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Some members of the Friends of Nana Konadu Agyemang Rawlings (FONKAR) in the Ashanti Region say they will go ahead and campaign for the ruling National Democratic Congress (NDC) in spite of speculations that Mrs Rawlings may contest for the presidency in the December polls on the ticket of the newly created splinter party.

 

According to the Ashanti Regional Coordinator for FONKAR and a  member of the National Democratic Party (NDP) Abdul Rasheed,  the presence of former President Rawlings at the NDC manifesto launch is an indication that some level of and unity discipline is creeping back to the party hence the need to support the party to win in the upcoming polls.

 

In an interview with XYZ News Ashanti Regional Correspondent Isaac Bediako Justice, Abdul Rasheed said “FONKAR was formed to correct certain wrongs in the NDC. We pursued it to the congress we saw no change after the congress and whether good or bad, there has been a change of leadership”

 

He believes President Mahama has brought some sense of discipline and some appreciable level of unity into the party “for which the founder of the party himself has acknowledged.”

 

Abdul Rasheed said former President Rawlings’ presence at the party’s manifesto launch and congress clearly shows that he is willing to join the party to campaign for victory in December.

 

We have read and listened to the NPP’s arguments delivered in two press conferences in quick succession on 25th September, and 2nd October, 2012, respectively on an issue that did not have to be in the public domain in the first place except for political mischief making. We mean the Engineers&Planners and Merchant Bank loan transaction.

 

It is clear from information available publicly that the only reason for the NPP ‘s antagonistic stand on this financial transaction between Engineers& Planners and Merchant Bank is the fact that the owner of the company, Mr. Ibrahim Mahama is the brother of the President of the Republic, His Excellency John Dramani Mahama. The NPP is trying very hard to smear the President when indeed there is nothing untoward in the said financial transaction in question, and the President had absolutely nothing to do with it.

 

Engineers&Planners obtained a financial facility of some US$43 million from a consortium of Ghanaian Banks that included Barclays Bank, Ghana Commercial Bank and Merchant Bank, with Merchant Bank as the Lead promoter in 2007, when the NPP was in power. The agreement for the loan repayment i9n 2007 was for a five(5) year period at monthly repayments of US$746,000.

 

In less than a year, in 2008, in most bizarre unexplained circumstances, very queer in financial transactions, Merchant Bank unilaterally abrogated the original terms of the loan transaction and requested Engineers&Planners to redeem the facility within 23months at a repayment rate of US$2.3million per month. That was after Merchant Bank had taken steps to buy both Barclays and Ghana Commercial Banks out of the business.

 

Clearly, such a turn of events is most unusual in financial transactions involving banks. Even SHYLOCK himself would have been more considerate. Banks must and indeed do undertake very thorough assessment of projects for which a loan is sought, make their own assessments, projections of the returns, profitability as well as the risks involved before coming to terms with the client.

 

Such completely unprofessional behaviour of Merchant Bank could only to put down to outside interference in the professional management of the affairs of the Bank. In the case of this loan transaction between Merchant Bank and Engineers &Planners, it was political interference on the part of the NPP Government in 2008, which led to the difficulties imposed on the company. Banks exist to assist businesses to succeed not to put impediments in their way with the sole aim of making them fail as we have seen in this particular case.

 

Desirous of maintaining its reputation as a first class contracting firm, Engineers &Planners entered into terms with Merchant Bank for restructuring of the loan facility and final settlement of the remaining US$28million which is currently outstanding.

 

Why this purely private financial transaction should become a political issue to be championed by the New Patriotic Party can only be best explained by themselves.

 

It has become common knowledge now that the total exposure of Merchant Bank to its debtors is about US$330million of which only 28million is owed to it by Engineers&Planners. This amount is said to be only 19% of the total loan portfolio of Merchant Bank. Why is the NPP not interested in the remaining debts totalling 81% which is currently outstanding and due to Merchant Bank? NPP’s behaviour can only be explained by an inordinate desire to play political mischief by linking the name of the President of the Republic to a purely private transaction in which he was not involved in anyway.

 

It is most refreshing to note that Engineers&Planners is a very viable Ghanaian company which is not in distress in anyway and is therefore capable of redeeming the remaining amount of the loan as detailed above.

A cursory look at the company’s assert base reveals the following equipment holding, which list is by no means exhaustive, but it will give you an idea of the company’s strength and standing.

