Former Ghana Airways workers to receive $2.5m arrears

Former staff of Ghana Airways, now Ghana International Airline (GIA), would from the beginning of next year (2009) receive an amount of $2.25million, being arrears owed them by Ghana Airways, the Official Liquidator airline firm.
The amount is expected to be paid to the former employees within the 2008 national budged cycle. When the amount is paid, it would thus close the dispute chapter between the OL and the former workers.
This was contained in the sixth edition of the progress report prepared by PricewaterhouseCoopers and released in Accra over the weekend.
“As indicated in the fifth creditors report, with the support of the Government of Ghana (GoG), the OL negotiated and agreed severance payments of about US$6.5million with former Ghana Airways employees, excluding pilots and flight engineers, who initiated legal action against Ghana Airways and GoG at the High Court in Tema for their severance claims”, stated the report.
From the report, in partial fulfillment of its severance obligations to the former workers, $4.25million has already been paid in two installments, following the out of Court settlement with the OL.
The remaining arrears ($2.25) exclude severance payments due to former pilots and flight engineers amounting to about US$1.3million, which was settled in December 2006.

Ghana Airways realizes $3m asset

The Liquidated Ghana Airways has achieved an additional asset realization of approximately US$3million, according to a sixth progress report prepared by PricewaterhouseCoopers.
This amount was realized from the $25.4million reported in its fifth creditors report, due mainly to interest earned from treasury management as well as proceeds from commercial agreements.
This new development has thus enhanced the OL’s asset to approximately $29million.
“We have achieved additional asset realization of approximately $3million from the about $25.4million reported in the fifth creditors report, bringing the total to approximately $29million”, the report indicated.
The amount realized has ignited the hope of the OL, which it believes could realize more assets by the close of the liquidation. “We expect to realize a total of about US$33million by the close of liquidation”, the report stressed.
According to the report, the OL has also been able to resolve its disputes over two properties, which were the subject of ownership claims by third parties.
Among the resolved disputes are those between the OL and the Adum Stool Land, which was a subject of an ownership dispute between the two parties.
The second one was between the OL and the Ministry of Water Resources, Works and Housing (MWWH) over the ownership of three Ghana Airways Castle Road flats, which the OL sold to the office of the Administrator of stool lands in 2007.
From the report, the dispute between the OL and the Adum Land was settled amicably following the latter’s intention to repossess the property unless the OL agreed to pay them greater portion of realizations to be derived from the sale of the property as assessed by Assenta Property Consulting, a local company in February 2005.
The report said series of meetings were held between the two parties (OL and Adum Stool Land), with OL agreeing to assign its interest in the land to the Adum Stool.
The OL thus received an amount of US$30,000 from the stool as consideration for the assignment of its interest in the land.
“The property, which was subject of an ownership between Ghana Airways and the Adum Stool Land was valued by Assenta (in February 2005) for about US$60,000.
Based on this valuation, the OL agreed to assign its interest in the land to the Adum Stool Land for US$30,000”, the report indicated.
The dispute between the OL and MWWH was also solved amicably.
Based on a meeting the two parties had in April 2008, MWWH agreed to give vacant possession to the three Ghana Airways’ Road flats to the OL at the end of the month (June 30, 2008).
This agreement by MWWH would enable Ghana Airways to do same to the Administrator of Stool Lands, according to the report.

RedBack mining company cries foul over increase in electricity tariffs

RedBack Mining Incorporated, operating in Ghana as Chirano Gold Mine, has expressed dismay about government’s increase of electricity tariffs without engaging the mining industry.
The President and Chief Executive Officer of RedBack Mining Incorporated, Richard Clark, on the company’s website said "The recent announcement in Ghana regarding proposed increases in power costs for bulk users is unfortunate, as the decision appears to have been made without any formal discussions with the mining industry. We appreciate the situation which Ghana faces, regarding the escalating oil prices and we remain ready to work with the government towards adjusting to this reality,” he said.
“Through the Chamber of Mines we look forward to reaching an acceptable compromise which takes into account Ghana's requirements and also recognizes the cost challenges to the gold mining industry and the interests of our shareholders," Mr. Clark observed.
Though the company believes that the government’s policy of increase in electricity tariffs for mining companies, steel mills and other high voltage consumers to about 100%, as a result of higher world oil prices, is in the right direction, much could have been achieved if the government had engaged them in discussions about its intentions.
According to a release on the company’s website, “Red Back has not been party to any formal discussions or negotiations with the ECG or any other government body, and therefore any increase to this point has been determined without consultation with Industry.”
The release further states “We have joined with the Ghana Chamber of Mines and other mining companies in commencing discussions with the relevant governmental agencies, regarding the size of this increase and the apparent focus of this increase on the mining sector.”
According to the statement, even though the company is aware that the cost of power from the national grid in the country (Ghana) will take effect from today, July 1st 2008, it has not received any official notification from the Electricity Company of Ghana (ECG).
To the company’s understanding, the cost of power could increase from the current level of approximately $0.10 per kilowatt an hour (kWh) up to approximately $0.22per kWh.
The statement, however, indicated that the situation would greatly affect the company’s operations if the cost of power reaches $0.22per kWh.
“At $0.22 per kWh power cost would affect Chirano cash costs by approximately $40-$50 per ounce. On a Life of Mine basis (using $0.22 per kWh for power), estimated cash costs are projected to be approximately $430 per ounce, still at the lower end of the cost curve for gold mining companies”, the statement added.
It would be recalled that government last week announced a ‘Bulk Generation Tariff’ of Gp16.91 per kilowatt an hour for mining firms, steel mills and other high voltage consumers. This translates into an ‘End User Tariff of Gp 22.31per kilowatt per hour.
This announcement has raised eyebrows in the mining Industry, of which the Chamber of Mines yesterday met with stakeholders in the industry to take a decision on the announcement.

