Government to establish register for disclosure of petroleum contracts

Deputy Energy Minister in charge of Petroleum -Dr. Mohammed Amin Adams-

Ghana will by end of this year make public a petroleum register for all agreements, licenses, permits and authorisations.

Deputy Minister of Energy in charge of Petroleum, Dr Mohammed Amin Adams disclosed this at the just ended 2^nd Africa Open Data Conference in Accra.

The measure will provide clarity on the Petroleum Exploration and Production Act of 2016.

The Minister, however, did not come clear whether full-text contracts or just a simple list of agreements would be made public — the law provides for a readily available and accessible register.

Dr Amin Adam is convinced the register will promote effective and beneficial ownership as part of efforts to address corruption in the sector.

“We have taken a decision that the petroleum register which is required to be set under section 56 of the law act 911 should be established where all the contracts will be published.

“Apart from providing this information we must have a portal within the register where primary contracts can be downloaded by citizens and scrutinise,” he said.

The Minister revealed that there will be an additional portal that provides a data repository similar to what pertains in the mining sector; where data on production, pricing, lifting, even expenditure of revenue generated from the exploitation of oil can be accessed.

“Two portals going side by side so that people will be able to reconcile whether we are disclosing the real amount of revenue due the state whether the state share of oil corresponds with what is negotiated in the contracts etc,” he said.

The move is in fulfilment of Ghana’s promise at an anti-corruption summit in the United Kingdom.

Ghana promised to remain “committed to preventing the misuse of companies and legal arrangements to hide the proceeds of corruption and commits to strengthening further both the Companies Bill and the Petroleum (Exploration and Production) Bill that are currently before Parliament to ensure that we have public beneficial ownership information and central register for all sectors, including oil and gas sector, in line with UNCAC and FATF Recommendations as well as the Extractive Industries Transparency Initiative (EITI) standards that Ghana is implementing; ensuring that accurate and timely company beneficial ownership information, including in the extractives, is available and accessible to the public”.

Dr Amin Adams also revealed that there will also be a value-for-money audit within the public procurement authority to deepen contract transparency.

“Whiles contracts are disclosed, citizens will ask questions about the cost and efficiencies used.

“But if we take for granted that only disclosing money leads to value for money, then we may be misleading ourselves,” he stressed.

The move he believes will ensure that the country is not short-changed by contractors whether foreign or local.

Meanwhile, Co-chair of the Ghana Extractive Industry Transparency Initiative (EITI), Dr Steve Manteaw, indicated that civil society organisations are doing the best they can.

Speaking at a session during the 2^nd Africa Open Data Conference, he complained that most of the oil contracts are conspicuously missing on government websites.

“Government must leave by its word and open the contracts and once that is done civil society will do a good job with it,” he charged.

The 2^nd Africa open data conference was a five-day engagement with stakeholders across the close that opened on July 17 and closed on July 21.

Local businesses urged to form partnerships to enjoy gov’t incentives

Business promoters are encouraging local partnerships in order to benefit from government’s industrialization incentives.

President of the National Chamber of Commerce and Industry, Nana Dr. Appiagyei Dankawoso I,  is among those pushing for local business partnership.

At a  breakfast meeting to discuss prospects of his suggestion in Kumasi, he revealed that a communiqué will soon be issued to the government on progress made with efforts towards collaboration.

“We will tell the government we are ready…this is how far we have organised ourselves so help us, because this is a win-win situation,” he said.

The government has said it wants the private sector to spearhead its One-District-One-Factory’ policy.

Members of the Chamber of Commerce and Industry are seeking to collaborate with the state to implement the initiative to address unemployment.

Nana Dankawoso I believes it is critical to form strong alliances to explore opportunities presented by the setting up of factories.

“Don’t sit and think you can do it on your own, partner each other either with varying skills and expertise or same to take advantage of the program,” he stressed.

He cited Ntonso, Bonwire, Eahwiaa as areas enriched with creativity that can be better tapped through partnerships.

Kumasi Chamber President, Yaw Boakye Yiadom, also emphasized the need to tap into abundant natural resource in the Ashanti Region.

Nana Appiagyei Dankawoso I (President of Ghana Chamber of Commerce and Industry)

“God has given us enough natural resource which should be a comparative advantage for the region. How do we harness and take advantage of some of this creativity given us by the government? ” he said.

The event, hosted by the Kumasi Chamber of Commerce and Industry, was under the theme was ’’ Positioning Ashanti Region to Take Advantage of the ‘One-District, One-Factory’ Policy by Government’’.