 

1. Twenty dump trucks @US$2.5milliom each =US$50milliom

2. Five excavators @US$5milliom each =US$25milliom

3. Seventy small dump trucks @US$650,000 each =US$45.5million

4. Forty bull dozers @1.3milliom each =52milliom

5. One hundred and twenty tippers @ US$200,000 each =24million

6. A modern jet plane

 

In addition the company has the largest chicken farm in the country which currently produces 150,000 eggs per day and capable of processing 10,000 chickens in a day.

 

Engineers&Planners have contracts with Mittal steel company of UK, one of the largest steel companies in the United Kingdom, whose mine it is developing presently in Ghana. It is also working for a Canadian mining company, it has two contracts with Gold Fields of South Africa. It also has contracts in Liberia and is in the process of entering into another mining construction contract in Congo Brazzaville. This is the strength of Engineers&Planners.

 

What is intriguing about the NPP’s posture today is that Engineers&Planners owned by Mr. Ibrahim Mahama represents a Ghanaian business success story which must be celebrated by all well meaning Ghanaians, encouraged to achieve more and be a role model for young up-coming Ghanaian entrepreneurs.

 

As a developing country, we certainly need more of such Ibrahims to propel our development to higher heights and not to pull them down as the NPP is doing. Even more distressing is the wrongly held notion that the NPP is a political party of businessmen and women and professionals which will do everything and anything to promote and protect genuine Ghanaian businesses such as Engineers&Planners. Has this not turned out to be a total fallacy?

 

a. Why is the NPP now doing everything in their power to destroy Engineers&Planners, a Ghanaian business success story?

b. Is the NPP not being vindictive because Ibrahim Mahama is not one of them.

c. Will the NPP not target and destroy Ghanaian businesses on political grounds if ever they come to power?

 

The NPP’s present posture brings to mind bitter memories of their concerted efforts soon after coming to power in 2001 when they haunted City and Country Waste Company into extinction on the mere grounds that Mr. Eddie Annan the owner of the Company is an NDC member. The same can also be said of Carridem of 31st December Women’s Movement which bought the former Nsawan Cannery. They put an embargo on the sale and Nana Konadu Agyeman Rawlings was dragged to court for the whole of the eight years that the NPP was in power. NPP withdrew the case in 2008 only when they saw defeat starring them in the face after losing the first round of the elections of that year.

 

Most often than not politicians, the NPP in particular would haunt Ghanaian businesses out of existence while shamelessly paying lip service to the saying, ‘the private sector is the engine of growth’ of the Ghanaian economy. They will give every assistance to foreigners who parade their corridors most often without a pesewa in their pockets to establish viable companies and repatriate huge amounts of our hard earned foreign currency out of our poor country to the detriment of Ghanaians.

 

Let the NPP realize the great harm they are doing this nation and our ability to grow our own businesses which then grows our economy.

 

We take this opportunity to salute and to congratulate the National Democratic Congress(NDC) on their continuing collaboration with Messrs RLG Communications and Zoom Lion Waste Management Company, two Ghanaian companies which are making huge strides providing employment to our youth and contributing enormously to our economic growth.

 

Let all of us stand up for the Ghanaian in whatever sphere of life we find him or her. That is the only way we can grow our economy, grow our nation and grow our democracy. Let us say no to this political witch hunt. Let us stand up for IBRAHIM Mahama and his Engineers&Planners in this most trying times.

 

FOR AND ON BEHALF OF :

THE DEMOCRATIC

INSTITUTE OF GHANA

SIGNED

E. M. N. AMETOR-QUARMYNE

RECTOR

The Institute of Economic Affairs will this week announce new date for its presidential and vice presidential debates.

 

The governance think tank was today expected to have begun the debate in the northern regional capital Tamale per its own timetable.

 

But executive director Jean Mensah tells Joy News a new date will come out soon.

 

She also disclosed that instead of the three earlier advertised; only two to be held in Tamale and Accra.

 

Meanwhile, the IEA has rescheduled its encounter with President John Dramani Mahama to October 18.

 

The encounter was originally scheduled to take place today, but it is unclear why the date has been moved.

By Kofi Bentil

Imani has analysed the proposals from the NPP regarding Free Secondary
Education, and concluded that, as the proposal is now, it is not
appropriate to deliver what Ghana’s education system requires, indeed
it is likely to create more problems than it will solve.
The figures put out by the NPP are also not accurate, and the whole
idea, attractive as it may seem may overwhelm our education management
system which is already stressed.

We believe there are clear problems with the education system and it
is not difficult to tell that Free education will not deal with them.
A focus on the real problems and a closer look at the alternatives
will reveal better options which indeed will cost less and achieve
more.

