Debates of 2 Nov 2022

Hon Members, let me invite you to
the item numbered 4 on the Order
Paper — Correction of Votes and Proceedings and the Official Report.
Page 1…7 —

Hon Deputy Majority Whip.

Mr Speaker,
on page 7, the items numbered 8 and
10, the Hon Members of Parliament
for Hohoe and Nsawam-Adoagyiri
sought permission and the forms
were presented to the Rt Hon
Speaker, but because the Rt Hon
Speaker was unavoidably absent, I
think it has not been captured —

Hon Member, can you kindly repeat
what you said?

Mr Speaker,
on page 7, the item numbered 8, the
Hon Member for Hohoe and then on
the same page, the item numbered 10,
the Hon Majority Chief Whip. They
were absent with permission, and the
forms were filled and signed by me
and presented to the Rt Hon Speaker,
so I do not know why—

Hon Member, it did not come to me.
Incidentally, I am responsible for
that.

Mr Speaker,
respectfully, it was until yesterday
that we were informed that you are in
charge. It was sent to the Rt Hon
Speaker's Office on Friday.

All
right, Table Office should kindly take note
of that.

Hon Member for North Tongu?

Mr
Speaker, I seek your guidance on this
matter. I would have thought that
your Office must approve it, because
if we say that once a form is filled, it
should automatically reflect, I am not
sure that it would be helpful.
Hon Members should complete
the process; we fill the form, it goes
through Leadership and the Rt Hon
Speaker must grant the approval.
This is because it is not automatic.
The Rt Hon Speaker may say that he
is not approving the trip, so for my
Hon Colleague who is the Deputy
Majority Whip to say that because he
submitted the form, then it should
automatically reflect in the Votes and
Proceedings that the Hon Members
are absent with permission. What if
the Rt Hon Speaker's Office finally work on the forms and declines one
or two of them, or does not approve
at all? So, I am not too sure that it is
an automatic approval and so, it
should reflect in the Votes and
Proceedings when the Hon Deputy
Majority Whip admits that at the time
that he sent the forms, the Rt Hon
Speaker was not available and it has
not been worked on?
So, I think that the Table Office
has done the right thing, at least for
yesterday, it was not approved.
Probably, from today or tomorrow, if
the Acting Speaker approves it, then
it would reflect accordingly.

Mr Speaker, I
think my Hon Colleague did not get
me right. Mr Frank Annoh-Dompreh
is at the Pan-African Parliament with
the Hon First Deputy Speaker. So,
my argument is that, it was just
yesterday that we were informed by
the Clerks-at-the-Table of the
unavoidable absence of the Rt Hon
Speaker and that the Hon Second
Deputy Speaker would be taking
charge. So, the forms were not sent to
the Hon Second Deputy Speaker, but
rather sent to the Rt Hon Speaker.
These are parliamentary travels that
were approved since they are at-the Pan-
African Parliament and I do not think it
should be a problem. I was just drawing
the attention of Mr Speaker, so that the
Table Office will take note.

Hon Members, I believe Leadership
might look into this and see how to
address this issue. I appreciate the
concerns raised by the Hon Member
for North Tongu.

Hon Member for Yapei/Kusawgu?

Mr
Speaker, this is a bit different, but I
know that as the Acting Speaker, you
have the full powers of the Rt Hon
Speaker and I am very happy about
that.
Mr Speaker, we may need your
direction on this, especially with
conferences. I do know that before
any Hon Member attends a
conference, the Hon Member would
have to apply to the Rt Hon Speaker
and so, when it is approved by the Rt
Hon Speaker that person(s) A, B, C,
and D can attend the conference. Do
they need to then apply individually
again to the Rt Hon Speaker for
permission to travel? I thought that
once the Rt Hon Speaker approves
that an Hon Member can embark on
that trip, it is implied.
Mr Speaker, you may want to
guide us on that but if you would
want Leadership to take it, that is
fine. We do not want to have a
duplicity of what we are doing.
Mr Speaker, thank you very much.

Yes, Hon Member?

Mr
Speaker, I have some issues raised by
my Hon Colleague that when the
approval is given by the Rt Hon
Speaker, automatically, the Hon
Member is deemed to have travelled
or to have attended the programme.

Mr Speaker, approval can be given

alright, but some Hon Members may

decide not to attend the programme.

So, when the Hon Member decides to

attend the programme or workshop,

that Hon Member must submit the

form indicating that he is travelling,

and even at this austerity period —

[Laughter] — that is my concern. The

Government just indicated that they

were going to cut back on foreign

travels, and at this period, Hon

Members of Parliament in

Leadership —

Hon Members, as I said earlier,
Leadership would have to look into
these matters. What Hon John Abu
Jinapor has also raised would be put
on record and we would see how best
we can address them. So, we would
move on to page 8.
Mr Rockson-Nelson E. K.
Dafeamekpor — rose —

Yes, Hon Member for South Dayi?

Mr Speaker, I
was in the House yesterday, but I
have been captured as having been
absent; that is the item numbered 25
on page 8. To be honest, I forgot to
sign in, but I was in the House.

Clerks-at-the-Table, take note.
However, I have repeatedly asked
Hon Members to please sign the
register. Please, when you come, try
to sign the register.
So, we would move to page 9.
Page 9…12 —
Hon Members, in the absence of
any further corrections, the Votes and
Proceedings of Tuesday, 1st November,
2022, as corrected, are hereby adopted
as the true record of proceedings.
Leadership, do we move to
Statements or we would do
something else before coming to
that?

Mr Speaker,
with your leave, if we could vary the
order of Business and move on to the
item numbered 6 — Commencement of Public Business, so that we can
take Motions numbered 6 and 7.

Very well.
So, Hon Members, allow me to
respectfully invite you to page 2, the
item listed 6 on today's Order Paper that is the Commencement of Public
Business — Motions. If the Chairman of the Committee is not
here, the Vice Chairman may take the
Motion. So, Hon Member for Shama,
you may take the Motion.
— [Pause] —
Yes, Hon Member for Shama, let
us hear you.

Yes, hold on Hon Member for Shama.
Yes, Hon Minority Leader?

Mr Speaker, this is just to help the Hon Vice Chairman. He should move the Motion numbered 8 as it appears on page 4, then he can proceed to present the Committee's Report, but we want to hear the Motion being moved, and not substituted with his own words. The Motion as it is and as advertised on the Order Paper.
Thank you, Mr Speaker.

Mr Speaker, I beg to
move that this honourable House
adopts the Report of the Committee
on Employment, Social Welfare and
State Enterprise on the Audited
Financial Statement of the Ghana
National Petroleum Corporation
(GNPC) for the 2019 and 2020
financial years.
Mr Speaker, in so doing, I present
the Report of the Committee. The
Committee on Employment, Social
Welfare and State Enterprises having
been authorised pursuant to Orders
184 and 192(2) of the Standing
Orders of Parliament to ‘review and study on a continuing basis the
operation of State Enterprises with a
view to determining their economy
and efficiency, considered the
performance of the Ghana National
Petroleum Corporation (GNPC) for
the 2019 and 2020 financial years and
presented its Report as follows:
The Committee met on 10th May,
2022 and took evidence from the
representatives of Ghana National
Petroleum Corporation (GNPC).
The Committee is grateful to the
Hon Minister for Public Enterprises,
Mr Joseph Cudjoe, the Director-
General of the State Interest and
Governance Authority (SIGA) and

Report on the Audited Financial Statement of the GNPC for 2019/2020

Officials from SIGA for their attendance and for assisting the Committee in its deliberations.

Reference

The Committee referred to the following documents during its deliberations:

i. The 1992 Constitution of

Ghana;

ii. The Public Financial Management Act, 2016 (Act 921) ;

iii. The Standing Orders of the

Parliament of Ghana;

iv. The 2020 State Ownership Report;

v. Ghana National Petroleum

Corporation (GNPC) Consolidated Financial Statement for the year 31st December, 2019; and

vi. Ghana National Petroleum

Corporation (GNPC) Consolidated Financial Statement for the year 31st December 2020.

Methodology

The Report presents a financial

appraisal of GNPC from 2019-2020

using the financial performance data

presented in the Corporation's Audited Financial Statements. The

objective of the financial

performance of GNPC is in

accordance with article 103 (3) of the

1992 Constitution and Order 184 of

the Standing Orders, which requires

the Committee on Employment,

Social Welfare and State Enterprises

to examine the reports and accounts

of public enterprises and in the

context of their autonomy and

efficiency whether their operations

are being managed in accordance

with sound business principles and

prudent commercial practices.

In exercising this oversight

function, the Committee looked at the

financial health, solvency, the risks

attached to the financial structure,

and the returns generated for the

Ghanaian State as a shareholder.

Background

The Ghana National Petroleum

Corporation (GNPC) is Ghana's National Oil Company established

under GNPCL, 1983, PNDCL 64 (2)

to ‘promote the exploration and orderly and planned development of

the petroleum resources of Ghanan

and to ‘ensure that Ghana obtains the greatest possible benefits from the

Report on the Audited Financial Statement of the GNPC for 2019/2020

development of its petroleum

resources'.

The Corporation's products, currently comprising crude oil and

natural gas, are marketed in both

local and international markets.

The Mission of the organisation is

to lead the sustainable exploration,

development, production and

disposal of the petroleum resources

of Ghana by leveraging the right mix

of domestic and foreign investments

in partnership with the people of

Ghana.

