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Private Companies Walk Free

Private Companies Walk Free Hon. O.B Amoah

…After failing to pay State $21M, Ghc4.4M, The Divestiture Implementation Committee (DIC) has failed to retrieve an amount of US$21.3 million and GHc4.4 million from the sale of five state owned enterprises to private individuals and institutional investors. The assets were sold between 2009 and 2013 at a total cost of US$30.7 million and GH6 million 

but less than 30 per cent has so far been paid to the government. The companies are Tema Printing Press, Ghana Consolidated Diamond Company, Subri 

Industrial Plantation Limited, GIHOC Footwear Company Limited, and GAMA Film Company Limited. The Minister of Finance, Seth Terkper, announced this Wednesday when he appeared before Parliament to respond to a question filed by Mr. Osei Bonsu Amoah, a New Patriotic Member (NPP) for Akuapim South.

Mr. Amoah asked the Finance Minister to furnish the House with the number of state owned enterprises divested since 2009 and the details of the divestiture.

Mr. Tekper explained that the Tema Printing Press was divested for a purchase price of US$3 million, out of which US$1.1 million had so far been paid, leaving a balance of US$1.9 million.

“A total of US$3.2 million out of a purchase price of US$17 million for the Ghana Consolidated Diamond Company has been paid”. “Mr. Speaker, Subri Industrial Planation Ltd was sold for US$10 million with US$5 million paid. GIHOC Footwear Company Ltd was divested to a joint venture for US$700,000, out of which US$70,000 has been paid, leaving a balance of US$630,000,” he said. On the divestiture of the GAMA Film Company Limited, he said the company was sold for GH6 

million with GH1.6 million paid, with a balance of GH4.4 million. He said the board of the DIC, which he chair had directed the secretariat to present a recovery plan for all outstanding amounts per Attorney General’s advice who is also a member. The Akuapim South Legislature also noted that, according to the Auditor General’s report on the years under review, even what was paid could not be found in the Consolidated Fund. Mr. Terkper also answered questions on whether the government made allocations in the 2014 budget to subsidise petroleum products and indicated that the policy direction on petroleum subsidies in the budget was to adopt the automatic petroleum price adjustment formula.

He said the government planned to adjust petroleum prices at regular intervals to minimize the adverse impact that the subsidies would have on the budget, business operations and consumer activities. “In the original 2014 budget, an amount of GH50 million was estimated to be spent on petroleum subsides. As a result of the delay in the adjustment of petroleum prices in the early months of 2014, subsidies accumulated and the supplementary budget made provision for an additional amount of GH277.6 million to cater for the subsidies,” he said.

Mr. Terkper noted that a total allocation of GH327.6 million was made in the 2014 budget for petroleum subsidies.

Source: Sammy Agyei

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