Meanwhile, the Ashanti Regional Coordinating Council has set up a special desk to provide information on government’s one district, one factory initiative.

Regional Coordinating Director, Yaw Asubonteng says, it will create a one-stop shop for information bank and a directory to facilitate the implementation of the policy.

“Information about people seeking partnerships and resource locations and even available land is being provided,.” he revealed.

Two Ghanaians win international engineering innovation contest

Co-founder (Charles Ofori Antipem)

Two Ghanaian scientists have emerged winners in this year’s American Society of Mechanical Innovation Showcase contest.

The innovation by Charles Ofori Antipem and Michael Afrifa won the hearts of panelists and other participants at the international engineering challenge.

They entered the competition with a portable science lab in a form of a mathematical set to beat eight other pairs of contestants.

Known as the DEXT Science Set, the device which is similar to mathematical set has basic science experiment tools.

It also has apparatus to facilitate understanding of science education from the basic level.

The hardware-led social innovation programme is aimed at solving social and environmental issues by establishing the most innovative idea.

Nine finalists from Uganda, Tanzania, Kenya and Ghana were shortlisted out of 30 finalists who came before the judges with their ideas.

Participants receive feed-back on their idea, access to industry best practice and contact with a global community of engineering experts.

Winners become part of the Innovative Showcase (ISHOW) alumni network, a global community of hardware innovators.

The highly scalable portable science laboratory by the Ghanaians fits into a bag and can be set up on a student’s desk.

The pleasant twist about the Ghanaian innovation is that all the judges purchased one for personal use.

Co-founder (Micheal Afrifa)

Charles Ofori Antipem is co-founder and representative of the group in Kenya.

He says the initiative seeks to address difficulty associated with teaching and learning of science learning at the basic level.

The highly scalable science laboratory can fit into a bag and can be set up on a student’s desk.

Hardware-led social innovation takes a physical product to market to solve a social or environmental problem, using sustainable business model.

It focuses, specifically, on design and engineering journey of ventures.

They focus on eight themes, including water and sanitation, energy, environment as well as food and agriculture.

The rest are education, economic development and community empowerment as well as safety.

10 years of on-street pay parking in Kumasi; City still congested

Congestion in the Central Business District of Kumasi

City authorities in Kumasi, the Ashanti Region capital, rake in a daily revenue of GHS 5,000 from motorists who park their vehicles in the central business district.

This figure reflects an increase from an initial 50 pesewas per slot three years ago to GHS1 currently charged motorists who decide to park at any of the 1,278 parking spaces available.

The on-street pay parking introduced by the Kumasi Metropolitan Assembly (KMA) in 2006 was meant to decongest the city centre, but that may not have happened a decade later.

The accredited collection agency, Gold Street Real Estate Company, which made 1.8 million Ghana Cedis in 2015, also generated close to 2 million Ghana Cedis for 2016 in revenues.

Arko Mensah, General Manager of Gold Street Real Estate Company, revealed the 2015 and 2016 figures during an interview with the Host of the LUV FMs Magazine program, The Diary, David Akuettey, on Tuesday.

“So far as this year, we have been running a daily average [revenue] of between 5,000 and 7,000 Ghana Cedis”, he added.

The regulation for on-street parking is that immediately a user parks, within one they are required to still pay the 1 Ghana Cedis.

Ten years after the introduction of on-street pay parking in Kumasi, there are concerns the measure has done little to decongest the city.

Motorists and other residents have had to contend with unbearable traffic, with little space to maneuver as vehicles are parked along major streets.

Patrons of this parking service and other residents are, however, worried about the persistent congestion, despite the intervention.

“We have vehicles that park for as long as ten hours, and you tell me you are managing the place, as far as I and other users are concerned the answer is no because I don’t see any management over there,” a worried user, James Aboagye explains.

Chief Executive of Gold Street Real Estate Company, Kakraba Ampeh says, “I am not satisfied where we are because if in the first two or three years we manage to control the situation and now it is in this state, I can’t be satisfied”.

Another frustrated user says, “Their task-force is very irrational because I am ready to pay but there are no spaces to park. I stop for a few minutes and want to buy something and they come to a clamp the vehicle without any fault of mine.”

Managers of the scheme, Gold Street Real Estates, have however identified huge cargo trucks occupying major parking slots in the metropolis as the cause of the increase congestion.

Mr. Ampeh wants city authorities to provide alternative space outside the city for discharging cargo in a bid to intensify effort to address the continued congestion in the city.

“There is the need for rethinking through the whole operation scheme.  Remove wholesale business activities in the central business district. If KMA is able to provide a wholesale shopping area after the central business district, it will provide free further spaces for cars”, he said.

