ampah) could land, Spio sent message to the presenter of the programme saying that he had not taken a decision on his presidential ambition, further deepening the confusion.

No Contest

In May Spio-Garbrah did not also give any indication that he was not interested in the contest if the former president was not going to lead the NDC in 2020.

He had granted interview to a private radio station - Radio XYZ - in Accra on Tuesday, May 9, and was later quoted as making a subtle declaration to contest in 2020 but he later reacted by saying it was distorted.

“That’s a premature question for me to answer... All of us appointed by Mahama have great respect for him. We all believe we have to grant him that opportunity,” Spio had told the station, adding, “He” (Mahama) “has the first right of refusal.”

He added, “Let’s work together to fix that car first or the horse that may be lame or whatever allegory people want to use. Once it is done the best driver will be decided. At this state, it is early. Everyone could have leadership potential and I can’t be excluded.”

Distortion

Mr Spio-Garbrah later said on social media platform - Facebook - that his interview had been distorted by the media and that was giving an indication that he might still be in the contest after all.

"Please note slight but important distortion of what I said this morning on Radio XYZ.  I did NOT say I shall run if Mahama doesn't nor did I discuss who is the ‘best person’ to lead the NDC.”

He continued, “I said that all of us Mahama appointees have a great deal of respect for him and so I believe he should be given (as a former president and party leader) the right of first refusal whether to run again.

“However, I noted that he will be contested if he runs. I indicated that there are many people asking me to run but I have advised them both publicly and privately that it is best for all of us to concentrate on repairing the "broken NDC car" or "strengthening the lame horse" (Mahama's allegory) before competing over party leadership hence, my call for us to await the outcome of the Prof Botchwey Committee's work.”

Mr Spio-Garbrah added, “I have no doubt that there will be many distortions of what I said on Radio XYZ, which I have summarized above."

Mahama Puzzle

Some political analysts are of the opinion that should ex-President Mahama succeed in contesting on the ticket of the NDC again but fail to win the 2020 contest, it will further break the front of the opposition party because it will then have to struggle to market a new candidate for 2024.

Others also believe that since President Mahama was humiliated in the December 7, 2016 polls, there was going to be very little chance for him in 2020 - when there is no incumbency advantage.

Lame Horse

Mr Mahama himself has called for a careful re-organisation and assessment of the NDC after its crushing defeat in the 2016 general election, admitting that the party was sick as he likened it to a lame horse.

GLENCORE IN ‘ILLEGAL’ ACTIVITIES

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Wednesday, August 23, 2017

The United Kingdom-based commodities giant, Glencore, is allegedly involved in activities reserved for operators in the petroleum downstream sector, and has been doing so without the required licence.

It has not been licensed by the National Petroleum Authority (NPA) to receive petroleum products for sale, yet has allegedly been doing brisk business in the downstream sector using some Bulk Distribution Companies (BDCs) and others as decoy.

To make matters worse, there is no indication at both the Ghana Revenue Authority (GRA) and the Social Security and National Insurance Trust (SSNIT) that Glencore Energy is fulfilling its tax obligations, DAILY GUIDE checks at both institutions confirmed.

NPA Chase

In June, the acting Chief Executive of NPA, Alhassan S. Tampuli, wrote a strongly-worded letter to Glenacore warning the British firm to desist from its engagements after it had detected that the company was actively engaged in the downstream petroleum activities without licence.

According to the NPA, it had information that Glencore Energy had been importing petroleum products for storage which are subsequently sold to the BDCs, Oil Marketing Companies (OMCs) and bulk customers in the power sector.

No Licence

“We wish to advise that the importation of petroleum products into the country is carried out by companies licensed by the authority (i.e. Bulk Distribution Companies and Oil Trading Companies),” the letter pointed out, adding, “Our records indicate that Glencore has not been licensed by the authority to operate in Ghana’s petroleum downstream industry.

“On the basis of the above, you are hereby advised to suspend any such activities with immediate effect, failing which the authority will have no choice but to take necessary legal action against your company,” the letter concluded.