The Vision of GPNC is to be a

leading global oil and gas company

whose operations have a profound

impact on the quality of life of the

people of Ghana.

Mandate

GNPC's mandate under PNDC Law

64 of 1983 (now PNDC Act 64) is to

undertake petroleum exploration,

development, production and disposal.

Among the objectives of the Corporation

are:

• To promote the exploration

and the orderly and planned

development of the petroleum

resources of Ghana;

• To ensure that Ghana obtains

the greatest possible benefits

from the development of its

petroleum resources;

• To obtain the effective transfer to

Ghana of appropriate technology

relating to petroleum operations;

• To ensure the training of

citizens of Ghana and the

development of national

capabilities in all aspects of

petroleum operations; and

• To ensure that petroleum

operations are conducted in

such a manner as to prevent

adverse effects on the

environment, resources and

people of Ghana.

Subsidiaries

The subsidiaries of GNPC are as

follows:

• GNPC Exploration and

Production Co. Ltd -

wholly owned subsidiary.

• Prestea Sankofa Gold

Limited - 90 per cent

Report on the Audited Financial Statement of the GNPC for 2019/2020

ownership by GNPC and

10 pervcent by GoG.

• GNPC Foundation -

wholly owned subsidiary.

• Mole Motel - 60 percent

ownership by GNPC and

40 per cent by Forestry

Commission.

Financial Performance

Revenue and Cost Analysis

The Corporation's major source of

revenue comes from the allocation of

its share of revenue by Parliament

under the Petroleum Revenue

Management Act 2011 (Act 815).

Gas sales represented 69 per cent and

72 per cent of total sales in 2021 and

2020, respectively.

The cost of operations is mainly

driven by direct operating and

administrative costs, with operating

expenses representing an average of

75 per cent of total costs during the

periods 2018-2021. Table 1 below

indicates the movements of revenues

and operating costs over the period.

Table 1: Revenue Trends:

Source 2018 2019 2020

US$ US$ US$

Oil Revenue 400,677,574 349,371,163 198,445,983

Gas Sales 73,278,457 243,524,587 560,091,577

Other Operating Income 585,618 601,375 22,568,370

Total 474,541,649 593,497,125 781,105,930

Source: GNPC Financial Statements of GNPC (2018-2021)

From the above, the Committee

observed that the Corporation

increasingly depends on gas sales

to fund its operations. Sales from

crude oil fell to their lowest in

2020, the year the company

recorded its highest operating

expenses.

Profitability Assessment

Profitability assessment was used

as a measure of the performance of

Management and the Corporation's

Report on the Audited Financial Statement of the GNPC for 2019/2020

performance relative to its

competitors. Basic accounting ratios

were applied using the financial

statements of the Corporation.

The Committee noted that

financial ratios are financial

metrics used to measure and

evaluate the ability of an entity to

generate income (profit) relative

to revenue, balance sheet assets,

operating costs, and shareholders' equity during a specific period of

time. They indicate how well an

entity utilises its assets to generate

profit and shareholder value. The

following ratios were used to

evaluate the profitability of

GNPC.:

a. Return on ordinary shareholders'fund/Return on equity.

b. Return on capital employed

c. Net profit margin.

d. Gross profit margin.

e. Asset turnover.

The results of the computations

indicate that the Corporation's profitability was challenged over the

four-year period. For instance, the

Committee found that gross

operating and net margins declined

significantly from 50.3 per cent,

28.19 per cent and 24 per cent,

respectively, in 2018, to 15.3 per cent

and 4.3 per cent. The year 2020 was

particularly challenging, with

margins going into negative 19 per

cent and 22 per cent in operating and

net margins.

Similar trends were recorded in

Return-to-Equity and Capital

Employed, which declined from 24.4

per cent and 14.63 per cent in 2018 to

just 6.6 respectively. The movements

in ROCE were partly attributable to

changes in long-term funding, such

as long-term borrowings to fund the

acquisition of non-current assets.

The analysis also points to a

significant gap between gross and net

margins, indicating how production

or direct sales costs were controlled

during the period. The results give an

indication of high operating

expenses, mainly driven by gas

production costs. Thus, even though

revenues increased over the period,

gross profits actually declined

significantly from 2018 to 2020.

A summary of relevant ratios is

presented in table 2:

Report on the Audited Financial Statement of the GNPC for 2019/2020

Table 2: Profitability Assessment

Relevant Ratios Computed 2018 2019 2020

Gross Profit Margin (%) 50.3 26.9 0.3

Operating Profit Margin (%) 28.19 10.21 (19.23)

Net Profit Margin (%) 24 6 (22)

Return-on-Equity (%) 24.4 7.4 (44.1)

Return on Capital Employed (%) 14.63 2.79 (16.18)

Source: Computed from Financial Statements of GNPC (2018-2021)

Assessment of short-term solvency

Liquidity assessment is concerned

with the ability of the business to

meet its short-term financial

obligations as they fall due, as well as

short-term emergencies. The

standard assessment ratio deployed

was the Current Ratio, which

compares the company's short-term assets with short-term liabilities. In

cases where the value is more

significant than unity, the common

asset value exceeds the value of

current liabilities.

The assessment indicates that

GNPC's liquidity situation was moderate, with short-term assets

matching its short-term liabilities

one-on-one, indicating that the

company was in an excellent position

to meet short-term obligations.

For example, the Committee noted

that the Current and Acid Test ratios

averaged 1:1 over the reporting

periods with almost no difference,

which shows that GNPC maintains a

very low inventory. Table 5, below

shows the liquidity ratios performed

over the period.

Report on the Audited Financial Statement of the GNPC for 2019/2020

Table 5: Assessment of Liquidity

Relevant Ratios Computed 2018 2019 2020

Current Ratio = Current

Assets/Current Liabilities 1.08 1.10 0.88

Acid Test=Current Assets-

Inventory/ Current Liabilities 1.08 1.10 0.88

Source: Computed from Financial Statements of GNPC. (2018-2021)

Assessment of Efficiency in the

use of Assets

These ratios may be used to assess

the efficiency with which particular

resources have been used within the

business for the period under review.

It measures management's ability to generate sales from the capital

employed or current assets. Higher

results are generally an indication of

efficiency.

A decline or low performance is

generally a result of poor Asset

management, inefficient utilisation of

Assets and poor pricing strategy. For

GNPC., the accounting ratios

computed were inventory turnover,

asset turnover, Accounts Receivables

and Payable days, and the results are

shown in Table 6 below:

Table 6: Efficiency Assessment

Relevant Ratios Computed 2018 2019 2020

Inventory Turnover (Times p a) 882 1,707 2,804

Fixed Asset Turnover (Times p a) 0.6 0.4 0.8

Accounts Receivables Recovery Days 108 160 357

Accounts Payables Days 344 482 447

Source: Computed from Financial Statements of GNPC. (2018-2021)

Report on the Audited Financial Statement of the GNPC for 2019/2020

From the table above, GNPC

recorded a high inventory turnover

rate due to the Corporation's low inventory over the period in relation

to the cost of sales. The Corporation

also maintained a good working

capital management strategy.

This strategy means that the

Corporation is effectively using free

finance to fund its working capital

but may also indicate that the

Corporation is unable to pay more

quickly because of liquidity

problems. If the credit period is too

long, this could pose some risk to the

Corporation because it may develop a

poor reputation as a slow payer and

may not be able to find new suppliers,

and existing suppliers may decide to

discontinue supplies.

Long-term Solvency Assessment

Solvency assessment is concerned

with representing the proportion of

capital employed, which is accounted

for by long-term fixed-interest debt.

Alternatively, the gearing structure of

an entity refers to the amount of

borrowing compared with

shareholders' funds.

This indicates the degree of risk

attached to an entity and the

sensitivity of earnings and dividends

to changes in profitability and

activity level. The relevant

accounting ratios were computed to

assess the level of solvency of GNPC,

including Capital Gearing, Debt-to-

Equity and Interest Cover and the

results are shown in Table 7:

Table 7: Long-Term Solvency

Relevant Ratios Computed 2018 2019 2020

Capital Gearing Ratio 0.35 0.59 0.59

Debt-to-Equity Ratio 0.58 1.55 1.60

Interest Cover 5.31 1.58 -9.33

Source: Computed from Financial Statements of GNPC (2018-2021)

The results indicate that the

Capital structure is highly geared,

with the capital gearing ratio moving

from 35 per cent in 2018 to 59 per

cent in 2020. The rate of debt

Report on the Audited Financial Statement of the GNPC for 2019/2020

accumulation by the company also

escalated, with the amount of debt

moving in the capital structure moving

from 58 per cent in 2018 to 160 per

cent in 2020. For example, while total

equity and reserves amounted to

US$397 million, the medium-term

loan was US$779 million.

The Interest Cover, which

measures the ability of the company to

generate enough income to cover its

interest obligation, declined from 5.31

times in 2018 to negative 9.33 times in

2020. However, it is important to note

that in approving the Corporation's

Annual Revenue allocation per the

PRMA and the Corporation's Work

Programme, Parliament must

consider the Corporation's current

gearing ratio.

Going Concern Assessment

Going Concern assessment is conducted to determine the overall financial risk of the entity and the prospects or otherwise of survival in the foreseeable future. Several indicators and univariate ratios can be used to measure the soundness of firms as reflected in their balance sheets (leverage, profitability, liquidity ratio, etc.). However, each indicator computed above alone cannot measure a firm's overall financial risk or financial distress level.