Most of our people may not take the time to do the real analysis of
such a proposal so it is easy to get people to accept a promise of
free education without considering the real effect such a policy can
have, but Leaders must do the hard work and tell everyone exactly how
the considerable resources to be expended will solve the problems with
our education system.

Education is crucial to everything so it is understandable that is a
lot of emotion around this matter, but we urge a cool calm
consideration of the issues and a reasoned conclusion on which
alternative is best for mother Ghana. If we get this wrong we could
seriously derail our country on various levels economically socially
etc. education is not just important, it is everything.

It is important to state at this point that contrary to the news
headlines which the media adopted i.e. IMANI SAYS GHANA DOES NOT NEED
FREE EDUCATION, IMANI IS NOT AGAINST FREE EDUCATION PER SE, indeed our
position is that we will be paying either directly or through Taxes,
so it is not really free, furthermore, we will embrace any policy
which would solve the problems, and expose any policy which would
spend tax funds and not solve the problems.

What we are debating is not the importance of education, it is
important to state that REGARDLESS OF HOW MUCH IT COSTS we will
support ANY policy which solves the problems of education because IF
WE SOLVE THE PROBLEMS WITH EDUCATION WE WILL MAKE UP ANY AMOUNT SPENT
ON IT! Nothing is too expensive for education. Education is not on
trial, it is a specific policy which we are interrogating.

We also have to state that We have no doubt as to the good intentions
of the NPP. It is a noble thing to even dream such audacious dreams
about education, but we must also know that good intentions do not
automatically lead to good ideas and implementation. The intention may
be excellent, but the ideas and strategy on how to arrive at the
solution may be wrong and even if they are right they could be
implemented wrongly. This is why many leaders across the world have
failed although they wished their people well and were determined to
implement their dreams, many examples abound about how leaders have
had great dreams which went wrong and left their countries backward
and suffering. We need to learn and avoid problems we can avoid.

To clarify the issues, we need to state clearly what we are dealing with
1. NPP intends to make secondary school education free, i.e. no one
will pay fees for going to SSS. (tuition, B&L)

2. As part of the program, BECE will be abolished and JSS students
will automatically move to SSS. (what selection criteria? Lottery,
what about academic merit? A bloom in corruption “special random” the
current system is fair)

We also have to be clear that all these efforts are aimed at solving
the problems in our education system, fortunately these problems are
not hard to define and obvious to many, if an idea is likely to solve
the problem it wont take great analysis to know, and if it cannot, it
would not take a lot of analysis to tell. These make it easy for the
average person to understand the basis of our position.

The problems in our education system (specifically SHS) are as follows:
1. The poor don’t get access to the best SHS because they are not able
to pay for good JHS which will enable them to pass well and beat the
competition for spaces at SHS. Those who pass JHS well get admission,
then the problem of money arises.

2. There is a shortage of high quality SHSs across the country. The
best schools are collected in few areas and have limited capacity.

3. The poor have a problem paying for SHS even when they get admission
and help from the scholarship system which is designed to help them is
not forthcoming because the scholarship secretariat has lost its way,
and become so opaque in its dealings, hardly anyone knows how it
works, and how to get help from it even if you qualify for help.

These are some of the key problems affecting the SHS system only. The
problems of education stretch beyond SHS but affect it, solving SHS
alone wont solve the whole education problem, a holistic view is
required to ensure that:

a. Children enter school at the right age, and stay in school until
the right time for leaving

b. Children get good quality teaching and learning all through school
at every stage

c. Children do not drop-out but can exit at particular points to
branch into the tertiary systems whether to continue on an academic
path or to enter the trades and other professions

d. Regardless of how they terminate, our people have access to go back
to acquire further knowledge if they desire

The are solutions to these problems, they will all cost money, but
money is the easier part, these problems will require serious
strategizing and then the money applied would yield the right results.
We must admit that we have had a history of tinkering with education
and in the name of reforms we have uprooted our education system many
times since Kwame Nkrumah, each time the verdict is that the new
system is worse than the one just uprooted. This is because not enough
strategy goes into these ‘reforms’ they are based in the emotions and
ideologies of the current leader(s) and technocrats just follow on in
a servile manner without much question.
We have learnt our lessons, or so we hope. This is why we are speaking
up on this issue, to ensure we don’t go the same way.

The problems as listed above are prevalent in many countries and
things have been tried with varying degrees of success both in Ghana
and elsewhere, the evidence from the past attempts are as follows.
This applies to Ghana as well.

Studies from many African and developing countries in Asia[1] and even
developed nations, Free education programs have usually lead to a
destruction of quality, and emergence of a private school sector, a
hardening of the vicious cycles which keep the rich and poor education
systems apart and reinforce the socio-economic status quo, in effect
defeating the upward social mobility education it best suited to
provide.