Glencore’s Reply

The company hit back, denying its engagement in the importation of petroleum products for storage and subsequent sale to the BDCs, OMCs and Bulk Customers.

Its director, Andrew Gibson, said in a response to the NPA’s letter, “Contrary to the information you have received, we do not sell (and have not sold) petroleum products direct to Oil Marketing Companies or Bulk Customers in the power sector in Ghana. We only sell to BDCs in Ghana.”

 According to Mr. Gibson, the NPA “seems as though” it had been provided with “inaccurate information” regarding its (Glencore’s) involvement in the Ghanaian petroleum industry.

NPA Act

DAILY GUIDE understands that the letter the NPA wrote to Glencore Energy was also given to other players like Vitol and Trafigura and the authority had indicated clearly that Glencore’s actions were in contravention of Section 11 of the NPA Act which states that ‘a person shall not engage in a business or commercial activity in the downstream industry unless that person holds a licence for that purpose granted by the NPA.’

In a follow-up interview yesterday with the NPA boss, he claimed the authority had referred the Glencore case to a technical committee, saying that two other companies - Vitol and Trafigura, two foreign entities allegedly involved in the downstream business - were equally written to.  

In Glencore’s response to the NPA, it admitted that it sells products to BDCs by way of In Tank Transfer (ITT) at the Tema Fuel Company’s (TFC) tank farm but DAILY GUIDE checks showed that  Section 32 (1) of the NPA Act prohibits sale of petroleum products, possession of petroleum products in excess quantities rather than for immediate requirements and receiving petroleum products for sale by any person except that such person is licensed under the Act.

BDC Importers

It emerged that Glencore is using the BDCs as the importers but an NPA source insisted that “title to the products at all times remains with Glencore.”

It indicated, “Contrary to Glencore’s position, it is very relevant who holds title. Standard practice is that the products would be held under the buyers/importers throughput contract with the unpaid seller retaining a lien and the storage company issuing a holding certificate.

“If BDCs were indeed the importers, then title should pass to them at the point of discharge at the port and there would be no need for Glencore to store the products in Ghana.”

Throughput Agreement

DAILY GUIDE found out that Glencore’s dealings in Ghana can be traced to the Throughput Agreement it executed with TFC sometime in October 2013; and the preamble provided that ‘Glencore is committed to using a proportion of the tankage capacity at the Terminal for a period of five years for the receipt, storage and throughput of the products…”

TFC is obliged under Clause 5 of the Agreement to make available a certain capacity in terms of storage at the Terminal for the benefit of Glencore and all related infrastructure, support and facilities.

In Glencore’s letter, it admits that it has received petroleum products for sale but Section 27 of the NPA Act shows that storage providers should only provide services to bulk customers and persons licensed for transport and marketing.  

Storage Tanks

Further investigations revealed that under Section 26(1) of the NPA Ac, it is only bulk customers and persons licensed under the Act to market petroleum products who can store products in storage tanks and as it is, Glencore is not licensed to market petroleum products and therefore should not store petroleum products with TFC.

There is also no indication that Glencore incorporated a local company in Ghana, even though the BDCs pay at least $300,000 every year in licensing fees.

There are concerns being raised that Glencore might be profiting illegally from Ghana without paying licensing fees, taxes, registration fees, employing Ghanaians or renting offices in the country.

IBRAHIM MAHAMA CHASED OUT

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Tuesday, August 22, 2017

Angry residents of Nyinahin in the Atwima Mponua District of the Ashanti Region yesterday prevented Ibrahim Mahama, younger brother of former President John Mahama, from going to a bauxite concession granted by his brother’s National Democratic Congress (NDC) congress before it left office.

Heavy duty mining equipment of Engineers and Planners – Ibrahim’s company - were stopped from entering the forest for any mining operation.

The equipment were being taken to the area with intent to mine the bauxite but the District Assembly prevented the drivers from entering the forest.