Altman Multivariate Discriminant Analysis model uses a score of 1.8 as the ‘Pass Mark'. Performance below the mark signals going concern problems, whilst performance above the mark indicates high prospects of survival. The model was used to analyse the financial statements of GNPC over the 2018-2021 period; the results are presented in Table 8.

Table 8: Going Concern Assessment

Multivariate Discriminant Analysis(MDA.) 2018 2019 2020

X1=Working Capital/Total Assets X 1.2 0.02 0.03 (0.07)

X2=Retained Earnings/Total Assets X 1.4 0.01 0.02 0.06

X3=EBIT/Total Assets X 3.3 0.37 0.06 (0.28)

X4=Market Value of Equity/Total Liabilities X 0.6 0.53 0.22 0.14

X5=Sales/Total Assets X 1.0 0.48 0.31 0.39

Very well, Hon Members, the Motion
has been moved, so let me now invite
the Hon Ranking Member to second
the Motion.
Ranking Member of the
Committee (Dr Kwabena Donkor):
Mr Speaker, I beg to second the
Motion ably moved by the Hon Vice
Chairman of the Committee on behalf
of the Committee, but in seconding
the Motion, I would want to draw the
attention of the House to the fact that

Report on the Audited Financial Statement of the GNPC for 2019/2020

the GNPC is one of the very strategic

assets of the Ghanaian nation-state.

Mr Speaker, the GNPC is one of

those organisations whose impact on

our body politic goes beyond just the

commercials. It is the agency of state

that we have elected to represent the

Ghanaian interest in the oil and gas

sector and, therefore, issues

pertaining to it is of critical national

importance. It is in this light that I

want to draw the attention of the

House to the poor state of GNPC and

if there is a word worse than poor, I

would have used it.

Mr Speaker, page 6, paragraph 31

of your Committee's Report states

that the gearing ratio of GNPC rose

from 35 per cent in 2018 to 59 per

cent in 2020, this is extremely

important in finance - which simply

means that GNPC is highly indebted

to other partners. The gearing ratio is

the relationship between one's asset

base and loan portfolio or debt and,

therefore, when one is heavily

indebted, such as the GNPC, it calls

for serious introspection.

Mr Speaker, we have allowed the

GNPC to veer from its core operations

into areas which are better performed by

other organisations. Yes, I am the first to

admit that GNPC needs a social licence to

operate and the social licence will include

Corporate Social Responsibility (CSR)

and that is critical in the extractive

industry. One needs the buy-in, especially

of the host communities, to operate.

However, that should not supersede one's

core mission of returning good dividends

to the nation-state for the equity held on

behalf of Ghana.

Mr Speaker, consistently, GNPC

has had to borrow; when we borrow

for capital expenditure, cash cows or

expand production, there is then a

belief that the proceeds from the

production will service the loan, but

GNPC goes beyond that. It borrows

even for administrative expenses and,

again, GNPC has gone ahead to form

subsidiary companies without the

permission of this House and siphons

off revenue which should go into the

petroleum funds into this offshore

company, and by-passing the

supervision of this House.

Mr Speaker, it is high time this

House took a second look at the

Report on the Audited Financial Statement of the GNPC for 2019/2020

operations of the GNPC. Our

Committee's remit is just on the

financials and the financials just do

not speak well of the GNPC. The

future is bleak for GNPC and,

therefore, for the Ghana if we do not

insist that GNPC stays on straight

and narrow path on its operations. It

is important — if one looks at

paragraph 40, the expenditure of the

GNPC, the Committee observed that

the GNPC engages in activities

outside its core mandate, which either

do not produce commercial value for

the organisation or compromise

efficiency and utilisation of GNPC's

revenue.

Mr Speaker, we would urge that

on a purely commercial analysis,

without injection of new funds, the

GNPC is on the brink of bankruptcy

and, therefore, in supporting the

Motion, I would want to call the

attention of this House for the need to

bring the GNPC, even if it is the

Committee of the Whole, to this

House for a more critical scrutiny.

Mr Speaker, with these few words,

I second the Motion.

Question proposed.

Yes, let me now come to the Hon
Chairman of the Mines and Energy
Committee, the Hon Member for
Abuakwa South.
Mr Samuel Atta Akyea (NPP —
Abuakwa South): Mr Speaker, I am
grateful to you for the opportunity to
make a few comments regarding this
all-important Report at the behest of
the Committee on Employment,
Social Welfare and State Enterprises.
Mr Speaker, as my Hon
Colleague, Dr Kwabena Donkor, has
rightly said, the GNPC can be the
cash cow of our economy if it should
have proper alignment and I agree to
it. One challenge of the GNPC, which
we should not ignore, is the hard fact
that moneys due the GNPC can be
taken from them by the Hon Minister
for Finance for other purposes. There
is this understanding that, relating to
the companies owned by the State,
the moneys of the companies are not
theirs and that the Ministry of
Finance, whenever there is a
challenge, can do some manoeuvring
and take over the moneys and
probably, in good times, these
moneys would be returned to the
companies. There have instances

Report on the Audited Financial Statement of the GNPC for 2019/2020

where the moneys were never

returned to the companies and the

consequence is clear that that state

institution would be deprived of the

needed capital to do what is expected

of it. It is one observation that we

have seen as a Committee on Mines

and Energy and we want this thing

addressed properly.

Mr Speaker, one other factor

which we should pay regard to is

what Dr Kwabena Donkor said. Any

time a state institution deviates from

its core mandate and is entangled in

other matters, apart from those

decisions being ultra vires the statute

that gave birth to the state institution,

moneys could be wasted.

So, it is about time that we

whipped them into line. Their

mandates have been clearly defined

by law and I did not want to quote the

PNDC Law 64 because the mandates

are very clear. When one goes into

other undertakings, especially

without Parliamentary approval, the

tendency is that one might have some

serious problems and I think this is

what we are also trying to do as a

Committee to whip them into line.

Mr Speaker, given the financial

situation of GNPC, I am of the

humble view that they would move at

a tortoise pace in delivering their

mandates. There is a huge area of

Ghana's land space called the

Voltaian Basin. It is said that we have

huge reserves of crude oil and gas;

not offshore, but on our lands. I have

observed the small amounts of capital

they bring when they want us to

approve their work programme and it

could be seen that the moneys and the

allocations come in trickles. I do not

foresee a situation in which the

GNPC would be able to work on the

Voltaian Basin, which I am educated,

has more crude oil and gas than what

we are experiencing now.

Mr Speaker, it is imperative that

the GNPC should find credible

international partners or local

investors for the purpose of

accelerating the development of

crude oil and gas in the Voltaian

Basin. I am of the humble view that if

this is so done and there is an

acceleration of that, our people would

get good employment and it is going

to help the nation so well; apart from

the problem of crude oil which is now

an international issue.

Report on the Audited Financial Statement of the GNPC for 2019/2020

Mr Speaker, finally, there have

been some serious assertions that

some subsidiary companies have

been set up by the GNPC without

reference to this great House. I am

tempted to believe that they did not

come to this House to seek approval

to set up a subsidiary company.

Insofar as they are a statutory body

and believe that they need a vehicle

to pilot their activities, they could do

so, but a matter which has come to the

fore is that moneys intended for this

nation is with some foreign clients.

They are talking about offshore

funds. I thought my Hon good friend,

Dr Donkor, was not going to speak on

this matter because the Committee

has decided to bring before the whole

Committee; the Ministry of Finance,

the Ministry of Energy and the GNPC

to explain the kind of permutations

that went into these arrangements and

some moneys finding itself offshore.

This is a matter of great concern

and it has been penciled because of

the travel arrangement of the Hon

Minister for Finance as well as the

Hon Minister for Energy and also the

Managing Director for the GNPC.

The meeting has been deferred but

for sure, your Committee is alive to

its responsibilities. There is no

dispute about it. We are going to

interrogate the issues and then bring

a good report for the consideration of

the House.

Mr Speaker, I thank you for the

space you have given me although I

am not a member of the Committee;

continue to be gracious towards me

when it is necessary. I am grateful.

The
Chairman of the Committee has
spoken. Let me give the Hon Ranking
Member the opportunity.
Mr John Abdulai Jinapor (NDC
— Yapei/Kusawgu): Mr Speaker, thank you very much. Let me commend the Committee for a very detailed job done. This is comprehensive but there are a lot of things in this Report. As Dr Donkor did indicate, they focused on the financial health and wellbeing of the GNPC. The GNPC was established as our national oil company to hold our interest in the oil fields; that is the carried and participating interest and to also look at the possibility of having commercial interest. So, the GNPC is a strategic company. If one goes to Saudi Aramco, Petrobras and all those other national oil companies, are doing a very good job for their country. So, inasmuch as I agree that the GNPC may be veering

Report on the Audited Financial Statement of the GNPC for 2019/2020

off their core duty, if we can reposition GNPC and it becomes a profit-making entity, they can even give some dividend and money to the Government to put into such other activities that we are talking about. However, reading this Report, I am very worried about the state of the

GNPC.

If we look at page 4, it starts with

the profitability assessment of the company. If we look at the gross profit margin which is the gross profit expressed as a percentage of total sales, it has reduced from 50 per cent in 2018 to 26 per cent in 2019 to 0.3 per cent in 2020. This is serious; from 50 per cent to less than 1 per cent. If we look at the operating profit, which is also the operating profit expressed as a percentage of sales, it has moved from 28 per cent to -19.23 per cent. The operating profit is mostly the total sales less the cost of sales. So, it means that compared to what they sold and bought, they have made loss. Return on capital employed, which is the capital that they employed. Everybody expects to make some return from the money that was employed into the organisation. They are making a -16. So, they are even better off putting that capital in treasury bills because we invest in order to make some profit.

