A look at some of the major business headlines out of Ghana in 2015
So much happened during the year 2015. We bring you summaries of some of the major business news of the year.
ITLOS takes middle ground in maritime dispute with Côte d’Ivoire
The International Tribunal for the Law of the Sea (ITLOS) took a middle ground in the maritime dispute between Ghana and Côte d’Ivoire, ruling provisionally that Ghana could continue exploration and production in the Tweneboa, Enyera and Ntomme (TEN) oil fields, but without new drilling.
The tribunal also ordered Ghana to protect the marine environment and prevent all information that is not already public, from being used to the detriment of Côte d’Ivoire.
Côte d’Ivoire was praying the court to halt all exploration and production in the disputed region, while Ghana was seeking a dismissal of her western neighbour’s request.
ADB staff protest sale of head office
Much to the dismay and displeasure of staff of the Agricultural Development Bank (adb) who protested against the bank’s governing board, the bank sold its head office on Independence Avenue in Accra for $10 million, opting for space at the new Accra Financial Centre, worth GH₵1monthly.
The Bank defended its actions saying its relocation to the Accra Financial Centre would be cost-effective by bringing all elements of its head office, some of which were found in other buildings across the city, under one roof.
ADB initial public offer launch
The Agricultural Development Bank (adb) announced an initial public offer (IPO) to enable it list on the Ghana Stock Exchange.
The IPO was cancelled several times after the bank faced law suits
Dr Mark Assibey-Yeboah, MP for New Juaben South, filed a suit against the IPO, looking to compel adb to seek parliamentary approval first and the Union of Industry, Commerce and Finance (UNICOF) also filed a suit after Dr Assibey-Yeboah had withdrawn his.
World Bank approves $700 million guarantee for Sankofa gas project
The Board of Directors of the World Bank approved $700 million in guarantees for Ghana’s Sankofa gas project: a guarantee of $500 million covering the risks of non-payment for gas bought by GNPC, and a $200 million private sector guarantee for debt defaults by GNPC and the Government of Ghana.
Randgold abandons joint venture with Anglogold
Randgold Resources ditched a joint venture with Anglogold Ashanti to redevelop the Obuasi mine which is currently in limited operations phase, saying that the joint venture did not meet its investment criteria. Both parties were preparing a plan which was to be ready by February, subject to other conditions.
DKM Diamond Microfinance
Bank of Ghana sanctioned the microfinance institution for violating the Banking Act of 2004 (Act 673). Among other things, the microfinance institution did not have enough liquid assets to meet interest payments to customers and could not explain its 330 per cent per annum interest on savings. Locked down by a 90-day moratorium and unable to pay accrued interests and investments to its customers, DKM Diamond Microfinance was besieged by hundreds of customers who wanted their money. Some reportedly vandalized property and took some staff “hostage”.
Captain Prince Kofi Amoabeng (Rtd) retires from UT Bank
The CEO of UT Bank and co-founder of the UT Group of companies, retired his post as Chief Executive Officer of UT Bank. The former military officer said it was time to take a break and play some more golf.
GNPC seeks $700 million loan from Trafigura
The Ghana National Petroleum Corporation (GNPC) sought a loan from Dutch commodities trader, Trafigura. The loan deal was criticized for not having Parliamentary approval.
Subsequently, GNPC reviewed the loan amount downwards to around $350 million or $400 million.
Ghana government signs mysterious power deal
Power Minister Kwabena Donkor signed a build own operate and transfer (BOOT) power deal with Africa Middle East Resources Investment (Ameri Group), subsequently shown to have been approved by Ghana’s parliament within 6 minutes of deliberation. Investigations by a Norwegian newspaper Verdens Gang revealed Ghana was paying $510 million when the cost of the ten turbines involved – the chief component – was $220 million. The newspaper also claimed Ameri’s witness to the signing of the contract was a wanted fraudster and the company was unheard of by businesses in the Emgate Building in Dubai where Ameri Group claimed to be based.
Ghana spends $1 million to spray and rebrand buses
The Ghana government spent a whopping GH¢3.6 million to spray and rebrand 116 buses it bought for the Metro Mass Transit. The amount was equivalent to $1 million. The buses were bought on loan.
The Chief of Staff at the Presidency, following public outcry, instructed the Attorney General to review the contract. After the review, a report was submitted which demanded that the company that did the job, Smartty’s should refund GH¢1.9 million to the state.
By Emmanuel K. Dogbevi & Emmanuel Odonkor