The District Chief Executive, Williams Darko, reportedly insisted that he was not aware of any permit issued to Exton Cubic Group Limited, owned by Ibrahim Mahama, to mine bauxite and has therefore, prevented the heavy duty machines from entering the forest located near the capital, Nyinahin.

The Forestry Commission has reportedly given Exton Cubic Group Limited the go-ahead to mine bauxite in the Ashanti Region.

Ibrahim’s company was reportedly granted the forest entry permit recently per a letter signed by the commission’s Chief Executive, Kwadwo Owusu Afriyie, aka Sir John.

According to the permit issued on June 20, 2017, Exton Cubic Group’s activities would be restricted to the Tano Offin Forest Reserve in areas like Kyirayaso, Kyekyewere and Mpasaso.

Prior Notice

It is turning out that the Forestry Commission’s letter authorizing Ibrahim’s company to operate was copied to the Atwima Nwabiagya District Assembly which capital is Nkawie, instead of the Atwima Mponua District Assembly at Nyinahin.

As a result, the DCE for Atwima Mponua, who should have been copied, is insisting that he would not allow Exton Cubic Group Limited to start work, especially in view of the recent ban on galamsey and indiscriminate mining.

E&P Machines

Sources say at about 4:30 pm on Sunday, four heavy trucks with the inscription of Engineers and Planners besieged the Nyinahin town and were preparing to enter the Kyekyewere Forest reserve for bauxite prospecting when the DCE stepped in with the police.

Ibrahim’s team told the authorities in the district that they had the permit to operate but the DCE said the assembly had no knowledge of the permit and therefore the police reportedly impounded the heavy duty machines, pending further investigations.

Original Permit

In the original permit copied to the Minister of Lands and Natural Resources, Minister of Environment and Science and other top officers at the Forestry Services Division, the Forestry Commission said Exton Cubic Group Limited was expected to follow strictly environmental guidelines approved for mining in the country.

“The liaison group comprising representatives from relevant state regulatory institutions will monitor, evaluate and submit regular reports on the performance of the company to heads of the various member institutions of the liaison group, including the Forestry Commission,” indicated the permit.

It said the processing fee for Exton Cubic Group Limited is GH¢10,000 per annum and the entry permit was valid for two years.

Court Action

Already, firebrand Brong-Ahafo Regional Youth Organizer of the New Patriotic Party (NPP), Kwame Baffoe aka Abronye DC, has filed a suit against Ibrahim to strip him of the bauxite concession granted to him a few days to the exit of his brother from power.

The suit also cited the Attorney General as a respondent and Abronye wants the Supreme Court to declare that the “mining lease agreement between then National Democratic Congress (NDC) government and the Exton Cubic Group Limited required Parliamentary ratification under Section 5 (4) of the Minerals and Mining Act, 2006, Act 703.”

The then NDC government, acting through the Minister of Lands and Natural Resources, Nii Osah Mills, on December 29, 2016 entered into an agreement and granted Exton Cubic Group Limited mining leases to mine bauxite in different concessions.

Abronye DC wants an order setting aside the mining lease agreements because it is violating Section 5 (4) of the Minerals and Mining Act, 2006, Act 703.

He is seeking a perpetual injunction restraining Exton Cubic and its assigns from prospecting, exploiting or mining bauxite in Ghana pursuant to the mining lease agreements being ratified by parliament.

58% Concession

Recently, an Economic Advisor at the Office of Vice President Mahamudu Bawumia, Gideon Boako, revealed how about 58% of Ghana’s bauxite reserves was sold to Ibrahim Mahama before his brother’s government exited power in January this year.

 “They sold 58 percent on 29^th December 2016 when they were leaving office. The NDC government sold 58 percent of our bauxite concession to the former president’s brother. The one they sold to him, was it possible to mine or not? They should stop this argument,” Gideon Boako asked on Citi FM.

Nii Osah Mills confirmed yesterday that the Mahama regime signed off the bauxite deal to Ibrahim’s company.