Mr Speaker, if we look at the

current ratio which normally look at

current liability and current asset,

within a year, they ought to sell and

also ought to pay. Those that go

beyond a year are known as long term

but the current ones have to do with

what happens within a year. It was

1.08, which means that they can

cover their current liability and still

have something. Today, it is 0.88. So,

when they take their total current

asset and sell it and go and pay their

total current liability, they cannot

meet that. Such a company is bound

to collapse.

The worst of all is even the acid

test because the acid test ratio deals

with cash and cash equivalent. It

means that today, if one moves to the

GNPC and make, noise that he or she

wants his or her money, bearing in

mind that money does not like noise;

bearing in mind that sika mpε dede — [Laughter]— Yes, because sika mp3 dede “to wit money does not like noise”. But with this acid test ratio, the small noise one makes — [Laughter]. In the same vain,

inasmuch as sika mpε dede, with this ratio, one can also say that sika mpε dwε “to wit money does not like bragging”. It is a serious matter. This company is on the verge of collapse

Report on the Audited Financial Statement of the GNPC for 2019/2020

and something ought to be done

about it. Dr Donkor talked about the

gearing. The gearing is a ratio

between debt and what has been

contributed as equity. If one is highly

geared, it means that one is taking too

much debt and too much loan but we

do not just end with the gearing. In

my opinion, the Committee did a very

good job. If we go to accounts

receivable and accounts payable,

inasmuch as they are looking at their

gearing, they are also looking at those

who are supposed to pay them. Are

they paying on time? Now, the

accounts receivable has moved from

108 days to 357 days which means

that on the average, it takes 108 days

for those who owe them to pay in 357

days. So, they would not even pay for

a year. That is the true situation.

Then, they go to accounts payable.

which is to say they also owe people

So within a year, how many days

does it take to pay.

They have moved to 447 days, so

it can no longer qualify as accounts

payable because it has moved beyond

the financial year. This is precarious.

Mr Speaker, the Hon Chairman of

the Committee, my very good Friend,

the indefatigable, hardworking,

committed and venerable Mr Atta

Akyea made a fundamental

statement, and I associate with him. If

we go to page 2 - Subsidiaries of GNPC, we have GNPC Exploration

and Production Co. Ltd (Explorco),

Prestea Sankofa Gold Limited,

GNPC Foundation, and Mole Motel.

Nowhere is Jubilee Holdings

mentioned here.

The Minority Side, therefore,

demands that the GH₵100 million that has been transferred by the Hon

Minister for Finance to Jubilee

Holdings as captured in the Public

Interest Accountability Committee

(PIAC) Reports be paid back with

immediate effect into the Petroleum

Holding Fund as envisaged in the

Petroleum Revenue Management

Act.

There is a certain explanation that

the GNPC borrowed money. The

Petroleum Exploration and

Production Act, 2016 (Act 919),

states categorically in sections 15 and

32 that before the GNPC can borrow

such an amount, it needs

parliamentary approval. It does not

have any parliamentary approval.

Mr Speaker, these are serious

matters, and through our Hon

Report on the Audited Financial Statement of the GNPC for 2019/2020

Minority Leader, Mr Haruna Iddrisu,

we intend to elevate this particular

issue to its highest level. We cannot

allow the nation's resources to be dissipated in such a manner.

Mr Speaker, on that note, let me

once again commend the Committee

and also recommend to the House

that we take particular interest in the

financial wellbeing and health of the

GNPC, going forward. Thank you

very much.

Let
me come to the Hon Member for
Manso Nkwanta.
Mr George Obeng Takyi (NPP
— Manso Nkwanta): Mr Speaker, thank you for this opportunity to
contribute to the Motion on the GNPC.
Mr Speaker, the GNPC is
responsible for the production of
crude oil and natural gas. As I make
my case, let us quickly look at the
mandate of the Corporation. If we
look at paragraph 11 of the Report, it
states:
“GNPC's mandate under
PNDC Law 64 of 1983 (now
PNDC Act 64) is to undertake
petroleum exploration,
development, production and
disposal. Among the objectives
of the Corporation are:
• To promote the exploration
and the orderly and planned
development of the
petroleum resources of
Ghana.
• To ensure that Ghana
obtains the greatest possible
benefits from the
development of its
petroleum resources.
• To obtain the effective transfer
to Ghana of appropriate
technology relating to
petroleum operations.
• To ensure the training of
citizens of Ghana and the
development of national
capabilities in all aspects of
petroleum operations.
• To ensure that petroleum
operations are conducted in
such a manner as to prevent
adverse effects on the
environment, resources and
people of Ghana.'

Report on the Audited Financial Statement of the GNPC for 2019/2020

Mr Speaker, the Committee looked into the operation of the GNPC, and if we look at paragraphs 13, 14 and the others, we would see that the profitability of the GNPC was not all that bad per the assessment of the Committee. For example, when we look at the revenue, in 2018, the Corporation made over US$400 million; 2019, US$349 million; and 2020, US$198 million.

Mr Speaker, when we look at this

assessment, the Corporation was making some good profits in gross and net margins. However, in 2018, there was a problem. At the same time, when we looked at the liquidity position of the GNPC, we saw that it was not all that bad; it was satisfactory.

The last issue about the financial

performance of the Corporation is the gearing. Yes, indeed, the gearing of the GNPC rose to a level which is challenging. However, we must take note that a gearing company does not mean that it is a dead horse or that it should be written off.

When a company is operating at a

good profitable level and it pays off

its fixed interest, any extra income

goes to the owners. It means that

fixed interest does not share any

excess income after they have been

paid their due. The problem is that the

moment a company has its profit and

revenue going down so much that it

cannot pay its interest, then the risk of

being liquidated or having to sell off

its assets to pay off becomes a

challenge.

Mr Speaker, however, looking at

the GNPC, I want us to look at four

important items that we have to look

into before we make any conclusions

about the Corporation. First, when we

look at its mandate, it talked about

technology and the expertise. The

other thing I want us to look at is the

external and internal factors,

particularly the external factors. The

GNPC is competing with other

petroleum industries outside Ghana.

It tells us that the competition would

demand effectiveness and efficiency.

Anything short of that would put it

off. Today, in the petroleum industry,

the greatest thing that we have to look

at is technology. Let us ask ourselves

whether we are putting in the

necessary funds to help the GNPC to

get the necessary technology. Are we

putting in the efforts to get new and

modern machinery that would help

propel the GNPC to compete very

well with the other international

Report on the Audited Financial Statement of the GNPC for 2019/2020

companies? Are we developing

expertise as required by the mandate?

It tells us that we have to

reposition the GNPC with the

necessary funding so that the GNPC

can stand on its feet in terms of

technology. If the capacity is not

coming from the shareholders, then

the GNPC would not have any choice

but to search for other sources of

capital, which is debt capital.

Therefore, if it comes to that, the

country should rally behind the

GNPC to secure the necessary

funding to put the company at a

proper level in terms of technology.

Mr Speaker, when it comes to

expertise, are we developing our

expertise or we always rely on

foreigners? The moment we rely on

foreign expertise, it means that they

take a chunk of our profits or

revenue. It is time Ghana invested in

its own manpower to ensure we have

the necessary personnel to help us

develop our industries.

The next point has to do with the

political issue. Politics in the field of

petroleum is very challenging and

serious. Today, we talk of the Russia-

Ukraine war. Now, petroleum has

become a political tool when there

are sanctions. If one is coming from

our part of the world and one does not

position himself or herself in terms of

the political atmosphere and

manipulation, it means that one is

going to subject his or her industry to

a set of risks.

Mr Speaker, on that note, I am

calling on this House to ensure that

we put our heads together as a people

to put in place the proper strategies in

terms of technology and politics to

ensure that anytime there is any type

of external factors in terms of these

wars going on and the politics that

goes with it, including the sanctions,

Ghana would be very well positioned

to make sure that we take our pound

of flesh when it comes to petroleum.

Mr Speaker, on this note, I may

want to say that it is we the Ghanaian

people who have to take our destiny

into our own hands, in terms of the

petroleum industry, by putting in

place the necessary mechanisms to

raise the necessary capital, ensure

that we have good technology and

expertise, and that we position

ourselves when it comes to the

external challenges so that we would

be competitive in the industry and

also reap better to help our country in

terms of employment, revenue and

taxes.

Report on the Audited Financial Statement of the GNPC for 2019/2020

Mr Speaker, on that note, I support

the Motion.

Some Hon Members — rose —

Thank you very much. Hon Minority
Leader, I would take one contribution
from each Side before I come to
Leadership.
Hon Member for Bia East, let us
hear you.
Mr Richard Acheampong (NDC
— Bia East): Mr Speaker, thank you very much for the opportunity to
contribute to the Report on the Floor.
I would like to make few comments
on the Report.

First, referring to page 7 of the

Report, the Committee is telling us

that the amount owed the GNPC

amounts to US$603 million and an

impairment of US$212 million,

which translates into about 35.3 per

cent. The Committee went further to

give us the details of the debt. It

mentioned GoG — US$23 million, Ministry of Finance, Tema Oil

Refinery, Ghana National Gas

Company (GNGC), and the rest.