There are also concerns about what the revenue generated since 2006 has been used for.

An average of between GHS 600, 000 and GHS 700,000 was collected from between 2006 to 2013. But this figure rose to GHS 1.76 million in 2014.

According to authorities, the revenues accumulated end up in the coffers of the Kumasi Metropolitan Assembly (KMA) and the Urban Roads Department.

Public Relations Officer for the Kumasi Metropolitan Assembly, Godwin Okumah- Nyame, said the on-street parking toll end up as the state in coffers.

“If you look at how public funds are managed, the same money is used to manage sanitation. Some go into roads and road markings. But in general whatever money we collect are state funds and it goes into our accounts and are being used as any state fund is being used,” he said.

Meanwhile, plans for constructing a modern car park in the central business district is yet to materialise. Mr. Okumah-Nyame hints the KMA is exploring public-private partnership for the project.

Areas around the Kumasi Central Prison, according to him, have been designated for an ultramodern car park to be constructed.

The Chinese, early 2016 expressed interest to construct during a sister-city relationship in Ghana. But Mr. Nyame emphasised that the project will not be funded by internally generated fund.

So the question still remains that why is the money being collected from on-street parking not being used for parking lot expansion?

Records available indicate that the traffic situation will be further escalated due to population growth in Kumasi and other parts of the fastest growing region in Ghana, which is growing at 2.7 percent annually.

Story by Prince Appiah

Government urged to reward lecturers for innovations not academic papers.

Associate Professor at the University of Ghana Medical School-PROF. ALEX DUODU

An Associate Professor at the University of Ghana Medical School, Professor Alex Duodu is suggesting government considers rewarding lecturers based on innovations and not their academic papers.

Prof Duodu believes this will encourage universities to produce research tailored to solving societal challenges.

“it means that the university will be rewarded for the innovations that they bring not for academic papers”.

Ghana has often been tagged as exporting our cocoa and other raw materials raw in the face of universities through their research can add value to such materials.

He says the time is ripe for Ghana to harness its university expertise in solving its problems than resorting to foreign assistance.

For him, Ghana must close its eyes and assume that we don’t have donors and partners helping us, “let’s solve our dumsor, preserve our foods and produce for exports and solve our problems ourselves”.

He says this requires a radical transformation of the mindset of the Ghanaian.

The clinical pharmacology professor at the University of Ghana is worried many promising research work sit gathering dust at the various universities.

He is suggesting industries willing to utilize university research to enhance output and improve productivity are given tax exemptions.

“Why should industries sit with problems when universities are there, let them bring them out and if the universities can’t solve them then the industries/government would have to cry”, he questions.

According to him, we live in a knowledge-based economy which the whole world is using to create wealth and jobs making the research institutions critical to economic development.

“We have a charge to keep and a call to make so I believe that collaborative research is needed now to solve Ghanaian problems and move our economy forward”.

But Prof Duodu observes, “It appears that the researchers in our countries tend to look at themselves. Pharmacy for instance looks at pharmacy only but our problems are multi- factorial and multi-sectorial”.

He spoke to Luv News at the Faculty of Pharmacy and Pharmaceutical Sciences Graduate Week Celebration, under the theme, “Collaborative research and health-the way forward in Ghana”.

Pro-vice chancellor of the school, Rev. Professor Charles Ansah reveals plans are in place to enable inter-collegiate collaboration to target industry based research.

“ what we need to do is to look at the research again reengineer it to be able to impact on the people that we serve and particularly those in the rural areas who cannot afford basic medicine”,.

Lecturer and the Post Graduate Program Coordinator, Dr. Joseph Adu says, “Universities are supposed to be knowledge centers generating knowledge for national development as we look round we are assaulted with so many diseases”.

He says researchers must come together to solve our problems and above all create wealth, we have the freedom to do it and we must do it.

Story by Prince Appiah

Gov’t urged to increase research funding to 1% of GDP to stimulate dev’t

FORMER GIMPA DIRECTOR-PROF STEPHEN ADEI

The former Rector of Ghana Institute of Management and Public Administration (GIMPA) wants the government to increase research funding to stimulate economic growth.

Currently, the government spends about 0.38 percent of its gross domestic product (GDP) on research, a figure Professor Stephen Adei describes as woefully inadequate.

He wants the figure to be increased, at least, to one percent.

“We must increase the quantum of the research and the quality of research should not be research to get a degree as an end in itself, but as a development instrument,” he said.

Professor Adei is also advocating for a national policy to ensure research from graduate education addresses specific economic challenges.