United Bank for Africa partners Gateway Broadcasting Services

The United Bank for Africa Ghana Limited (UBA) and Gateway
Broadcasting Services (GBS), on Wednesday entered into a strategic
alliance to provide efficient services for Ghanaians who have subscribed
onto the services of GBS.
This initiative by the bank (UBA) falls in line with its commitment to ensure comfortable, secured banking and payment services to its clientele
nationwide.
“In line and consistent with our mission to democratize banking in Ghana, we have therefore been working towards maximising customer satisfaction by engaging in some key strategic alliances”, noted Nnanmdi Okonkwo, Managing Director (MD) and Chief Executive Officer (CEO) of UBA
Ghana, at a joint press briefing with GBS in Accra.
A Memorandum of Understanding (MoU) was signed between the two
corporate entities to that effect.
Under the alliance, existing subscribers of GBS can conveniently pay their subscription bills at any UBA branch location nationwide. The alliance also sees UBA Ghana partnering GBS for its consumer promotions, which offer
special prices on their installation and bouquet.
The agreement affords UBA to use its Information Technology (IT)
infrastructure which is devoid of manual manipulation to offer convenient
and safest platform for payment of GBS subscription bills. The platform,
which is highly automated with efficient transaction solutions provides a
cost-free service to clients on GBS subscription.
According to the CEO of UBA, his outfit entered into the strategic alliance with GBS because “GBS shares the aspirations of UBA which is to offer widely accessible products via their pay-TV service at affordable prices to Africans irrespective of their geographic location and or socio-economic status”.
He also disclosed that his outfit was attracted to deal with GBS because of its ever-increasing clientele base, which has hit about 23,000 subscribers within a period of one year of its operations in the country.
“At UBA, we believe that the best companies are the best collaborators and as Africa’s global bank, we want to partner with brands that support
innovative and enterprising initiatives. Our partnership with GBS will lead to a new era of best-in class payment services for subscribers and the rest of Ghana using the channels earlier highlighted”, said Mr. Okonkwo.
Under the partnership, consumer promotions would be held periodically to
offer prospective clients the opportunity to own a full GBS package for free
or at special offer prices.
The General Manager of GBS, Michael Yamson expressed his profound gratitude for the alliance saying “this is one of the most exciting partnerships that GBS has entered into, following the very successful partnership with the Ghana Football Association that makes GBS media rights owner to the
Ghanaian Premiere league for the next three years”.

Ghana to lose GH¢92.47

Ghana is to lose GH¢92.47million as a result of the temporal measures taken by government on the removal of tariffs to cushion the economy. This was made known by the Minister of State at the Ministry of Finance and Economic Planning (MOFEP), Anthony Akoto Osei at a press briefing in Accra.
The government, as part of measures to mitigate the rising cost of crude oil and food on the global market announced the immediate implementation of the removal of import duties on rice, wheat, yellow corn and vegetable oil. Government also announced the removal of excise duty and debt recovery levy on premix oil, a reduction in the excise duty and debt recovery levy on gas oil, kerosene and marine gas oil.
Increase in government support for the production cost of electricity to bring relief to domestic consumers and the subsidization of the cost of fertilizers to farmers to ensure good harvest.
Importation and stock pilling of additional supplies of rice and wheat to enhance food security and increased supply of tractors at subsidised rates to farmers were also announced, in order to bring reprieve to farmers and consumers in general.
Among the measures taken by the government, food imports would lose a total of GH¢43.07 to the state, which include; rice (GH¢33.72), wheat (GH¢5.38), yellow corn (GH¢0.04) and vegetable oil (GH¢3.39).
On petroleum products, the country would lose a total of GH¢49.4, that also includes; excise duty (GH¢23.9) and debt recovery levy (GH¢25.5).
Subsidies for the supply of fertilizer is also expected to cost about GH¢11million, according to the Minister. According to Hon. Akoto Osei, subsidies for tractors that were included in the relief measures may not be quantified immediately