Since it is telling us the agencies that

owe the GNPC, why did it say GoG?

Which agency is that? Is it the

Presidency? This is because the

Committee has given us the details:

Ministry of Finance, Tema Oil

Refinery, GNGC, Ministry of Energy

(MoE), and Priority Deficiency Gas,

but again the GoG still owes GNPC.

Which agency is that? The Report

should tell us the agency under the

GoG that owes the GNPC that US$55

million so that there would be clarity

on it.

Mr Speaker, the Committee went

further to state that the GNPC is

deviating from its core mandate. It

complains about it, but it has refused

to tell us the type of activity

undertaken by the GNPC which it is

complaining about. Is it the Astro

Turf or the money the Corporation

gave to some chiefs? Which one is

the Committee complaining about? It

cannot just complain and expect us to

understand what it is telling us

because we did not attend the

Committee meeting. The Committee

should give us the full details so that

we follow through to make sure that

the right thing is done.

Mr Speaker, the Hon Chairman of the Committee on Mines and Energy

Report on the Audited Financial Statement of the GNPC for 2019/2020

made a very good proposal: that the Corporation can seek for international investment to support its operation. However, no investor who sees this balance sheet would put money in GNPC. No company would do this. These are some of the things that the Committee should help us to understand so that we would help it to make sure that the right thing is done when it exercises its oversight responsibility so that there would be value for money.

Mr Speaker, with these few

comments, the Committee should give us more details next time so that we can also support its work. Thank you very much for the opportunity.

Mr Kwabena O. Darko-Mensah

(NPP — Takoradi): Thank you very much.

Mr Speaker, I believe that the

Report was well written, and we need to support the Committee in accepting its recommendations. The Ghana National Petroleum Corporation (GNPC) is headquartered in Tema, but all of its production comes from the Western Region. Therefore, when a Report like this is presented, it is very important that I also make a contribution.

Mr Speaker, I have heard other

speakers bash the GNPC, but we can

see from the Report that it is doing

well in some areas, and we need to

commend the Corporation for it. If

we take the Corporation's assessment of short-term solvency, it indicates

that the GNPC's liquidity was moderate. So, clearly, it is not a bad

case.

If we also look at the issue of

inventory, the GNPC maintains a

very low inventory, and that is a very

key and good management practice,

and I believe that we need to

commend the Corporation for it.

Mr Speaker, if we also look at

paragraph 27, which talks about

efficiency assessment, the last

statement says that the Corporation

also maintains a good working capital

management strategy. So, clearly, in

some aspects, the GNPC has been

doing very well. Therefore, we

cannot all talk about problems. This

is because in 2018 and 2019, the

GNPC did well. Unfortunately, 2020

is when, I believe, some of the

difficulties came. I believe that we

need to stand on this and ask

ourselves what happened in 2021 and

2022, so we can advise on what it

needs to do. This is because the

Report on the Audited Financial Statement of the GNPC for 2019/2020

GNPC is a very important strategic

national asset, and it is very important

that while we bash it for the wrong

things, we need to also encourage it

to do the right things more so that it

can use that to balance or offset the

problem.

The issue of core mandate is one

of the areas in this Report that I

support. It is important that we take

areas such as Mole Motel Ltd, Prestea

Sankofa Gold Ltd, and the likes, off

GNPC and give them to other entities

to manage. This is because GNPC

tends to sink so much money into

these operations yet we do not get the

profit that we need from them. I

believe that these are strategic assets

that can grow on their own.

Mr Speaker, if one comes to the

Western Region, a lot of the gold

mines are doing well; Gold Fields,

AngloGold Ashanti, Persus, and

Adamus are doing well. Why is it that

Sankofa cannot do well and every

time the GNPC tends to put a lot of

money to make it survive?

Mr Speaker, so, I believe that on

the issue of taking some of the other

smaller companies from the GNPC to

enable it to work on its core mandate

is key and is one area in this Report

that should go to the Rt Hon Speaker

for him to direct the Corporation to

look at it strategically in order to

ensure that we wean these companies

off the GNPC's core mandate of exploring and producing oil for the

good people of this country.

Mr Speaker, with these few words,

I thank you for the opportunity.

Thank you very much. I would now
come to the Leadership. Yes, Hon
Minority Leader?
Minority Leader (Mr Haruna
Iddrisu): Mr Speaker, I would like to
thank you very much for the adoption
of the Report of the Committee on
Employment, Social Welfare and
State Enterprises on the performance
of the GNPC. In doing so, I refer you
to paragraph 11 on page 2, which
provides that GNPC's mandate under PNDC Law 64 is to undertake
petroleum exploration, development,
production and disposal. Among the
objectives of the Corporation are — and to warn that Ghana needs to take
a certain position about the future of
the GNPC and related entities in our
hydrocarbon space. This is because
the world is shifting very fast from
fossil fuel in response to the green

Report on the Audited Financial Statement of the GNPC for 2019/2020

climate needs of the world. The

energy transition is on, and we

should, therefore, not expect that

what we get from our carried interest

and other things would continue to be

so in the foreseeable future.

Mr Speaker, in support of the Hon

Chairman of the Committee on Mines

and Energy, Mr Samuel Atta Akyea,

and the Hon Ranking Member, Dr

Kwabena Donkor, when we look at

the subsidiaries of the GNPC as listed

from page 2 to 3, conspicuously lost

is the Jubilee Holding Company. We

are requesting the Committee on

Mines and Energy and the Committee

on Employment, Social Welfare and

State Enterprises to probe further

because the Public Interest and

Accountability Committee (PIAC)

Semi-Annual Report, 2022,

recommends that the proceeds from

lifting by Jubilee Oil should be paid

into the Petroleum Holding Fund as

PIAC is convinced that the proceeds

form part of Ghana's petroleum revenue. So, whoever is keeping this

money or have diverted this money

must return the money and treat it as

part of Ghana's petroleum revenue, which is about US$100 million.

Mr Speaker, it is significant that

Jubilee Holding is not listed as a

subsidiary, so how come it holds up

to US$100 million of state resources?

This means that we should demand

more transparency and accountability

in the utilisation of these petroleum

resources. I would associate myself

further with the comments made by

the Hon Deputy Ranking Member,

Dr Kwabena Donkor, as to the future

positioning of the GNPC generally

and, particularly, reducing some

activities it does outside its core

mandate.

Mr Speaker, with this, I support

the Committee's Report, save to end again with page 7 to page 8. What

happens when the Committee lists

those who owe: the Ministry of

Finance - GH₵55 million, and the Ministry of Energy's current account? I think the Committee on

Mines and Energy must take this up

during the Budget hearing. How

come that the Ministry of Energy's current account has a deficit of

US$16,525,000 as money it owes the

GNPC? We should understand that.

At what point did they get the

authority to allow this to happen and

sit in the accounts of the Ministry of

Energy? What was it used for? We

Report on the Audited Financial Statement of the GNPC for 2019/2020

should demand what the money was

essentially used for. We are told that

there is Priority Deficiency Gas —

US$67,361,466, and then Volta River

Authority (VRA) — US$99,533,377.

Mr Speaker, I speak in support of the

adoption of the Motion.

Mr Speaker, on page 8, the last

paragraph reads:

“To improve efficiency,

Parliament should rein in the

quasi-fiscal and corporate

social responsibility activities

of GNPC and enact a new law

for the Corporation…”

Parliament does not initiate

legislation; so, if they are directing

that the Executive must take

particular interest in bringing a new

Bill, they must say so. Even though

we can do so on our own, we would

not because this cannot be

encouraged under Private Member's

Motion. It should not be Parliament.

It should be the Executive or the

President being encouraged that we

need a comprehensive review of

legislation which allows for deeper

transparency and accountability.

Thank you, Mr Speaker.

Thank you very much. Let me now
go to the Hon Majority Leader.
Majority Leader (Mr Osei-
Kyei-Mensah Bonsu): Mr Speaker, I
also rise to support the call for the
adoption of the Report of the
Committee on Employment, Social
Welfare and State Enterprises on the
Annual Financial Performance of
GNPC for the years 2019 and 2020.
Mr Speaker, it is important to
relate to the issue raised by the Hon
Minister for the Western Region, Mr
Kwabena Okyere Darko-Mensah.
article 35(6)(e) of the 1992
Constitution is very clear. With
respect, if I should quote, it says:
“Towards the achievement of the objectives stated in clause (5) of
this article, the State shall take
appropriate measures to —
(e) ensure that whenever
practicable, the headquarters
of a Government or public
institution offering any
service is situated in an area
within any region, taking
into account the resources
and potentials of the region
and the area.”

Report on the Audited Financial Statement of the GNPC for 2019/2020

Mr Speaker, the language is

unambiguous. The overwhelming

proportion of our oil exploration and

exploitation comes from the Western

Region. Has the time come for us, as

a nation, to have a second look at

this? In the nearest foreseeable

future, certainly, it would be like that

in terms of petrol, diesel and even

gas. I think that the issue raised by the

Hon Western Regional Minister

should engage the attention of all of

us.