The Free public system quickly degenrates into a farce, facilities
crumble, good teachers leave, everything reduces to a bare minimum
quality and officials just go through the motions to keep up a
semblance of a system which enables them continue to draw funding,
which is usually corruptly siphoned off. The effect is that people
(rich and poor) pay to avoid this system, they find private schools
which quickly emerge and are usually expensive, and pay to give their
children the best education they can afford. This has the terrible
effect of condemning the poorest to the bad system whilst the rich and
resourceful get out and pay for better education which in turn
perpetuates the cycle of poverty and affluence, where the rich kids
get to go on to the better Secondary schools (which ironically in
Ghana are public and subvented) whilst the poor just drop out, or end
up in low quality Secondary schools leaving them even more
disadvantaged educationally, and thus affects their university
admission and job prospects.
FREE DOESN’T ALWAYS LEAD TO GOOD EDUCATION FOR THE POOR!, if one looks
at the so called “Syto” system in Ghana, this situation is easily
identified.

In other countries the same phenomenon has been identified, in his
book ‘The Beautiful Tree’ James Tooley documented this phenomenon in a
number of developing countries. In a recent article the Economist
Magazine has catalogued how Poor people do everything they can to
avoid public schools, and in the process end up paying private persons
outside the public system to provide education, which ironically
yields better passes than the better funded public system with its
trained teachers and all. In effect Government is spending money for a
certain target (the poor) who are running away from the system because
it doesn’t work as well as the government and politicians want us to
believe.

On a matter such as Education, opinions will and should differ, but
there are things we all can agree on, to be safe we will stick to the
things we agree on and provide alternatives which hopefully are
obvious.

Our current problems with the education sector
1. Patchy Quality And Quantity. With A More Serious Problem Of Quality

2. Economic Or Social Status Tends To Determine Access To Quality Institutions.

3. Inefficiency In Administration Of Resources Towards This Sector

STRATEGY
The above problems have persisted regardless of strenuous efforts over
the years directly aimed at solving them. We should be clear what we
are looking to achieve and examine why we are where we are, and
hopefully make the right choices which have the chance to deal with
these problems once and for all.

These are the things we all want for our Education system:

1. Sufficient quality and quantity..

2. Universal access to all citizens, regardless of economic or social status

3. Sustained efficiency in administration of resources towards this sector

Over the years of trying, a few things are obvious to all persons
involved in education planning, management, policy analysis, and
administration. Such as

1. throwing money at the problem doesn’t mean it will go away

2. free secondary education will bring another layer of administrative
complexity with managing the funds, the increased demand and quality
assurance.

Another set of issues which may not be obvious but are true are that:
1. not everyone is asking for free education, indeed NO ONE we know is
asking for free education, just access to good quality affordable
education

Question is, with 50 years of such experiences, in the face of the
facts that the current proposal for free education does not include a
redesign of a different system, what makes us believe that this free
education policy would be different? We need to see what strategy will
be adopted to avoid the usual outcome of waste and failure!

What Constitutes Free Education?

There are many items which are paid for in secondary school, we don’t
expect government’s free education to pay for all of these for example
transportation to and from school, so we have reduced the list to
represent about 85% of the total cost, so parents will still bear 15%.
The items to be paid for are:
a. Tuition

b. School and Registration Fees

c. Food Board & Lodging (boarders)

d. Books and school supplies

Some enrolment statistics are as follows:
1. From Primary to JHS 67% go through 33% drop off, its free, so the
drop off is not due to money.

2. From JHS 3 to SHS1, only 37%% go through, 63% drop off, this is due
to many reasons including money and academic failure.

3. With Free Education (i.e. money removed as a problem) we expect the
same transition rates as Primary to JHS i.e. 67%.g

ABOLISHING BECE
There is the other issue of abolishing BECE. There is the need to
clarify this matter, how will secondary schools select students who
qualify. The stated policy is that JHS should no longer be a terminal
point, students must have an automatic continuance till SHS. The logic
is that if the policy is seeking to pass all students through the
education system till the end of SHS, then

1. there will be no need for BECE and a computerized selection system
to place students in SHS

2. SHS will have use other mechanisms to select students because they
cannot absorb all applications, this is especially true for the higher
quality (grade A and B) schools

3. There are fewer SHS spaces that JHS graduates so space will have to
be found for the extra students

This raises again the questions of quantity and quality, lets deal
with quantity first