Mining companies to pay higher tariffs

Mining companies in the country would from the beginning of next month (July 1st, 2008) pay higher tariffs on energy (electricity) consumed for their operations.
Steel mills and other high voltage consumers of electricity would also be affected.
This move by the government falls in line with its measures to help resource the Volta River Authority (VRA) and the Electricity Company of Ghana (ECG).
The mining companies, together with other high voltage consumers would pay a ‘Bulk Generation Tariff’ of Gp16.91 per kilowatt an hour. This translates into an ‘End User Tariff’ of Gp 22.31 per kilowatt per hour.
Other category of consumers would remain at their current tariff levels, according to the Minister of State at the Ministry of Finance and Economic Planning (MOFEP), Anthony Akoto Osei. He said this at press briefing in Accra on the state of the economy. “The tariffs will help improve VRAs finances,” he said.
He, however, urged consumers who were not affected by the tariff increment to conserve energy appropriately.
The use of hydro component for generation would also be increased in addition to increase in tariffs for the high voltage users, while the emergency power plants would be shut down.
Hon. Akoto Osei averred that some free flow of gas from the West Africa Gas Pipeline has already started and supply is expected to be accelerated soon.
These measures taken by government stemmed from the fact that the nations crude oil import bill has risen from US$5OOmillion in 2005 to US$2.1billion as at the end of 2007. A report from the MOFEP indicates that the trend has not reduced but has kept on moving to US$2.5billion for the same quantity of oil.
“This is the result of the escalating crude oil prices at the world market, a phenomenon which threatens to throw the budget out of gear, reducing the country’s foreign exchange reserves and inflaming inflationary pressures. A combination of measures is being pursued to ensure that these developments are mitigated,” noted the Minister.
According to Akoto Osei, the measures taken by the government is expected to cushion the economy, thereby providing a reprieve to consumers in the country.
“These measures are expected to result in a significant reduction in crude oil imports and would lead to enough savings to help the fiscal position and conserve foreign exchange”, noted Akoto Osei.

FAO calls for more funds to fight against illegal fishing

The Food and Agriculture Organization (FAO) on Tuesday, in Rome, called for more funds to help it fight against illegal fishing in developing countries.
The FAO has thus appealed to its donor countries for US$1million to support its project that has been designed to help deny port access to boats involved in Illegal, Unreported and Unregulated (IUU) fishing.
“In the developing world, fishing plays a crucial role in reinforcing household food security, improving nutrition, and providing income. In light of rising world food prices and growing concern over the wellbeing of some wild fish stocks, we can afford less than ever to allow IUU fishing to impact these communities,” said FAO Assistant-Director General for Fisheries, Ichiro Nomura at a briefing session with donor countries.Report from the organization’s websites indicates that the funds would be used to finance an ongoing FAO project launched in 2005 when the UN agency developed a Model Scheme for stronger “port state measures” that could be adopted by countries in order to combat IUU fishing.
The Port State measures include activities such as undertaking inspections of
documentation, catches and equipment when boats land to take on fuel and supplies or
offload fish or requiring vessels to make activity reports before entering port.
Vessels found to be involved in IUU fishing can be denied docking rights, causing considerable financial losses to their owners. Such measures are among the most-effective means of preventing the import, transshipment or laundering of illegally caught fish. IUU fishing is particularly problematic in the developing world, where limited funds and expertise mean that oversight of fishing activities in coastal waters is often lax and port controls are weak. IUU fishers target developing countries because they provide
convenient entry points for illegal catches.
"These countries need exposure to state-of-the art practices, training for their line officials, and to establish better lines of communication at the regional level to share
information on offenders and harmonize actions,” said Mr. Nomura.
To meet these needs, FAO initiated a series of regional workshops in order to assess the status of port state measures in different parts of the world, identify ways regions might incorporate components from FAO’s Model Scheme, and promote greater harmonization of port state measures. The workshops are targeted to port inspectors, fisheries
authorities, legal experts, foreign affairs officials and customs officers.
Nomura added that momentum is building towards the adoption in the near future of a legally binding international agreement on port state measures based on the FAO Model Scheme, lending additional urgency to the need to build national capacities for
implementing effective port state measures.
“The workshops will allow countries to hit the ground running when the international agreement comes into force,” he said.