Documents sighted by DAILY GUIDE showed that there were two concessions involved, and all were signed on the same date.

The first document shows that the NDC government gave the bauxite mining lease to Exton Cubic Group Limited for 22 years and in the other lease for the same mineral resource, the company was given 18 years lease.

It is unclear the locations of the concessions but DAILY GUIDE understands they are all in the area bordering Central and Western Regions and possibly the Eastern Region.

MAHAMA BOYS HIJACK PARTY

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Tuesday, August 22, 2017

It appears the camp of former President John Dramani Mahama is beginning to subtly take control of the opposition National Democratic Congress (NDC).

With the tacit support of some national executives, the loyalists, made up of mostly former appointees, who served under the ex-president, have succeeded in planting their cohorts in the various committees of the party that is overseeing its re-organization.

Angry Members

The situation has apparently incensed some NDC members of the grassroots who believe that the former president might not be the ideal candidate for the party for the 2020 presidential election.

They are fuming because they claim these same bigwigs have been indicted in the Prof Kwesi Botchwey Committee report.

According to them, Page 26-28 of the report contains names of all those whose actions and inactions caused the NDC’s humiliating defeat to the then opposition NPP last year, and it included some of those being put on sub-committees.

“They have been able to push the former president’s trusted lieutenants to head committee positions for the reorganization exercise, even though this same group of people was mentioned as contributing heavily to our disgraceful defeat on December 7, 2016,” an NDC source said.

Old Faces 

According to the loyalists, Prof. Botchwey’s report had tasked the party’s leadership to assemble persons with ‘unquestionable’ backgrounds to spearhead the reorganization process, but it is turning out that the same old faces are doing the work.

"Former President Mahama is bent on doing everything possible to ensure that he becomes the NDC 2020 flagbearer. He wants to do it without any fierce competition. As we speak, he has managed to get his loyalists like Julius Debrah, Dzifa Ativor, Prosper Bani, Nana Oye Lithur, Omane Boamah and others, to take over committees formed to implement the report,” he claimed.

“These people were indicted by the report, so how can it be the same people who are being made to implement the report?" the source queried.

Implementation Committees

Matters came to a head last week when the Implementation Committee (IC) of the Prof Botchwey Committee, made up of respected NDC gurus like Kofi Totobi Quakyie, Nana Ato Dadzie, Kwame Peprah, among others, became aware that the Functional Executive Committee (FEC) had already set up sub-committees to commence work.

The source said that the FEC had formed sub-committees such as Women’s Affairs Committee, to be headed by Dzifa Aku Attivor, former Minister of Transport, with Nana Oye Lithur - former Minister of Gender and Social Protection - in support.

There is also the sub-committee for Welfare and Fundraising to be headed by former Chief of Staff, Julius Debrah and former Interior Minister, Prosper K. Bani while Fonu Kpatakpa and Abigail Elorm Mensah are said to be heading the Committee on Youth.

Former Communications Minister, Dr. Edward Omane Boamah, is believed to be in-charge of the Communications Committee.

The prominent Implementation Committee members allegedly became incensed because they persistently insisted that some of the persons listed as heading the sub-committees were people that the NDC grassroots do not want to encounter in the course of the reorganization exercise.

Abrupt Meeting

“Recently, FEC meeting ended abruptly because of disagreement over the inclusion of these people. Page 26 specifically mentioned their names as persons who contributed to our defeat. When this point was raised at the FEC meeting, it resulted in exchanges,” the source revealed.

Real Intentions

According to the source, almost all those appointed to the sub-committees are also lacing their boots to contest for national positions when nominations open.

The source claimed, for instance, that Mr Julius Debrah would contest for the national chairman slot; Ms Dzifa Ativor, for national vice chairperson; Nana Oye Lithur, national women’s organizer; Mr Prosper Bani, Volta Regional chairman.

They are said to be doing it to consolidate their hold on the party so that Mr Mahama would have unfettered access to the flagbearership contest.