The quality question is also raised, how do you justify a system which
chooses under 500 students from over 10,000 applications (as happens
in all Grade A SHSs today), when there is no merit based selection
process like the BECE, for example how is Presec or Wesley Girls
supposed to select their students.
We have heard someone (NUGs) say that the students should be placed
regardless of their capabilities and then will we see what the real
quality of the Grade A schools are, when they are able to take not so
good students and make them into high performers. Well our view is
that this approach will just destroy our Grade A schools. Every
country has its ‘IVY LEAGUE’, and this is crucial for its development,
since societies modernized, smart nations have found a way to select
the best of its people and train them to achieve the great things
which such people are capable of nobody is making the argument that
our grade A schools work magic with average students! All great
schools have a strict admissions process which allow only those with
potential to excel in. asking our good schools to take people who
could not excel at JHS and convert them to high performers is simply
destroying the best we have and that is not smart!!

History has also taught us that whenever selection is not merit based
the rich and powerful end up rigging the system to the detriment of
the poor and weak, for example imagine that Wesley girls and Presec
have to choose 1000 students from a pool of 10,000, we are very sure
that only the rich and powerful will get those spaces, those of us
without connections or wealth will never make it! This is what free
education designed to help the poor usually ends up in, a destruction
of quality and an unfair system favouring the rich and powerful.

Let me contrast that with the system we want to change, today if a
poor child passes JHS well, just by merit regardless of their economic
status they will get admission to Wesley Girls! This is because Wesley
girls selects the overwhelming number of its students each year on
merit alone!! And the evidence is placed on a board for all to see, so
if a child who didn’t do well is selected, her grades will be clearly
displayed and all will see that something is amiss. This removed the
power of the rich and powerful and favours the poor because it is
merit based!!
Now comes the problem of money, assuming the poor child gets
admission, and cannot pay the fees, (which usually is lower than the
fees paid in good JHS schools) the Government Scholarship secretariat
is there to help such people, what is going on at the scholarship
secretariat today?

We have found that regardless of economic status if a child gets
admission to a grade A school, whole families rally around and
mobilize to pay for the child to stay in school. We believe these are
the people free education money should go to help not the 80% plus of
students (who get admission to grade A schools) whose parents can
easily afford to pay the subsidized fees being charged today!!

The simple point on this is that the proposed Free education will rip
out the current system and replace it with an inferior one which
favours the rich and powerful.

We propose that if we can find money for free education then we must
use that money to support students who get admission but cannot pay
(about 30% to 50%) through the scholarship secretariat. Fixing the
scholarship secretariat and providing money to even 50% of students
will be cheaper and easier than scrapping the merit based admission
system and paying fees for all students regardless of their economic
status!.

It is a fact that not all Ghanaians are poor and unable to pay for
their children’s education, indeed many families consider it a
fundamental responsibility which they are proud to bear even if they
struggle to do so, it is a source of great pride to every parent to
say they worked and paid for their child’s education, so most people
will gladly pay if they have the means. This means not everyone is
asking for or would even accept the offer of free education, on the
contrary everyone we have spoken to on this matter expressed great
concern for quality education, if only they had access to high quality
education they would work out a way to pay for it, the problem is
getting space at a grad A school, which is more a matter of quantity
of quality schools, more than the cost of quality schools.

In a situation as this, if seems the right thing to do to have those
who can pay, pay! and we use the scarce resources to build more high
quality schools to provide more spaces. It will require that we
identify those who cannot pay through a system which is already in
place – the scholarships secretariat and help them to pay, applying
the funds this way is clearly cheaper (we pay for 50% not 100%) and
more effective (it really helps the poor) and preserves, indeed
increases quality (by preserving the merit based system and building
more high quality schools).

Then the problem of getting access to the high quality schools could
be tackled as follows:
the inability to pay and attend high quality JHS is the reason why
poor students fail and cannot get access (on merit) to high grade
schools. If we want to help the poor and level the playing field for
access to SHS, The scholarship system should identify students going
into JHS and help them pay for high quality JHS, this way they get to
pass well and get admission to god SHS.

Again this is better than spending the money to pay for SHS for people
who fail or get bad tuition in JHS, regardless of how free SHS is it
cannot solve the problem of illiteracy and weaknesses in basic
numeracy and problem solving!, if a student cant read (as was reported
recently in the northern region where all school is free) there is
little SHS can do for that person!, indeed we are better spending the
money to ensure that JHS is successful, before we can purport to pay
for SHS, Free education at SHS doesn’t solve the real problem.