Mr Speaker, the core mandate of

the GNPC, we are told, and indeed, it

has been listed on page 2 of the

Report says they exist:

• “To promote the exploration

and the orderly and planned

development of the petroleum

resources of Ghana,

• To ensure that Ghana obtains

the greatest possible benefits

from the development of its

petroleum resources,

• To obtain the effective transfer

to Ghana of appropriate

technology relating to petroleum

operations,

• To ensure the training of citizens of Ghana and the

development of national

capabilities in all aspects of

petroleum operations and

• To ensure that petroleum operations are conducted in

such a manner as to prevent

adverse effects on the

environment, resources and

the people of Ghana”

These are the core responsibilities.

Today, we are told that GNPC has

branched into other areas. The

principle may be good because

perhaps, they want to ensure that they

invest whatever monies that come to

them to attract greater profits to the

country. I may share in the principle.

However, the antecedents of GNPC

itself do not support this endeavour at

all.

Times where, when the GNPC

branched into the making of salt, the

principle was good, but it caused this

nation such huge expenditures, with

very little returns. Indeed, we were

making losses. GNPC, at a point in

time, branched into cocoa

production. All these endeavours did

not yield anything positive to this

country. The principle may be good,

Report on the Audited Financial Statement of the GNPC for 2019/2020

but the antecedents do not support

this. GNPC should be immediately

encouraged to depart from this path

because if gold minning is very

profitable in this country, how come

Prestea Sankofa Gold Ltd is not

making much profit?

Mr Speaker, I have been to the

Mole Hotel, and I was there

incidentally with the Hon Minority

Leader. We both enjoyed the facility,

but I did not know that it is the GNPC

that controls 60 per cent of the hotel.

Even though the facility is good, it is

not yielding the requisite returns so,

why do we continue to do this and let

the economy and indeed, the finances

of this country suffer?

Mr Speaker, I do share in the

opinion expressed by Hon Members

who have spoken before me that the

GNPC should be encouraged to

depart from that path. The second

mandate provides that they are:

“To ensure that Ghana obtains the greatest possible benefits

from the development of these

petroleum resources”.

Are we having the best possible

benefits from these investments of

the GNPC? Certainly no. So, why

should they be pushing on that path?

Mr Speaker, the Hon Minority

Leader has spoken to the fact that we

are in an era of energy transition; the

de-emphasising of the usage of fossil

fuel. What it means is that if we do

not explore to exploit our resources

now, 15 to 20 years from now, we

may be confronted with stranded

assets. They may become more or

less useless. That is why it is

important for us to explore to exploit

the petroleum resources that we have

now. We are not in any way

suggesting that 15 to 20 years from

now, fossil fuels may not be in use.

They may be in use in many areas

apart from maybe in vehicles et

cetera, but the production of energy,

using petroleum resources to propel

our thermal plants, may be there in

the next foreseeable future.

However, what we should

recognise is that the United Arab

Emirates (UAE) produces fossil

fuels, but today, they are going

nuclear. Indeed, Abu Dhabi has

inaugurated four nuclear plants in the

last one and a half years, producing in

total, over 12,000 megawatts of

power.

Report on the Audited Financial Statement of the GNPC for 2019/2020

Two of them are due to be

inaugurated next year to bring it up to

six. The total number of plants being

constructed is eight.

Mr Speaker, we should be careful.

We are moving out of this, and this is

why we must exploit what we have.

Indeed, they are not abandoning their

own fossil fuels. They are producing

and storing them because they know

that for the time being, we still would

continue to need fossil fuels. I believe

we should not abandon them

immediately, but we should focus on

the exploitation; we must explore to

exploit.

Mr Speaker, having said so, the Committee has indicated to us, the key challenges that GNPC has. I think the Committee on Mines and Energy, as has been proposed by Hon Richard Acheampong, should perform their oversight responsibilities. This Report is about the profitability or otherwise of GNPC, that is what we are discussing, but in terms of its operations and activities, the oversight rests with the Committee on Mines and Energy. I would entreat the Hon Chairman, who is not listening to me at the moment, —

[Laughter] —to programme to meet with GNPC and come to this honourable House with a report on their operations and activities because this Report by the Committee on Employment, Social Welfare and State Enterprises just delves into the profitability or otherwise of the corporation.

The Committee provides

oversight on the conduct of their activities, and I am entreating Members of the Committee to immediately engage with them to let us know the problems existing in the conduct of their activities. We are told about some accounts that have been setup by them. We should investigate further to brief this honourable House, and if there are any defects or deficiencies in the conduct of their business, we stand them ready to bring them into line.

Mr Speaker, I thank you for the

space granted.

Question put and Motion agreed

to.

Resolved accordingly.

We
would move to Motion numbered 7.

I invite the Vice Chairman of the Committee to move the Motion.

Very well. Let me invite the Hon
Ranking Member to second the
Motion.
Ranking Member of the
Committee (Dr Kwabena Donkor):
Mr Speaker, I beg to second the the
Motion numbered 7 on the Order
Paper, and in seconding, I would like
to state that the GIHOC Distilleries
epitomises the inefficiency,
ineptitude, and rot in State-owned
Enterprises, and I say this with all
seriousness. Mr Speaker, even in the
distillation of alcohol, the Ghanaian
State is making losses. If you go to
my constituency, the capital of Yeji,
the woman who operates the “blue kiosk” does not make losses from selling alcohol, but the Ghanaian
State, even in operating an alcohol
business, consistently incurs losses.
Mr Speaker, the GIHOC also
epitomises a challenge we have had
as a nation-state, and I am happy both
the Hon Majority and Minority
Leaders are in the Chamber. The
Ghana Audit Service that audited the
accounts of the GIHOC Distilleries
has no mandate, under the law, to
audit the accounts of companies.
Section 11 of their parent act, Act
584, does not give the Audit Service
the power to audit companies.

Mr Speaker, this is one of the

challenges that arises when the

nation-state is not thorough. At the

time Act 584 was passed, all these

companies were corporations, and

therefore, covered by the law. When

they were turned into companies, the

Audit Service Act was not amended

to reflect the new status of these

bodies. Therefore, we have continued

to, in my opinion, illegally audit these

companies. Indeed, some companies

have challenged the authority of the

Audit Service to audit them.

Mr Speaker, this honourable

House must take this very seriously.

If we want the Audit Service to audit

state-owned companies, as opposed

to corporations, authorities, and other

statutory bodies, we must say so, and

bring a Bill to amend Act 584 to give

the Audit Service that power. Either

than that these companies would have

to be audited by auditors appointed

by the Boards of the companies, as

provided for in the Company's Code.

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

Mr Speaker, it is also important in

that GIHOC Distilleries epitomises

the total disrespect for audit and

financial timeframes by state-owned

companies. Per the Public Financial

Management Act, 2016 (Act 921);

the Companies Act 2019 (Act 992),

and good corporate governance,

accounts of companies should be

audited latest by the end of the second

quarter. We have come across state-

owned companies and organisations

whose accounts have never been

audited for three or more years. We

totally have a disregard for audit

timeframes, and it does not augur

well for this country. It is, therefore,

not surprising that the Ministry of

Finance has run into a challenge with

the World Bank over the auditing of

a facility that the Ministry of

Education utilised. We, as a people,

must begin to take auditing

timeframes seriously.

Mr Speaker, I would also like to

bring to your notice that your

Committee found, and I refer to

paragraph 23, that for the year 2020,

the auditors gave a “qualified opinion” on the accounts of the GIHOC Distilleries, and this is a

serious matter. When auditors give a

“qualified opinion”, it just states that

the accounts fall short of the standard,

so it is important that this is noted.

Mr Speaker, it is also important

that the Ghanaian state must be very

conscious of what it sets up. If we set

up a commercial company, the only

yardstick for that company is

profitability, efficiency, and

utilisation of assets. In the case of the

GIHOC Distilleries, as stated in

paragraph 25, the company increased

employment from 169 in the year

2017 to 552 in the year 2020 while it

was making consistent losses year

after year. Indeed, when they

appeared before your Committee, the

Hon Ranking Member told the Chief

Executive Officer that the GIHOC

Distilleries is not the Youth

Employment Agency (YEA). It is

only the YEA that has the mandate to

create jobs with no relationship to

profitability. State organisations must

be run efficiently, effectively, and

profitably to return a dividend to the

State, which can then use these

proceeds for its social interventions.

Commercial companies are not set up

as social intervention vehicles.

Mr Speaker, it is also very

important to reiterate that the State

refused to patronise the products of

the GIHOC Distilleries. During the

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

COVID-19 pandemic, the GIHOC

Distilleries produced the best

sanitisers on the market, and a lot of

private sector entities patronised

them. The GIHOC Distilleries

brought samples as donations to most

state institutions; the Presidency, and

Parliament. This House used the

samples, yet refused to patronise

them; we went outside to buy

sanitisers. Why is it that the State

refuses to patronise the products of its

own entities, but would rather go and

buy from the private sector?

Mr Speaker, the issues are many,

but because of limited time, I would

just make a last comment: we also

found that the GIHOC Distilleries did

not even have an impairment

provision in its financials. This is

contrary to International Financial

Reporting Standards (IFRS), when

one has huge debtors, and does not

have an impairment provision. It is

high time we professionalised the

management of state entities, and on

both Sides, stopped using state

institutions as ‘thank you' for political activists and political

operatives.

I thank you, Mr Speaker.

Question proposed.

