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BoG declines invitation to help Parliamentary investigation into revocation of banking licences

Dr Kwabena Duffour (L) and Prince Kofi Amoabeng (R)

The Bank of Ghana has declined an invitation to appear before Parliament to assist with investigations into the revocation of the banking licences of Unibank and UT Bank.

Writing through its lawyers, Bentsi-Enchill Letsa and Ankomah, the central bank explained that the petitioners, Prince Kofi Amoabeng and Dr Kwabena Duffour, owners of the two banks, seek to procure Parliament to review decisions that it has taken.

The BoG further explained that this decision was taken according to its statutory powers under the Banks and Specialised Deposit Taking Institutions Act, 2016 (Act 930).

“The BSDTI Act provides how persons who are aggrieved with such decisions may seek redress for their grievances, and the prescribed resolution mechanisms do not include recourse to Parliament.”

The central bank indicated that the two bank owners, by petitioning Speaker Alban Bagbin, have invited the legislature to issue instructions to it in the performance of its constitutionally mandated duty of promoting economic development and the efficient operation of a banking and credit system in the country.

This, BoG argues, is contrary to section 3 (2) and section 4 (1A) of the Bank of Ghana Act , 2002 (Act 613).

The central bank’s response comes after Mr Kofi Amoabeng and Dr Kwabena Duffour petitioned Parliament to probe BoG’s conduct and the Ghana Stock Exchange (GSE) over the withdrawal of their banking licences.

The petitioners amongst others, asked Parliament to order BoG to restore their licence.

Parliament, after setting up a seven-member committee to probe the issues, asked the central bank to file a response to the petition.

But in a detailed response through its lawyers, the bank observed that “It will not participate in the investigation being conducted by Parliament, arguing the probe flies in the face of the Constitution.”

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Registrar-General reviews companies listed for strike off

Registrar-General's Department provides free sanitizers to staff, clients

The Registrar-General’s Department (RGD) says it has commenced a review of the sample group of companies listed on its website for strike off.

The exercise is to validate companies that complied with the directive for dormant companies to file their returns or risk being delisted from the companies register at the end of June 30, 2021. 

A statement from the Department,  issued and signed by Mrs Jemima Maama Oware, the Registrar-General, said the three-month long review began on July 1, 2021 and would end on September 30, 2021.

It said the review had become necessary after the final notice was issued on March, 18, 2021, to officials of dormant companies to file their annual returns to be in good standing with the Department.

It said the Department had earlier issued two notices on March 12, 2020 and December 01, 2020, and had published them in the national dailies and the Department’s website respectively in accordance with the Companies Act 2019, Act 992.

The statement said the Companies were Public/Private Companies Limited by Shares, Public/Private Companies Limited by Guarantee (Associations, Fun Clubs, Churches, etc.), Private Unlimited Companies and External Companies.

It said the strike off exercise became necessary because the Department’s Company database became bloated with names of dormant Companies entered onto the Companies Register.

  The statement said, 257,241 Companies existing in the new database had not filed their Returns or Amendments with the Department and that also, 670,282 Companies in the Legacy system had not carried out their re-registration as at the release of the first notice in March, 2020.

The statement said Companies due for strike off still in default after the three-month review would be published in the national sailies and on the Department’s website.

It said  a Company’s status during the period would be classified as being inactive and would not be able to be accessed for any business transaction for 12 years except by a court order to the Registrar.

The statement said such Companies were, therefore, advised to use the three-month review to undertake all the necessary measures to be in good standing with the Department.

The Department  urged all clients to visit its website, click on news and scroll down to view the list of Companies the Registrar intended to strike off the Register.

The statement said penalty for late filing remained GH¢450.00 with GH¢50.00 for filing of Annual Returns for each year.

It asked Company Officials to include their Beneficial Ownership information when filing their Annual Returns.

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Addison acknowledges Amissah-Arthur, Wampah, Issahaku at opening of the Bank Hospital

Addison acknowledges Amissah-Arthur, Wampah, Issahaku at opening of the Bank Hospital

He opened the facility on Thursday July 8.

Dr Addison sated that on April 2018, the hospital was finally handed over to the Management of the Bank with some critical outstanding  issues relating to substantial IT related matters, architectural finishes, as well as electrical, mechanical, and biomedical installations.

While the technical team were working with the contractor to resolve all the outstanding issues and the training of the staff on these installations, he said, an implementation Committee was set up to help with the operationalisation of the hospital following the recommendations of the Blueprint Committee.