It is easy to conclude after all our work that:

WHAT WE REALLY WANT IS HIGH QUALITY EDUCATION WHICH IS ACCESSIBLE TO
ALL GHANAIANS REGARDLESS OF THEIR ECONOMIC STATUS!!
THIS MAY NOT BE DELIVERED BY FREE EDUCATION!!
INDEED THE REVERSE MAY HAPPEN IF WE IMPLEMENT THIS FREE IDEA!

The big challenge is having a top class (JHS and SHS) school in each
region, accessible to everyone by merit regardless of their social or
economic status, this can be done with this money earmarked for free
education.

PROPOSALS :
· Why not reconfigure the entire government scholarship scheme to
reflect our national education needs. It is too opaque and there are
suspicions of serious corruption and moral turpitude affecting the
scheme, it need ‘sunshine’ the best disinfectant. if we are prepared
to have free education at SHS, we must be prepared to deal with one
institution!

· Why not use the money to build one high quality schools in each
region, ($50m will build a SHS with all the facilities of Mfantsipim),
so we can have 10 over 4 years at a cost less than the bill for FREE
SHS.

· Why not provide access to these schools for everyone regardless of
economic statusU

IF WE ARE GOING AHEAD WITH FREE SHS AS ANNOUNCED, we need the policy
makers and politicians to tell us the following:

HOW DO WE
1. Guard against the threat of a reduction in quality over time

2. Prevent or manage The huge growth in demand for secondary education
especially boarding schools (which is a good thing).

3. Manage the administrative system needed to manage this scheme into
the future and prevent serious corruption and mismanagement. (which is
the real problem and would not be dealt with by just making SHS free)

Conclusion
We do not have infinite resources, even if we did, we should not do
things which clearly will waste money and not achieve their goals,
even if they are politically attractive. We as civil society have a
responsibility to go behind and bring up the real issues, so together
we can find a way to bring what we all want to fruition. This includes
revealing what will not.
It is true that we can find the money, but if we have money, it
doesn’t mean we should apply it anyhow, no waste is justifiable!

Kofi Bentil.

The National Democratic Congress (NDC) is scheduled to outdoor its manifesto for the December 2012 elections on Thursday, October 04, 2012.

A statement from the John Mahama 2012 Campaign Office and signed by Coordinator, Elvis Afriyie Ankrah, said the launch will take place in its stronghold of Ho, the Volta Regional capital.

Details of the launch programme will be announced later, the statement noted.

The ruling party launched its campaign in Kumasi, the fortress of the main opposition New Patriotic Party (NPP) in September, after congress voted overwhelmingly for President John Dramani Mahama to be the party’s flagbearer.

Mr.Ibrahim Mahama,CEO of Engineers and Planners

President John Mahama’s younger brother, Ibrahim Mahama, has denied allegations that his firm contributed to the huge debts at Merchant Bank.
Engineers and Planners, a company owned by President John Mahama’s younger brother, Ibrahim Mahama, has denied allegations that it contributed to the huge debts at Merchant Bank.

The New Patriotic Party (NPP) on Tuesday alleged that the failure of the company to pay its over GHC 50 million loan caused the bank to struggle until a South African bank, FirstRand, acquired majority stake.

But a statement issued by Engineers and Planners indicated that some technicalities caused the repayment of the loan to drag insisting there is a payment plan the company is following.

Here is the full statement
Engineers & Planners is the largest indigenous (Ghanaian) contract mining company. It was established (set up) in 1997, and employs over 1,500 Ghanaians.

It currently operates in Ghana and Liberia and hopes to begin operations in Congo soon.

Generally, due to high capital expenditure in the mining industry, most of the mining companies and their contractors obtain financing from both local and international banks, thus creating fees and income for the
banks.

It is a well-known business strategy in the mining industry to borrow on a long-term basis.

Engineers & Planners contracted financing from two local banks during the previous NPP administration as a five-year term loan.

Subsequently, for some unknown reason, the banks in 2007 suddenly converted the financing into a three-year term loan. Naturally this created debt repayment difficulties for Engineers & Planners.

Under the previous and current administration, arrangements have been made to refinance the loan through a multilateral funding agency.

Engineers & Planners is mindful of its confidentiality obligations to third parties regarding the steps that are being taken to re-finance the debt, and therefore is unable to reveal the details of the funding, save to say that it has been approved after due diligence, which proves that Engineers & Planners is a strong and viable company which has robust cash flows to support a well structured financing.

The Finance documents have been signed, stamp duty and other fees in excess of GHs 2 million have been paid on all documents and collateral registered here in Ghana.