He spoke to LUV Biz at a public lecture in Kumasi to launch the week-long celebration of the Graduate Students Association of Ghana.

“Ideally, as a middle-income country, we should be putting at least 1 percent of our GDP into research and development then there must be a policy [to enable the research] to become relevant to our national development,” the former GIMPA Rector stated.

The Lecture where Prof Adei spoke was held at the Kwame Nkrumah University of Science and Technology (KNUST), under the theme, ‘Harmonising Research and Entrepreneurship for National Development: the Role of the Graduate Student’.

It was part of the week-long celebration of the Graduate Student Association’s annual event.

President of KNUST chapter of GRASSAG, Kusi Boakye, believes such forums hold the potential to challenge students to start their own businesses than looking up to white colour jobs.

In a related development, Associate Professor at the University of Ghana Medical School, Professor Alex Duodu, has reiterated the need for researchers to contribute to Gross Domestic Product (GDP) growth through research.

“The world is moving fast. We must really contribute to GDP growth and the time to start is now,” he said.

According to him, the universities must research into challenges that hold back the country’s progress.

“Government must ask the radical question to change the way universities are funded [in such a way that] funding goes to areas of importance and not blanket research and book allowance because sometimes certain incentives tend to be counterproductive,” Prof Duodo adds.

Professor Duodu, therefore, wants discussion among institutions of higher education, industry and other stakeholders to start immediately.

In the 21st century, according to the Professor, no country should rely on other countries to solve their problems for them.

He is, therefore, charging those in higher education to bring scientifically sound and credible solutions to national issues.

“Leave all the philosophy to the church and mosque but I believe that higher education should bring scientifically sound and credible solutions to national issues,” he said.

 Story by Prince Appiah

Traditional barbers in Kumasi cash in on ‘dansinkran’- the royal hair cut.

Pairs of scissors trim the patron’s hair round the base of the skull. It leaves a shape of a round cylindrical crown or bowl on the head.

A black powdered charcoal-like substance is smeared on the hair to hold it firm. A little oil is applied to keep it soft before perfume spray gives it nice and pleasant fragrance.

This is called ‘dansikran’. It goes with carefully shaped eye-brow to match it.

At funerals and other cultural gatherings, queen-mothers, especially, spot this traditional hairdo to give them a unique look.

The recent burial of the late Asantehemaa, Nana Afia  Kobi Serwaa Ampem the second saw
a display of rich Asante and Ghanaian Culture.

Ama Gyamfua, Asumenyahemaa

‘Dansinkran’ was very prominent during the late Asantehemaa’s one week and burial rites. The story was no
different during the 80^th day rites at which a successor was named.

‘Dansikran’ was originally dancing crown which history explains was given by the Europeans coined from English words, ‘dancing crown’.

The haircut was the preserve of Qu
eens and queen mothers in the Asante Kingdom. But gradually, it has become the toast of many women who uphold culture and tradition in the Asante kingdom.

“It makes us unique from ordinary people,” says Ama Gyamfua, Asumenyahemaa who s
pots the hairdo. This is the fourth time she’s had ‘dansinkran’ done for her since the beginning of the year.

Agartha Mensah (right) and Daughter-Akyaa(left) busily working on some clients

In the heart of Asafo suburb of Kumasi, is a house- the hub of ‘dansikran’. Hundreds of people line up here during funerals and other traditional occasions to have what they believe is the best of ‘dansikran’ treat.

The traditional barber, 45 year old Agartha Mensah took over this business from her auntie twenty years ago.

She charges 20 Ghana Cedis per person as basic cost, but it varies as people, sometimes, pay between 100 and 500 Gh
ana cedis.

One of her regular customers is Nana Pomaa Ampomah who is the Sankore Manhemaa from the Brong Ahafo region.  She pays 20 Ghana Cedis when she go to her shop but pays more when Agartha comes instead.

At least, she pays Agartha almost Gh¢800 during big funerals or durbars.

It is now a family business as her daughter, Akyaa, also makes a career out of it whiles his son joins during vacation.

As part of the core procedure, she also works on women who have little or no hair but are keen on having ‘dansikran’
cut.

Atonsu hemaa (queen of Atonsu)-Nana Agyemang spots her specially made weavon-‘dansikran’

This is done through artificial weave-on and cut it to shape and later  fix it for it to look like the individual’s natural hair. This comes with additional Gh¢ 40 cost  to the patron.

Atonsuhemaaa, Nana Agyemang is one such people who are giving ‘dansikran’ a modern touch with the weave-on.

According to her, she lost her hair after fallen ill. But she’s happy she can still wear ‘dansikran’ for gatherings.”

