Business in Ghana

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Archive for December 14th, 2014

IMF Might Need Some Answers. GNPC, GNGC, ENI and Due Dilligence

Posted by Business in Ghana on December 14, 2014

By Sydney Casely-Hayford

The news that Ghana’s Parliament approved the deal on the oil and gas project with ENI of Italy could raise important questions related to the Country’s program with the IMF.

There are implications for the budget, even as the price of crude continues to dip below the numbers used to estimate oil revenues to fund the Budget and other sectors, especially social safety nets might be compromised.

Whether subsuming GNGC into GNPC will affect the share of carried and participated interest of GNPC in its contract with ENI and whether there will be an impact on public and publicly guaranteed external debt is a big question.

Parliament already did the unthinkable and passed the $8billion contract with ENI speedily as it does when under pressure from Government to shore immediate cash demands.

The IMF program is struggling to finality, principally on a few key issues. One, the total value of Government debt is still open to debate and whether the composite debt must include liabilities of certain key parastatals such as VRA, GNPC and TOR must still be of concern. As also the debt of key Municipalities and Metropolitan Assemblies.

Two, the projected revenues are a problem with periodic budgets consistently below target and the payroll envelope is still threatening to engulf revenues.

As Parliament ducked the minority call for a stay in loan approval pending the $700million facility in court re: GNPC, the decision begged the question whether anyone had taken a closer look at ENI on the world scope. Read the rest of this entry »

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Because I Want To Believe. Critical News, 14th December 2014

Posted by Business in Ghana on December 14, 2014

Sydney Casely-Hayford, sydney@bizghana.com

The Auditor General Peter Quartey finally gave OccupyGhana his reply to our questions regarding his authority to disallow and/or surcharge public expenditure in the country as and when he detects it. Unfortunately, or maybe fortunately, we disagree with his minimalist interpretation of his authority and we intend a formal response to clarify our understanding of his duties to Ghanaians.

In the likely event that we do not find common ground, we will see him before the Supreme Court Justices.

But this week our President announced at the National Anti Corruption Action Plan (NACAP) meeting, all the great things we will be doing to dribble out the corruption bug. He also mentioned specifically some 300 people he had on remand on various corruption and related matters.

You see all that he has achieved? So we all jumped into the sortie. Who are these seasoned criminals amongst us? Can they be seen? Please publish the list so we make sure our names are not included. But alas, it has not happened. I would have thought if there was a list, getting it to the media would be a matter of “halt the press, the Criminal names are coming oooo!!”

Same way we have no clue about all the super contracts Government is undertaking despite calls for all the projects to be identified (as a matter of transparency) with amounts allocated and stages of completion, so also this list will NEVER be seen until Green Book time in 2016. Read the rest of this entry »

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