Engineers & Planners remains fully committed to the repayment of the loan, and is hopeful that the funds towards its settlement will be disbursed soon.”

Signed
Sulemana Ahmed Amidu (Chief Finance Officer)
Meanwhile, a minority shareholder at Merchant Bank, the Social Security and National Insurance Trust (SSNIT) has told Citi News, the total debt at the bank is expected to be collected in three years.

The Director General of SSNIT, Dr. Frank Odoom said: “We needed to do a structure that will make the bank go on, move on while we look at the math. So it’s not that we took the math and threw it aside. I believe that three years from now, we can have a conversation here and I’d tell you the success rate in collecting the bad debt.”

He gave the assurance saying, “I will put about 85 percent probability on it that it will be collected.”

Abdul Malik Kweku Baako, Editor-In-Chief of the New Crusading Guide newspaper has chastised the New Patriotic Party (NPP) for failing to provide any evidential resources while seeking to drag the name of President John Dramani Mahama into the debt incurred by Ibrahim Mahama, younger brother of the president who contracted a loan from Merchant Bank.

 

Deputy Communications Director of the NPP, Yaw Buabeng Asamoah, at a press conference on Tuesday, on behalf, alleged that the Social Security and National Insurance Trust (SSNIT), has been forced by President Mahama to use funds of suffering Ghanaian workers to retire a GH¢57.2 million debt owed Merchant Bank by Ibrahim Mahama.

 

Mr Buabeng Asamoah explained that SSNIT, which held a 98% stake in struggling Merchant Bank, in August this year, sold 75% of its stake to South African Bank, First Rand. At the time of the sale, Merchant Bank was reeling under some GH¢330 million debt, with the President’s brother being the largest debtor, contributing 19.2% of Merchant Bank’s total indebtedness.

 

But speaking to the issue on Peace FM’s morning show “Kokrokoo”, the seasoned journalist stated that the NPPs press conference was simply an attempt to subject President Mahama to public ridicule, by associating him to the transaction.

 

He insisted that it was inappropriate for the NPP to associate the president to a business which was solely transacted by his brother

 

“I don’t see the basis for which the President should be dragged into this especially when the [individuals involved] are grownups… This is inappropriate; this aspect of the statement and I am being charitable. It’s inappropriate and it looks like it is an attempt to drag in the President into his brother’s business… I am not too sure that this is a reflection of what Nana Akufo Addo would want to be said in the name of his party and campaign and I even believe that they (Merchant Bank/Ibrahim) have not been properly or well researched… I’m not sure the Bank of Ghana has given the go-ahead…,” Kweku Baako said.

 

It would be recalled in 2005, when John Kufuor, son of then President J.A. Kufuor put together a consortium of banks led by Prudential Bank to finance a Hotel project, (African Regent Hotel), Kweku Baako and some journalists were accused of being spin-doctors for jumping to the defense of the young man.

 

 

Christened “Hotel Kufuor” by Ghanaians, because of the alleged involvement of the first family in its purchase with the suspicion that then President Kufuor was the real owner of the hotel, the facility brought about a political slugfest between the NPP and the opposition NDC.

 

But for Mr Baako, if he saw nothing wrong with Chief Kufuor establishing a company – the Airport West Hospitality Company Limited (AWHCL) – to acquire a hotel, then equally the NPP’s assertions at the press conference should be treated with contempt until the party makes available substantial evidence to back its claim.

 

“… For me consistency is my watch word here. It is important to note that when Ibrahim Mahama secured the loan from the bank, his brother (President Mahama) was in opposition at the time, so it will not be fair to link him to his brother’s predicaments…What was bad yesterday is also wrong today. I jumped to the defense of Chief Kufuor during the hotel Kufuor saga and I will do same today, especially when there is nothing of evidential value,” Kweku Baako said.

 

The newspaper editor however pointed that the NPP can saddle President Mahama with the failed STX Korea Housing Project.

Source:Peacefmonline

It is now confirmed that former First Lady Nana Konadu Agyeman-Rawlings is behind the formation of the National Democratic Party (NDP), a breakaway party from the ruling National Democratic Congress (NDC).

The core supporters of the NDP are disgruntled members of the NDC.

The NDP has also rubbished media reports that NDC founder, former President Jerry John Rawlings, would be campaigning for the ruling party, saying that he was in the boat of the breakaway party.

Even though Nana Konadu continues to remain tight-lipped over whether or not she was behind the new party, initial speculations had linked her as the brain behind the NDP without any concrete proof.

However, Mrs. Rawlings has been captured on an audio recording conscientising NDP faithful, telling them why they needed to join the new party to chart a new course.