“Their real intentions are to use the committees to mend fences and jump into national position,” the source added.

Brokering Deals

According to the source, some of those appointed into the sub-committees are said to be campaigning vigorously at the FEC to get their names deleted from the Prof Botchwey report, adding that that had delayed the release of the report to the public.

To make that happen, some of the indicted bigwigs are said to have brokered a deal between some National Executives and the former President’s camp, with an understanding that the latter would fund the activities of the party, if they yielded to their dictates.

The source said those persons are pushing a proposal that after the constituency and regional elections, the party would conduct the flag bearer election before the national delegates’ congress to elect new national executives.

“They want to do this to dwarf the influence of Rawlings and the Ahwois in the party, but it won't work,” he charged.

EC BOSS UNDER PRESSURE OVER ‘DONKOMI’ CARS

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Monday, August 21, 2017

Chairperson of the Electoral Commission (EC), Charlotte Osei, is under intense pressure to explain how her outfit was able to auction about 40 vehicles without proper documentation.

The demand for explanation has come from the Public Accounts Committee (PAC) of Parliament. It wants the EC to provide further and better particulars of all the vehicles auctioned, which Dr. Kwadwo Afari-Gyan, immediate past chairman of the commission, grabbed a 2008 model Nissan Urvan mini bus for a paltry GH¢2,675.

Interestingly, the Auditor General’s Report of 2015 had captured the EC auctions, which were done in 2013 in the heat of the landmark Presidential Election Petition - when Dr. Afari-Gyan was being grilled by the Supreme Court on the 2012 presidential election results.

Ridiculous Prices

It is turning out that Mrs Charlotte Osei, who is herself facing preliminary investigations over alleged abuse of office and corruption, does not even know the name(s) of the auctioneer(s) involved in the transaction that generated the ridiculous prices.

There are issues, including whether the whole exercise was open to the public or it was restricted to the commission’s staff alone; and whether it was advertised in the newspapers for prospective applicants to take notice of.

Defending the process, Mrs Osei said the vehicles were more than four years and had lost their values and so ideally, they would have been valued at zero percent.

Name Of Auctioneer

When asked about the name of the auctioneer engaged to dispose of the vehicles last week in parliament, Mrs. Charlotte Osei told the PAC, chaired by James Klutse Avedzi - MP for Ketu North - that “I don’t have that information here.”

Accompanied by Amadu Sulley, a Deputy EC Chairman in-charge of Operations, the chairperson said, “There were 40 vehicles which were disposed of in the year 2013. Those vehicles were acquired, most of them in the year 2007, 2006, 2000 and some in 2003.

“When we disposed of them through the auction, a total amount of about GH¢83,000 was realized. We have made copies of the documentation relating to that available as well.

“We have also given details of each vehicle - the year of purchase, the registration number, the year of disposal and the amount realized from the auction.”

The PAC chairman asked Mrs Osei - who could not provide the names of the auctioneers, the date on which the auction was done as well as the official advertisement announcing the intended auction - to supply those pieces of information to the committee to help in its work.

Initial Decision

It turned out at the PAC sitting that Dr. Afari-Gyan and other employees of the commission were among a group of 40 people who benefitted from the auction of vehicles at very ridiculous prices.

The auction was done after a decision had been taken by the management, headed by Dr. Afari-Gyan, to auction them so that some employees could make the purchase to motivate them.

The lowest price was GH¢749 and the highest being GH¢3,745.

A 2007 double-cabin Nissan pick-up with registration number GV 48 Y, was sold to one Saeed Mohammed at GH¢749.

The highest-valued auctioned vehicles were sold to two individuals - George Boison and Modestar Asungunah - at GH¢3,745 each.

The vehicles were two Peugeot Boxer mini buses manufactured in 2007 and were each bought at GH¢96,015 by the EC.

Two others - Augustine Okrah and Dongyile Guri - purchased double-cabin Nissan pick-ups at GH¢1,070 each; but the original price was GH¢18,683 each.