Agatha and her daughter worked on nearly 500 patrons a day. She explains she makes enough money to cater for her home.

The craze has created a huge business opportunity for existing traditional barbers as well as new entrants who are learning the art so they can cash in on funerals and durbars.

Story by Prince Appiah

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Cement in tots: New trend of cement retail emerges in Kumasi

Some businesses are devising more ingenious ways to survive the extreme
competition they face in the market, especially in cement sale.

The challenge, therefore, has resulted in a creative way of retailing cement in Kumasi in cans and other plastic containers.

A visit to Railways Line, a suburb close to Alabar and the Central Market revealed that some retailers have heaped in small containers — the cement is sold in bits and pieces other than in bags.

One of such innovative retailers is 20-year-old Faila Salifu, who does not have enough money to rent a shop or buy in large quantities to retail.

With a bag of cement selling at an ex-factory price of between 29 Ghana Cedis and 35 Ghana Cedis sales has dwindled drastically with retailers being at the receiving end.

20 year old Faila Salifu

Faila Salifu who has been in this business for the past three years is happy at the prospects of selling in small containers.

“In a day I can sell either two or three bags, the business is good, there are no jobs so this is what I am doing”, he said.

Prices range from the small ‘magarine’ container which is 3 Ghana Cedis, the ‘olonka’ goes for 7 Ghana Cedis, while the rubber paint is 9 Ghana Cedis.

This style of retailing used to be peculiar with grains and cereals.

But perhaps the complexity of the market and the quest to make income is pushing it to other commodities.

Forty-three-year-old Yaw Amankwaa has been doing this for seven years.  But competition has eaten into his sales.

43 year old Yaw Amankwaa

“I used to sell seven bags a day. It has reduced because now a lot of people are getting into this business,” he complained.

According to him, he started at the Railways Line (an area close to Central Market), but it has now spread to Aboabo Station, Sofoline and other areas.

So as with every business, the customer will almost always dictate how products are sold.

“If I need little cement for the job I am doing then I buy it, in fact, it really helps my business but with cement when you keep it open it for a long time , it loses its potency,” Kubina Okyem, a mason said.

Kofi Sarfo, a tiler at Maxima Junction in Kumasi  has been patronising what has become known as ‘cement-in- tots’ is happy at the develop because he is able to save some money on the product.

“As little as 5 Ghana Cedis, I can buy what I need, so I don’t waste cement and money,” he said.

For young Salifu, “one would only complain about no work if they are lazy to work.”

Story by Prince Appiah

 

Ghanaians promote made-in Ghana textiles in Cape Town

Two Ghanaian traders resident in Cape Town, South Africa have become perhaps, unofficial ambassadors of Ghana’s textiles industry.

Alhaji Ibrahim and Maame Adjoa have been selling African fabrics, with their shops situated at Africa Women Craft Market becoming the toast of many Africa wear lovers.

It is one of the many craft market centres on the busy Long Street in the central business district of Cape Town.

Alhaji Ibrahim, a young energetic man in his thirties carefully kneads the treadle of the machine in the market hall. He is busily making a shirt with a fabric from Ghana for a client when i visited him in the shop.

“The textile from Ghana, a lot of people like it and appreciate it, so we get a lot of benefit from Ghana textiles”, he explained.

Alhaji Ibrahim displays Ghana Textiles in Cape Town

He travelled to ‘Mandelaland’ in 2010 when life had been tough for him back home in Ghana.

Adventurous Alhaji was on a mission to actually explore business opportunities there to enable him take a decision for the future.

After three months of studying the environment, he went back to Ghana and returned well prepared to permanently settle and invest in this business.

With his clothing-making skill, it was perhaps the right decision to take. At his present base, he delivers elegant wear averagely for ten clients, both males and females, in a week.

“Sewing here in South Africa, especially, Cape Town is good. We receive a lot of tourists from across the world; normally they love fabrics from West Africa especially from Ghana. So we benefit from textile coming from Ghana”.

Cost for sewing a shirt, according to him, varies. For men it is up to 40 dollars while that of women could fetch 60 dollars.

Obviously business is good for him with better conditions available here than what prevails in Ghana.

Alhaji Ibrahim speaks to Prince Appiah

Just about a two- minute walk from Alhaji’s shop is Maame Adjoa’s. She owns two textile shops at another craft market in the Central Business District.

Fabrics on display here range from batik, tie-and-dye, high-target, Angelina-combinations and the ever beautiful and proverbial kente.