“In as much as we acknowledged the usefulness of these ongoing projects to support health care and recreational facilities of bank staff, the Board and the Management recognised the conflicting roles in pursuing the core mandate of the Bank, which is to ensure price and financial stability to foster growth, and effectively managing a hospital.

“Consequently, the Board and Management decided to carefully craft a path that would ensure sustainably managing this Hospital to best serve the interest of the Bank and the country at large. Therefore, the Board, having recognized that the Bank lacked the expertise to effectively manage a hospital complex, initiated a process to partner the private sector to effectively and sustainably manage The Bank Hospital,” he stated.

On the Business model guiding the operations of a hospital, he said, the implementation Committee recommended that The Bank Hospital should be set up as a commercial entity operating as a general hospital, to provide world-class OPD services, diagnostic services, and medical urology. The Committee recommended that the Hospital needed to be operated via a multi-disciplinary teamwork approach with the clinical business units at the OPD being allowed to generate its own income to meet some of its operational costs. Based on these considerations, the Bank of Ghana Board and Management opted for the Management Model of over 3-5 years.

“In line with the recommendations, the Bank appointed a sub-Committee of the Board of Directors to oversee the tendering process. Given the complex nature of the services being sought by the Bank, the Committee conducted a two staged tender process to select a partner with the necessary level of technical capacity to operate a 65-bed, multispeciality hospital as well as the financial proposal most advantageous to the Bank. Phase 1 of the Tender Process focused on the technical capacity of the bidding parties. From nine bidders, the Committee selected four parties, who demonstrated the necessary technical ability. These four parities were invited to attend separate meetings at the Bank Hospital in Accra, providing a further opportunity to gather information from the bidding party.

“Going into Phase 2 of the Tender Process, the four shortlisted bidders were provided with an updated RFP requesting more detailed technical information as well as a highly detailed financial proposal and model. After going through a lengthy selection process, Halcom Management Services (HMS) of South Africa was appointed by the Bank to manage the Hospital on behalf of the Bank. And subsequently the Committee commenced detailed due diligence of the counterparty ahead of final negotiations. Subsequently, the Bank appointed a transaction lawyer to help with the negotiation process.”

 “Let me take this opportunity, therefore, to specially acknowledge the then Governor, the late Kwesi Bekoe Amissah-Arthur, who begun this whole process, and then Governors Dr. Henry Wampah and Dr. Issahaku Nashiru, who successfully steered, implemented, and executed the Hospital Project to the state in which the  new management met.

“I also want to acknowledge the various Committee members and the entire team who worked tirelessly with dedication to accomplish the task. Today, only a few of the core members of the Committee are still at post but to those who have left the service of the Bank, we all say ‘a big thank you’ for the instrumental roles each of you played in executing this project.”

Source:3 News

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Komenda is becoming ghost town; Citizens demand 7 answers from Akufo-Addo

Komenda Sugar factory shuts down -
Some machines at the Komenda Sugar Factory

The Concerned Citizens of Komenda in the Central Region of Ghana have raised seven (7) critical issues which must be answered by the Akufo-Addo government over the abandonment of the New Komenda Sugar Factory which was re-birthed by the erstwhile Mahama administration.

A petition, dated July 7, 2021which was signed by Samuel Awudzah(Convener), Ransford Chatman-Vani-Amoah(Former Board Secretary to the Factory), Benjamin Otoo(Concerned Citizen)and   Hon.Alphonse Baidoo(Assembly Member). The rest are Hon.Joseph Kojo Williams (Assembly Member) Hon.Phillip Bosomwtwi Amoah(Assembly Member), Anthony Anafo(Rep, Sugarcane Farmers) and Ebusuapanyin Kweku Wobir(Rep, Distillers Association had made some demands.

The group has largely demanded answers for the stalemate in commencement of work by the government’s strategic investor, Park Aggrotech Ghana Limited whose business relations with government was consummated on 26 November, 2019.

They explained that Komenda is fast-becoming a ghost town due to the phenomenon of rural-urban migration borne out of lack of reliable economic activities in the area hence the need to expedite action towards re-opening of the factory.

“Your Excellency, we want to bring to your attention attention that, the youth of Komenda need jobs.” The Petition stated.

They said Ghana spends in excess of US$400m annually in the importation of sugar and seeing to the re-opening of the Komenda Sugar Factory will save the national purse greatly.

It could be recalled the group called off a planned demonstration yesterday after assurances of the Central Regional Minister that a Public Forum would be held on July 19 to address their grievances. It is unclear, what may have necessitated this new move.

Read below their full petition:

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