Christiana Bosompem also purchased one at GH¢2,000 and later topped it up with GH¢140. The EC officials did not disclose, which vehicle it was.

A member of the PAC, Ras Mubarak - MP for Kumbungu -  wanted to know whether Saeed Mohammed, who bought the Nissan pick-up, was an employee of the commission, but Madam Osei could not supply the answer, saying unless she verified from the commission’s records.

GOV’T STOPS TOWING LEVY

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Monday, August 21, 2017

The controversial mandatory towing levy that sparked heated debate in the country has been halted by the New Patriotic Party (NPP) government with immediate effect.

The project was to be carried out by Road Safety Management Limited (RSML), a subsidiary of the Jospong Group of Companies owned by businessman Joseph Siaw Agyapong of Zoomlion fame, but the Ministry of Transport has said that cannot be done.

DAILY GUIDE learnt the decision to discontinue the towing levy was taken at Cabinet meeting on Thursday where it was rejected outright leading to the minister issuing the statement announcing the cancellation of the deal.

A statement issued in Accra yesterday by the Minister of Transport, Kwaku Ofori Asiamah said “the government has decided not to implement the mandatory towing levy, which was scheduled to have commenced on July 1, 2017,” and said there was going to be a new law to regulate how to remove broken down or disabled vehicles from the roads.

The statement said the government’s decision followed “extensive consultations between the Minister of Transport and stakeholders in the transport sector,” adding “an announcement by the implementing agency (National Road Safety Commission - NRSC) that the LI will be implemented from July 1, 2017 was met with public outcry and calls for a review of the policy.”

The Minister said upon consultations, the government has decided to seek a review of parts of the law to achieve specific objectives.

He said the portion of the law that states the concept of a mandatory towing levy on all owners and persons in charge of motor vehicles and trailers will be rescinded and also the role of government in the provision of towing services will be limited to only licensing and regulating providers.

According to the minister, Legislative Instrument (LI) 2180 (Road Traffic Regulations, 2012), which in Regulation 102 (3) impose a mandatory levy on all owners and persons in charge of motor vehicles, for the purposes of towing  broken down or disabled vehicles on roads had been passed in 2012.

“Government renews its commitment to the policy position that broken down vehicles ought to be removed from our roads to avert accidents. New modalities for dealing with the problem of broken down or disabled vehicles will be formulated and announced in due course.”

As indicated by the ministry, there has been public uproar following the NRSC’s decision to roll out the programme as many people questioned the basis for which the commission awarded the contract to the RSML.

Fees per year for both commercial and non-commercial vehicles, depending on tonnage, ranged from GH¢20 to GH¢200.

CAPITAL BANK ROT EXPOSED

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Friday, August 18, 2017

An internal report of a probe into how Third Party Funds (TPF) were used by the Capital Bank shareholders has revealed massive individual and corporate liabilities running into million of cedis.

The report, which also looked at the segregation of liabilities of persons and/or individuals of the company, showed that even in 2014, the entire shareholders’ liabilities were hovering around GH¢56,788,289.00.

Capital Bank and UT Bank were recently taken over by GCB Bank under the Bank of Ghana (BoG) directive owing to insolvency.

DAILY GUIDE has learnt that the BoG action was long overdue as the banks insolvency was brought to the attention of the regulator long ago.

At Capital Bank, for instance, the alarm bell was sounded by former MD, Kofi Mensah, warning about the repercussions of failure to recapitalize the bank by the shareholders.     

Central Bank

It is becoming clear that former BoG Governor, Henry Kofi Wampah, was aware of the situation at the Capital Bank but appears not to have exercised his powers under the 1992 Constitution to force the insolvent bank to do the right thing.

The report concluded that William Ato Essien, who controlled majority of the shares (52 %) of the bank, was sitting on a liability of GH¢29,529,910.28, while Dr Stephen Enchill with 11% shares GH¢6,246,711.79 liability.