Adjoa has been selling Ghanaian fabrics for about six years. She also sews, on demand with another aim- to promote Ghana textiles; a task she executes with great joy.

“I didn’t go into this business because I didn’t get a job. That’s the intention I brought here; to promote our textiles. I already knew how to sew and do some creative things,” she said.

Maame Adjoa makes other creative items like bags, earrings, necklaces and footwear, using materials she procures from her home country.

A shirt and dress, for instance, cost between 30 dollars and 50 dollars, respectively. Major customers for both Alhaji and Maame are tourists, especially, whites.

Maame Adjoa arranging some Ghanaian textiles in one of her shops

For Maame, she tries to convince them to sew instead of selling the raw materials to them.

The motive, she explains, is to sew something nice for them so when they take it to their home countries ‘the good name of our textiles can also go far’.

Of significant importance to their business, however, is the weather which plays a major role in the patronage of their products.

They say business slows down in winter because most people are often indoors only for it to pick up in summer when people are out and about.

The weather, at the time of my visit, was windy at night but moderately sunny during the day, which means a reasonable number of people are always out especially in the day.

Joanna Kim, a Korean had gone to the craft markets dotted around Cape Town to buy some dresses.

Spotting a beautiful African material-made pair of shoes and earrings, she says she is attracted by the colours of African-made textiles.
“I like the colours: red, black, yellow, and green; they are totally different from Asian things. I buy these craft items, once a week”, Joanna emphasized.

I also met Dennisse, who was on a ten-day visit from Istanbul, Turkey. According to her, she patronises Ghanaian textiles because they are ‘local and exotic’.

“We don’t have in our country. I am getting most of them for my family and myself”.

Ghana’s textile industry has been plagued by international trade liberalisation policies and programs which allow cheap textiles, especially, from China into the local market to compete with Ghana-made products.

However, prospects are good for these two Ghanaians abroad and many others who may be engaged in similar ventures.

 

Mine workers to withdraw services over threat on their lives

Mine workers have served a notice they may be forced to withdraw their services to the mines if the state cannot guarantee their safety.

Illegal mining, known as ‘galamsey’, remains a threat to life and property at the mines as workers constantly come under attack from intruders.

The issue of illegal mining activities gravely affected the industry during the first half of the year.

In the period under review, mining companies such as the AngloGold Ashanti and Obuasi Mine have witnessed a fearful attack by illegal small-scale miners on its concession, resulting in the death of a top management staff.

Also, Owere Mines in Konongo was not spared by the activities of illegal miners who invaded and took control of the mine’s concession for weeks, while owners and staff watched on helplessly.

Anglogold Ashanti, for instance, has out of desperation, sued Ghana government at the international Court of Arbitration over the issue.

Government in a response to the suit assured the mining giant that law and order will be restored at its concession in Obuasi.

“Today, our cherished members are living and working in fear. Their safety and security cannot be guaranteed anymore given the organised, sophisticated and aggressive nature of these ‘galamseyers’ and their attacks on these concessions,” General Secretary, Ghana Mineworkers’ Union, Prince William Ankrah has warned.

Prince William Ankrah (General Secretary of Ghana Mine Workers’ Union)

Government, last year amended portions of the Minerals and Mining Act 2006 (ACT 703) that criminalizes illegal small scale mining activities as well as the confiscation of mining equipment from illegal miners.

Some industry players, however, blame government for appearing to fuel the perpetuation of this illegality which sounds quite worrying and disappointing, to say the least.

Mr. Ankrah indicated, “we reluctantly, however, wish to commend the government for taking the bold decision to amend the law with the view to dealing substantially with this menace”.

The Union believes that enforcement of the law still remains a major challenge and needs to be looked at closely and done devoid of politicisation and cronyism.

The General Secretary of the GMWU, Prince William Ankrah made the revelation in his address at the Union’s National Executive Council meeting in Kumasi.

At the Union’s National Executive Council meeting in Kumasi, Mr. Ankrah revealed the group will have to take precaution to protect members.

The Association, therefore, calls on government to renew its commitment and intensify its fight against this ravaging menace swiftly.

Story by Prince Appiah

Oil companies owe Ghana over $700,000

Nine out of 16 oil companies failed to pay a total of $721,000 in surface rentals to government last year, according to the Public Interest and Accountability Committee (PIAC) 2015 annual report.

The default means a 61% drop in expected revenue from the sector.

The PIAC is a citizens-led statutory body established under Section 51 of the Petroleum Revenue Management Act (Act 815) to provide additional non-parliamentary and independent oversight over the collection and utilization of Ghana’s petroleum revenues

Licensed upstream companies paid $465,920 in 2015 compared to about $907,501 in 2014, representing 49% drop, according to the Ghana Revenue Authority and Bank of Ghana 2016 report.