The former First Lady is believed to have made these and other comments during a meeting with NDP sympathisers at the SSNIT Hall in Kumasi when she visited the Ashanti Region somewhere last week.

The NDP presidential hopeful is expected to begin her Brong Ahafo regional tour soon as part of the party’s attempt at winning more souls.

 

Source:Daily Guide

The Forum for Setting the Record Straight says the opposition New Patriotic Party (NPP) has proven by its track record that it is not a government that can be trusted and has therefore called on Ghanaians to reject the party in the December polls.

The group made up of some deputy ministers and members of the party’s communication team held a press conference in Accra, in what appears to be a reaction to a similar press conference by the NPP on Tuesday, to compare the records of the current administration and the erstwhile Kufuor administration.

Mr Fifi Kwettey, deputy Minister of Finance and Economic Planning, who addressed the conference said, the NPP has no infrastructure to show for the $750 million International Eurobond loan that was procured in 1997 as against the NDC government’s commitment to increasing the infrastructural deficit of the nation.

Mr. Kwettey said “Talk is very cheap and if wishes were horses the NPP will have a very jolly ride at the expense of the good people of Ghana… They should stop pretending to be asleep and appreciate the work being done by the NDC.”

He slammed the NPP for failing to add a megawatt of power to the energy generation system of the country in the eight years it was in government, stating that the NDC managed to add 376 megawatts to the national grid and increased the power supply to households by 18%.

He said the NDC was forced to raise money to start the gang of four major roads that were initiated by the NPP even though the then government failed to make any financial allocation for the projects.

Mr. Kwettey said unlike the NPP, the NDC government has already started the $850 million dollar project that is expected to be completed on time to create more jobs and to increase the power generation of the country. He added that the government is about to commence work on the Accra Plains Irrigation Project, the Western and Eastern Corridor projects as well as the landing sites for the fishing industries.

Citing promises that were not fulfilled by the NPP, Mr Kwettey said the promises of modernising slums, modernizing the railway system, reviving the local rice industry and providing community health nurses for all hamlets across the country are but a few of such promises that became a façade.

“As opposed to NPP which cannot point to any infrastructure they used the 750 million dollars for, the NDC can point to the 850m dollar Gas infrastructure that is on course as we speak- a project that is set to truly transform Ghana’s energy situation and usher in an integrated Aluminum project that will make full use of our bauxite, salt and gas deposits.”

He said “any political party can make a promise. Every candidate can mount a platform and make promise after promise. What is important is not the promise but the credibility and the track record of the party and the candidate making that promise.”

He said due to the bad debts left behind by the NPP’s poor management, the NDC government had to retire the one billion Ghana cedis Tema Oil Refinery debt that nearly collapsed the Ghana Commercial Bank.

He said the NPP government collapsed the rice, fishing and cotton industries in the country but the NDC government has managed to procure 140 harvesters for the rice sector and has reduced rice imports by 30 percent in last 3 and half years.

He said the government has managed the depcreciating cedi in a manner that has seen the cedi stabilize against the dollar in recent days. Mr. Fifi Kwettey revealed that faced by a lesser evil in 2008, the NPP had to sell of Ghana Telecom in order save the economy from imminent collapse.

He said the NPP led by Dr, Bawumia chased after “phantom” IFC and CNTCI loans and that if the NPP knew what they are about, such loans will not be pursued, stating “Dr. Bawumia knows not the difference between a genuine and a 419 loan.”

Mr. Fifi Kwettey accused Nana Akufo-Addo, flagbearer of the NPP of scheming to destroy the Ghana National Petroleum Company with his free SHS policy which is not possible to implement in the current setting.

He said the NPP led by Nana Akufo-Addo, is deceiving the children of Ghana with this promise and that the forum for setting the records straight will bring out the unrealistic aspects of the policy for all to see.

Ghana recorded a growth rate of 7.1 percent this year falling short of the government’s projected target of 9.4 percent.

 

According to provisional estimates released by the Ghana Statistical Service, the size of the economy currently stands at 41 billion dollars while per capita income is 1,584 dollars, keeping the nation still in the lower middle income bracket.

 

The service sector dislodged industry to record the highest growth rate of 8.8 percent.

 

Industry and agriculture recorded 7.0 and 2.6 percent.

 

Though the performance of agriculture was better than last year, its contribution to the economy continues to decline with its share reducing from 25.6 percent of GDP to 23.1 percent of GDP.

 

The acting Government Statistician Dr. Philomena Nyarko stated that the services sector remains the largest contributor to the GDP accounting for 49.3 percent.