According to the report, John Kofi Mensah, with 10% shares, had a liability of GH¢5,678,828.90 whilst Otabil & Associates, represented by Dr. Mensah Otabil with 7% shares, had a liability of GH¢3,975,180.23.

Messrs Isaac Osah Thompson-Mensah, Kinsley Attah Ghansah and Isaac Oheneba Osei Akoto, who all had 5% each of the shares, had a liability of GH¢2,839,414.45 each while the International Gospel Church (ICGC), represented by Dr. Otabil, who was controlling 3% of the shares, had a liability of GH¢1,703,648.67 with Rev. Edwin Obeng Donkor (2% shares), sat on a liability of GH¢1,1135,765.78 - bringing the total liability to GH¢56,788,289.00.

Corporate Liabilities

The committee said it reached “various conclusions with regards to individuals and corporate liabilities,” adding that “these conclusions were reached in agreement with all the witnesses which could prove detrimental to their interests.”

It said, “A total amount of GH¢136,726,101.00 was identified as TPF. Out of the said amount, GH¢56,788,289.00 was to be debited to shareholders.”

It added, “GH¢1,557,089.00 was to be debited to Mr Ossah; GH¢1,245,671.00 was to be debited to Dr. Enchill; GH¢77,135,052 was to be debited to Mr Essien. In the absence of any superior evidence to the contrary, the Labone land, title deed of which is currently in the custody of Mr. Essien, could have been paid for partly by him, perhaps from TPF or his own resources.”

The committee had recommended that all amounts identified as standing in the names of individuals should be paid within seven days of a formal demand made on them saying “this is inclusive of various liabilities.”

However, there appears not to be any sign that this directive was followed although the report had been copied to Dr. Wampah.

Attachment Of Shares

According to the report, the personalities mentioned in default were to have their shares attached in the bank and added that “subject to any contrary information that will become apparent after the committee’s work, Mr. Essien be allowed to keep the Labone property upon the payment to the bank of an amount of GH¢5,190,295.97, being the sum total of the GH¢2,000,000 paid from FCP’s accounts and interests accruing thereon at the prevailing interest rates.

“The said amount should also be paid within seven days of a formal request made for that purpose. In default, further shares should be attached and/or personal properties attached to discharge the said liability.”

Fishy Deals

The committee said it established that “Some expenditure items incurred at the incorporation of FCP reflect in the bank’s records,” but added, “There were other expenditure items that do not reflect in the bank’s records.

“There was no documentary evidence for most of the expenditure made in the name of the bank. Some individuals and institutions had made various deposits with the bank which did not reflect on the bank’s books.”

Personal Liabilities

It indicated, “Various persons had contracted personal liabilities which the bank had either redeemed out of its own resources or which were still standing in the name of the bank. Some of the bank’s investments with other institutions had been used to off-set some personal liabilities.

“That part of the purchase price of the Labone property and expenditure on the Tesano office renovations were incurred from the bank’s books. Huge expenditure overheads were made in the name of protocol with no records to substantiate.”

Labone Property

The report said that the total cost of the Labone property was $3 million, out of which an amount of GH¢2 million being part payment thereof, was paid from the bank’s resources.

“An account in the name of Liberty Financial Services was opened as the medium for the payment of the said amount, and in favour of Mr. Patrick Sarpong, representative of the Transferor of the Labone property.

“In total, an amount of about GH¢5.8 million went through the said account. The committee, however, got confirmation from FCP’s Finance Department that the GH¢2,000,000 payment was specifically for the purchase of the Labone property. There were no confirmations for the other transactions on the said accounts. Suffice it to say, some of them were credit interest and payments of interest on investment.”

Solicitor’s Demand

“The committee also chanced upon a demand notice by Minka-Premo & Co. solicitors, acting on behalf of Patrick G.A. Sarpong, who was the Lawful Attorney of the Vendor of the said property to FCP. In the said letter, they were making a demand on some investments their clients had with FCP.

“The committee then requested for further information from the said solicitors on how his client’s monies were paid. However, they were unable to provide any information with regards to the said request,” the report concluded.