Policy think-tank, Africa Centre for Energy Policy predicts increased government borrowing due to short fall in the oil sector revenue.

“This is a very bad thing and I think it will affect government revenue”, says the Head of Policy at ACEP, Dr. Ishmael Ackah.

About 30 oil companies have been registered but only about half this number is not on site.

“Some are now going to raise funds to look for the oil meanwhile we have given them provisional licences”, Dr. Ackah laments.

Beginning every year, government prepared the budget, it considers surface rentals and corporate tax among others as part of expected and projected revenues for the year.  So if a company doesn’t pay, according to Dr. Ackah it will lead to a revenue short fall.

“And it will force the government to borrow which wouldn’t have been the case if we were dealing with credible companies,” he said.

Meanwhile, the Centre for Economic and Business Research (CEBRE), suggests licences of defaulting companies must be revoked.

Oranto/Stone Energy for instance has not honoured surface rentals of 67,438.36 US Dollars outstanding since February 21, 2013.

According to Ghana Revenue Authority, owners of the company cannot be traced; it is therefore likely the invoice amount would have to be written off as bad debt.

The 2015 PIAC report recommended that the GRA must initiate the process to recover all outstanding surface rentals owed by the upstream companies to the government-with applicable penalties.

But Executive Director for CEBRE, Gordon Newlove Asamoah says insists such penalties are not severe enough to deter others from the practise.

“We need to have a unified condition, so that conditions for company A should be same as B, so if A is unable to meet the conditions then the license is revoked from A and given to B”.

Mr. Asamoah suggests there should be clear-cut measures to ensure other authorities in charge of ensuring payments are made are sanctioned accordingly.

This he believes will make sure the state doesn’t lose money unnecessarily to these oil companies.

According to Dr. Ackah, a competitive bidding process would attract competent companies where the best will be selected.

He is worried government continues to negotiate with companies under the current structure, which has resulted in companies that don’t have the capacity.

Story by Prince Appiah

Mining sector responsible for over 9,000 jobs in 2015 – Study

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Some 9,939 people have gained direct employment in Ghana’s mining industry last year alone, according to a new study.

The study by Steward Redqueen and the Africa Centre for Economic Transformation (ACET) shows that expatriate jobs in the sector accounted for 2%, or 177 jobs, of the total employment figures in the sector, in line with local content law.

The Steward Redqueen and ACET research report also suggests that for each $1 million of local procurement, about 105 jobs are supported in the local economy. It also suggests that a 25% increase in local procurement would culminate in the creation of 9,000 jobs and value addition of $50 million.

Some 28% of the over $3.3 billion mining revenue in 2015 was spent on purchases from local companies, the report revealed.

Also, the study found that the number of indirect and induced jobs created by mining is about fifteen times the number of direct employees.

The study further finds that the normal extended family support provided in Ghana by employees suggests that there are also 8 to10 family members supported by each direct employee.

Commenting the findings, the Ghana Chamber of Mines said the development in Ghana’s mining sector can be attributed to successful implementation of National Supplier Development Programme.

The Programme is meant to support local companies deliver selected inputs for the mining industry and serve as a catalyst for the local production of mining sector inputs that could be produced competitively in-country.

“Instead of using foreign exchange to import, now we will be in a position to produce locally and conserve the scarce foreign exchange which goes to strengthen the local currency. It was such an important exercise to do”, Chief Executive of the Chamber, Sulemana Konney, told Luv News at a stakeholder meeting in Kumasi.

In the fourth quarter of last year, eleven more items were added to the list by Minerals Commission expanding the procurement list to 19 items, a move Mr. Konney believes will enhance local manufacturing.

He said Ghana’s local content law provides a window for integrating the minerals sector into the larger economy through value added inputs and services from indigenous sources.

Beyond the headline contributions of mining, he notes, the significance of the sector can be magnified if there are well-defined linkages with the non-mineral economy.

He said Asanko Gold Mines, Ghana’s 13th mining company which is located in Manso-Nkran in the Amansie West District of the Ashanti region is a good example of how local businessmen and entrepreneurs are taking advantage the sector.

Story by Prince Appiah

Chamber of Mines to form Development Fund supervisory committee

CEO-Ghana Chamber of Mines
Sulemana Konney

The Ghana Chamber of Mines is due to set up two committees to oversee effective implementation of the Mining Development Fund Law, a special fund to be created in and for mining communities.

One of the key structures is a governance board which will oversee how the monies are going to be utilized.