I
am inviting two contributions from
each Side. Let me —
Mr George Kwabena Obeng
Takyi —rose—

Hon Member for Manso-Nkwanta,
are you ready to take the bite? Let us
hear you.
Mr George Kwabena Obeng
Takyi (NPP—Manso-Nkwanta): Mr Speaker, thank you. GIHOC
Distilleries is one of the initiatives
which is touted to help the Ghanaian
economy to develop as an
industrialised country. For now, the
GIHOC Distilleries is doing well in
terms of its products, having about 25
products to its credit, some of which
it exports, and also has local
patronage. The GIHOC Distilleries,
if given the opportunity, can grow the
economy, and expand its base to
absorb more of the young people to
gain employment.
Mr Speaker, the GIHOC Distilleries
has the potential to boost the export
drive whereby the use of foreign
exchange which is needed to import
most of these alcoholic beverages
could cease one day. Therefore,

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

GIHOC Distilleries, once properly

managed, can be on the edge of

helping Ghana to diversify its

economy in terms of export.

However, GIHOC Distilleries has

its own challenges, but I do not

believe that it is so inundated that we

cannot surmount and put the

company in its proper perspective.

There was a decline in profitability,

particularly, in the years 2019 and

2020, during the COVID-19

pandemic, when all industries and

firms were declining in terms of

productivity. GIHOC Distilleries at

the same time had high direct costs in

its operations, on which note they had

most of their profit dwindle in

administrative and other financial

charges.

Mr Speaker, debt also increased

from the average of 14.6 per cent to

22 per cent. Paragraphs 18 and 19

state:

“18. The Committee observed that the amount of debt in the

capital structure increased

from 14.6 per cent in 2018 to

32 per cent in 2020.

19.The debt-to-equity ratio also

worsened from 17 per cent in

capital employed in 2018 to 49

per cent in 2020. This

increased the degree of risk

attached to the Company and

the sensitivity of earnings and

dividends to changes in

profitability and activity

level.”

There is risk attached to the

company, and it was very sensitive to

its earnings, because when you have

more debts and you are paying more

interest, it means that your available

net capital that will go to your

shareholders is also reduced.

However, I would like to make the

point that the fact that a company has

more debt does not mean that the

company is off its track. The

company may incur more debt, but if

they are able to sustain and pay off

the debt, anything that is left over

goes to their shareholders.

Mr Speaker, the liquidity of the

company was good despite the

challenges in terms of its financing.

The working capital of the company

shows that the assets of the company

compared to its liabilities as well as

its revenue growth were in good

shape. Looking at paragraph 12 of the

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

Report, the company saw a good

growth in its revenue. For example,

in 2018, the revenue strength of the

company was GH₵62.57 million; in 2019, it grew up to GH₵64.77 million. In 2020, it grew up to

GH₵70.6 million, and in 2021, up to GH₵76.6 million. That tells you that GIHOC Distilleries has good

prospects to propel the country to a

very good height.

Mr Speaker, despite these things, I

believe that if Ghanaians patronise

the GIHOC products—as we saw in the company's financial statements, a good number of the company's products like sanitizers and water

they produced were not absorbed and

consumed by Ghanaian companies or

enterprises; rather such goods were

imported. If we are to put the

company in good shape and local

corporations and companies are

taking care of these products from

GIHOC internally, then it means that

GIHOC would have the market to

produce more and earn more for the

company.

Mr Speaker, at the same time,

GIHOC is making good use of our

local farm products, if we encourage

GIHOC and Ghanaian scientists and

researchers to make good use of our

local products and conduct research

into it, GIHOC would make good use

of farm products, and it would help

our farmers to produce more, expand

their farms, and employ many young

people.

Mr Speaker, I would conclude by

saying that it is not all the time that

we see our corporations and

companies in bad light; rather, we

have to see them with good eyes, help

them to get out of the challenges they

face and position them — I believe

that GIHOC is one of the companies

that can one day become very big and

help the country to absorb most of the

teeming youth who are unemployed,

and to help our farmers produce more

through research by using the local

products. It would help GIHOC move

the economy, export more, earn more

dollars, and give the country the

opportunity to wean itself from the

import of foreign alcoholic beverages

which we are struggling to produce in

our local industry.

Mr Speaker, thank you very much

for the opportunity.

Mr Abdul-Rashid Pelpuo —

rose —

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

Thank you very much, Hon Member.
Let me give the opportunity to the
Hon Member for Wa Central.
Dr Abdul-Rashid Hassan Pelpuo
(NDC — Wa Central): Mr Speaker, I thank you for the opportunity to
contribute to the Motion.
Listening to the presentations by
both the Hon Chairman and the Hon
Ranking Member of the Committee,
it reminds me of the challenges we
face all along with state enterprises. It
hurts that we see a state endeavour
like Ghana Airways Ltd, Ghana
Railways Company Ltd, and all the
others that belong to the state just
fizzle out to nothingness because
management is poor, inefficient, and
there is a direct attempt by
individuals to benefit rather than the
state. This GIHOC situation is just a
clear example of such a failed
enterprise.
Mr Speaker, I would like you to
call for an investigation into a
company that has all the potentials to
make profits but consistently make
losses. I would like you to call for an
investigation into the fact that we are
told that the finances of the company
are not affected despite the losses
because of bank overdrafts.
Consistent bank overdrafts that have
risen over years and yet returns are
very poor, eventually, one finds that
the company comes to its knees
because of huge investment in
personnel.
Mr Speaker, it would be important
for you to call for an investigation
into the fact that from 2018, the
company increased the 169 people it
engaged to work with to as much as
552 people. Was it because of the
need to expand? Was it because of the
need for them to do much more than
they are doing? We cannot see the
impact of this.
Mr Speaker, we cannot understand
that we demonstrate enough
patriotism for Ghana. We gained
independence with a lot of countries,
and these countries are doing very
well. Small companies are
blossoming into bigger ones, jobs are
created and people are employed but
when it comes to Ghana, the
companies are dying and individuals
are benefitting out of it only in a small
manner, and then the companies do
not exist anymore.
Mr Speaker, I think that we can
demonstrate that we are serious about

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

what is happening to our state

enterprises and I would like to crave

your indulgence to make a direct

response to the cry by the Hon

Ranking Member for some

investigations to be done aside from

the financial investigations done by

the auditors chosen by these

companies. There should be an

independent investigation done and

some punishment given to people

who may have been deliberately

causing these losses.

Mr Speaker, it is important so as to

save this company and also to save

the future generations because if we

come here and reports are read,

adopted, voted on, and then it goes to

sleep, it means nothing. Something

has to be done and I call on you to call

for an investigation so that

concretely, we can say that, because

of the efforts of Parliament, some

benefits have come to GIHOC.

Mr Speaker, I call on you to do

something about it. Thank you.

Mr Rockson-Nelson Etse

Kwame Dafeamekpor — rose

—

Thank you very much,
Hon Minister for Public
Enterprises, will you say something?

Mr Speaker, thank you for
the opportunity to —

Very well.
Hon Minister, could you hold on
for us to hear from the Hon Member
for South Dayi.
Mr Rockson-Nelson Etse
Kwame Dafeamekpor (NDC — South Dayi): Mr Speaker, thank you
for the opportunity to add my voice to
the Motion regarding the adoption of
the Report in question.
Mr Speaker, in doing so, I wish to
comment particularly on paragraph
26 of the Report. The terms of this
paragraph are very instructive that as
a state institution that engages in the
production of hand sanitizers and
COVID-19 products we, as a country,
did not patronise. I know that as a
House, we spent a lot of money to
procure some of these products from
other entities and so I think it is one
of the key ways by which we can
patronise goods and services of our

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

own state institutions to make them

profitable.

The Report clearly indicates that

they are not making profit, and I

believe that if the Ministry of Health

had focused on procuring some of

their products, it would have put them

into profits. So, it is an important

guide to the House.

Also, I heard the Hon Ranking

Member raised the issue of the

legality of the audit of the firm by the

Audit Service and he referenced,

particularly, section 11 of the Law.

Yes, I agree that section 11 of the

Law in some other terms reference

corporations, but we have, subsequently

by legislation, established other

institutions not to name them

corporations but companies. So, the

relevance of section 11 and section

14 of Act 567 is still applicable to

them.

Mr Speaker, indeed, with your

permission, if I may read section 14

of the Law in question, with your.

Under Auditing of Statutory

Corporations in subsection 1, it says:

“In respect of the accounts of a statutory corporation, a state

enterprise or a public commercial

institution operating under its own

enactment, the Auditor-General

or any person appointed by him

shall upon the examination of the

accounts of the body or institution

express his opinion as to whether

the accounts present fairly

financial information in

accordance with the applicable

statutory provisions, stated

accounting policies of the

Government, and is in accordance

with generally-accepted

accounting standards and

essentially consistent with that of

the preceding year.”

Therefore, the essence is that it is

a de minimis that we may not have

changed the name from

“corporation” to “company”, but the law establishing the Audit Service

still mandates the Audit Service and

the Auditor-General to audit the

accounts of statutory bodies, state

agencies or agencies that the State

has interest in, pursuant to sections 11

and 14 of the Law. So, I would just

like to draw the attention of the

House to the fact that even though

some entities may raise the matter,

the Audit Service has the authority in

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

law to audit their accounts in

accordance with article 584.

Mr Speaker, I thank you for the

opportunity.