“When the royalties are returned from the consolidated fund to the special fund which will be set up at the community level, these will ensure that these monies are used judiciously for the benefits of the community, not some few people,” Chief Executive of the Chamber, Sulemana Konney told LUV FM.

Parliament passed the law last year to allow mining communities to effectively and efficiently utilise mining royalties.

However, officials are expectant that once the legislation is outdoored, they will speed up with these structures to enable the realisation of the benefits of the act.

Mining firms are worried the poor conditions in operational communities paint a bad image of an industry contributing hugely to national development.

According to Ghana Revenue Authority Report, 485.6 million Ghana Cedis was paid as mining royalties to the state in 2015.

Nine per cent of the amount, some of which has been in arrears for three years, goes to mining communities.

Records reveal over GH¢160,792,149 was ploughed back into mining districts between 2011 and 2015.

But there are questions as to whether there are manifestations of commensurate development.

Authorities in host communities often blame irregular disbursement for the ineffective utilization of royalty funds for development.

Sulemana Konney says the initiative has the potential to address the developmental imbalance in mining communities.

Meanwhile, the Chamber of Mines continues to advocate mining royalties be increased from 9 to 30 percent with future payment  tied to specific projects to inure to the benefit of the people within the community.

Story by Prince Appiah

Stronger CSOs needed to police Ghana’s oil and gas industry

http://www.dreamstime.com/stock-photography-oil-gas-barrels-drums-symbol-image18662932

The Principal Consultant to the Association of Caribbean Experts is proposing active participation of civil society in Ghana’s oil and gas industry.

Dr. Anthony Paul says strong and effective civil society participation will help to minimize potential mistakes in the industry.

He revealed the absence of such strong institutions means some oil producing countries encounter challenges at production stages.

Dr. Paul says not only should civil society groups be visible, but they must have the capacity to demand transparency and accountability from government.

In an interview with Luv Biz on the sidelines of Oil and Gas training programme for some selected journalists in Accra, he said the civil society organizations should scrutinize activities of the industry on behalf of the citizenry.

The Africa Center for Energy Policy (ACEP) and Integrated Social Development Centre (ISODEC) has been critical on some government decisions especially on some oil contracts.

Dr. Paul says the development is a good start for Ghana.

“Ghana must work on the accountability systems and procedures, those that people can say this is how the decision was made, that part will be important”. He stressed.

To maximize the full potential of gas production in Ghana, experts say strong state institutions are also required.

According to Dr. Paul, building capacities should not be focused on training people but building systems and procedures putting them in place so that people are held accountable.

“Build capacities not only in regulators but also in state companies because they need technical competence, yes, but they are also businesses and need these strong systems”, he explained.

Meanwhile, Dr. Anthony Paul says Ghana urgently needs natural gas master plan.

Drawing on experiences and lessons from Trinidad and Tobago, which analyzed gas market and resources in the early stages of production to meet the country’s needs means an introduction of master plan is not out of place.

After 5-years of going commercial with oil discovery, Ghana has neither Gas Policy nor a Gas Act, situation experts have warned of dire implications.

Ghana’s Gas Processing Plant at Atuabo has a 150 million metric standard cubic feet production capacity of gas per day.

In the last quarter of last year, however, the plant struggled to produce 80 million metric standard cubic feet of gas.

Ghana Gas Company has therefore had to spend millions of dollars to import gas from its Nigerian counterpart, Nigeria Gas.

Energy experts observe Ghana’s gas industry potential remains untapped and under-utilized.

Fingers have always pointed at the absence of regulatory laws for the sector.

Instead, the country is focusing on short- term action plan targeted solely at supplying to power thermal plants to resolve the crippling national energy crisis.

Despite assurances from Petroleum Minister, Emmanuel Armah-Kofi Buah announcing in September 2015 of Gas Master Plan being finalized, the situation remains unchanged.

The MASTER PLAN will provide a transparent regulatory framework to man the industry.

The gas industry in Trinidad and Tobago is a model worth emulating across the globe.

“Ghana urgently needs natural gas master plan”, Dr. Anthony Paul, says.

What Trinidad did very early on was to analyze the gas resources, the country needs, analyze the markets for gas.

They analyzed the country’s vision and aspirations, and designed a Gas vision in line with and supportive of the national development vision.

So this means that, the choices they made on how to use natural gas depicted how they are exploiting it, how to price it and what they will get from it.

All of these decisions were driven by a national vision.

This means, Ghana’s plan must be in line with our national vision by drawing lessons from Trinidad and Tobago.

 Story by Prince Appiah