Very well.
I will now come to Leadership.
Minority Leader (Mr Haruna
Iddrisu): Mr Speaker, while I speak
in support of the adoption of the
Committee's Report — I am a Member of the Committee — I believe that next time, the Committee
must go further to make far-reaching
recommendations. It is not just
enough to access profitability or
otherwise, rather, it should consider
what we can do to support the entity
to be profitable. I am particularly
happy that the Hon Minister for
Public Enterprises is here in the
Chamber.
Mr Speaker, may I refer you to the
paragraph on “Observations” of the
Committee's Report, an unnumbered
page. Kindly allow me to read
paragraph 25, which concerns the
issue the Hon Member for Wa
Central, Dr Abdul-Rashid Hassan
Pelpuo, raised. We would need the
Hon Minister to come back to this
House to report on some actions he is
taking. It reads:
“The Committee noted with
concern the increase in employee
numbers from 169 at the
beginning of 2017 to 552…”
There can be no justification for
this anywhere that one would not be
mindful of productivity but would
just increase the numbers for the sake
of increasing them when one wants
the entity to be profitable. How can
an entity like GIHOC Distilleries
have an employee population of 552?
Would the person who runs the entity
do that if it was his private enterprise?
Mr Speaker, we should compare
GIHOC Distilleries to any other
private entity, like Kasapreko
Company Limited which is doing
very well and probably in the
production of similar products. One
cannot increase staff numbers from
169 to 552. So, we would need the
Hon Minister to come back and tell us
what steps he is taking; there must be
a relationship between those numbers
and productivity. Even as a nation,
part of our problem is the pretence of

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

a bloated Public Service. We do not

have the courage to downsize our

Public Service, and now we have a

private entity doing same?

Mr Speaker, this is my honest

views: What business has the

Government of Ghana in producing

alcohol? The Government should

provide an enabling environment for

a private-sector person. The

Government should list GIHOC

Distilleries as part of its divestiture

State Enterprises and make sure that

they give it out to a viable private-

sector Ghanaian. Kasapreko

Company Limited is a Ghanaian

entrepreneur who is doing well. Why

must the State even put money into

GIHOC Distilleries?

Mr Speaker, finally, my other

observation is captured under

paragraph 23, and the Hon Member

for South Dayi, Mr Dafeamekpor, has

answered the other question as to

whether the Auditor-General can

audit the accounts of GIHOC

Distilleries. That should settle the

matter. Once it is a State-owned

enterprise, there are public resources

invested in it. I believe that the

Auditor-General is empowered under

article 187 of the 1992 Constitution

to look into their books. However,

what is worrying is what the

Committee captures as “qualified opinion” from the Auditors. With your permission, I beg to read:

“The Committee was unhappy that the Financial Statement of the

company for the 2020 financial

year was a ‘qualified opinion' The basis of their ‘qualified' opinion was that ‘We are unable to obtain sufficient appropriate audit

evidence about the debtors and

creditors balances in the

Company's Statement of Financial Position as at 31st

December 2019.”

Those who know accounting

better — if it is a ‘qualified opinion', why should we even proceed when

the Auditors tell us that they have

expressed a ‘qualified opinion'?

Mr Speaker, it means there is a

lack of transparency. The Board and

management of GIHOC Distilleries

are not forthcoming with evidence for

their books to be examined.

Therefore, I am even at a difficulty

that the Committee would look at it.

They should have thrown them away

as not being suitable for the purposes

of our enquiry. A ‘qualified opinion', as I understand it, would mean that

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

even the Board Chairman should not

have signed the Financial Statement.

Then, worst of all, we have the

Financial Statement of 2020, which is

only ready in 2022.

Mr Speaker, therefore, concerning

the GIHOC Limited case, while we

should approve this, the Hon Minister

for Public Enterprises must explain to

us what he is doing to make GIHOC

Distilleries viable, efficient and

productive. I cannot justify

increasing employee numbers from

169 to 552. If it were any person's own enterprise, he would not do this.

So, the management of GIHOC

Distilleries should not do this to the

State of Ghana because they find the

State as a weak grandfather. That is

not acceptable.

Mr Speaker, which entity in

Ghana would produce gin — [Interruption] The Hon Majority

Leader says I am saying this because

I do not drink alcohol — with 552 employees just at GIHOC

Distilleries? The company used to be

under my watch as the former Hon

Minister for Trade and Industries,

and it was essentially not these

numbers at all. Therefore, the Hon

Minister owes us an explanation for

the ballooning of the numbers. As I

said, even as a country, part of

Ghana's problem is with compensation as a significant

percentage of our revenue goes into

it. Our Public Service needs a

downsizing, but we do not have men

with courage to do it; it is over-

bloated, but we should not extend this

to the private sector; no, we cannot

just increase the number of

employees within this short period.

Mr Speaker, their books must be

looked into properly. With these

words, I associate myself with the

Report. I thank you for the

opportunity.

Majority Leader (Mr Osei Kyei-

Mensah-Bonsu): Mr Speaker, I

thank you very much for the

opportunity to also associate myself

with the Report of the Committee on

Employment, Social Welfare and

State Enterprises on the Audited

Financial Statement of the Ghana

Industrial Holding Company Limited

(GIHOC) for the years 2019 and

2020.

Mr Speaker, just before I

commence, since we are into some

lamentations, we would like to know

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

the mandate of GIHOC Distilleries.

Is it for them to provide employment

to Ghanaians, or they exist as a

sovereign entity to make profit? What

is the core mandate? Unfortunately,

even though the Hon Member did

that for the GNPC, with this, we are

not so certain, so one is not too sure

of the mandate of GIHOC Distilleries.

Mr Speaker, I know that in the

socialist countries, state-owned

enterprises are set up primarily to

offer employment to the citizens.

When these enterprises came up in

the year 1958, the focus was on the

provision of employment. Today, I

believe we are departing from that

and indeed, we must do that and

refocus on the profitability of the

enterprises. Apart from offering

employment, the primary focus

should be on profitability and that is

why I even believe that for these

state-owned enterprises, we should

have a separate Committee in the

House to deal with them. We have

linked it to the Committee on

Employment, Social Welfare, and

State Enterprises. Our focus is on

employment and social welfare and

not on the profitability of such

ventures. I would think that if we still

would like to hold on to these state-

owned enterprises, then, we need one

Committee to be dealing with them.

That should be the focus and remit of

any of such Committee that is created.

Mr Speaker, we have walked this

path before. These enterprises created

by the State - in the area of transportation, for instance, we have

seen the collapse of Ghana Railways

and we are trying to bring it back. We

have also seen the collapse of Ghana

Airways and OSA Transport

Company. Even though private

enterprises involved with them are

making huge profits, our focus was

on employment and that is why we

should recline and do what is

necessary. State farms have been

created and individual farmers are

making huge profits. The State went

into cocoa farming and heaped

losses. Therefore, it is like these are

State properties so let us all eat from

it. Otherwise, it becomes difficult to

explain.

Mr Speaker, I believe the Hon

Member for Pru East, Dr Kwabena

Donkor would remember this. I guess

the Hon Member for South Dayi, Mr

Dafeamekpor is too young to know

anything related to GIHOC

Distilleries. Those days, growing up,

the most popular brand that was

coming from GIHOC Distilleries was

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

Okukuseku. Even the Hon Member

for Abuakwa South, Mr Samuel Atta

Akyea does not even know that. It

was Okukuseku and it was more or

less considered a national asset

everywhere in Ghana. Those days,

Akpeteshie was not known;

Okukuseku was everywhere.

Incidentally, I refer to the National

Chairman of the National Democratic

Congress (NDC) who is my bosom

friend as Okukuseku and he also calls

me by the same name. That is how we

refer to each other. I do not drink

those hard schnapps.

Those days, GIHOC Distilleries

was very profitable so we must really

investigate why all these state-owned

enterprises - in Kumasi, for instance, we had Ink and Chalk factory that

was manufacturing pens, another that

was manufacturing jute and another

that was a shoe factory, but they all

collapsed overnight because of

technology and the fact that

everybody thought that these were

state-owned enterprises and so they

should be eating from them.

Mr Speaker, there are legitimate

concerns that we should raise relating

to the operations and activities and

even the administration of these state-

owned enterprises. I would want to

associate with the issue raised by one

of my Hon Colleagues who spoke

before me. I believe article 187(2) of

the 1992 Constitution of Ghana is

clear and with your permission, I beg

to quote:

(2) “The public accounts of Ghana and of all public offices, including

the courts, the central and local

government administrations, of

the Universities and public

institutions of like nature, of any

public corporation or other body

or organisation established by an

Act of Parliament shall be audited

and reported on by the Auditor-

General.”

Mr Speaker, that is the parent law

so if any statute has made any

provision that they should not come

under the purview of the Auditor-

General, then, of course, article 1(2)

of the 1992 Constitution would kick

in. With respect, I beg to quote that

for the elucidation of my Hon

Colleagues. It reads.

(2) “This Constitution shall be the supreme law of Ghana and any

other law found to be inconsistent

with any provision of this

Constitution shall to the extent of

the inconsistency, be void.”

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

Mr Speaker, even the 1992

Constitution provides that the public

corporation should come under the

scrutiny of the Auditor-General and

we are saying that a statute exist,

which provides an exemption. That

statute is null and void after the

promulgation of this 1992

Constitution. We cannot run away

from the supervision of the Auditor-

General, therefore, I do not agree

with my Hon Colleague. What is the

remit of the Committee on

Employment, Social Welfare and

State Enterprises as provided for

under Standing Order 184(1) of our

own Standing Orders? Again, with

respect to remind my Hon Colleagues

serving on the Committee, Standing

Order 184(1) reads and with your

permission, I beg to quote:

(1) “The Committee on Employment, Social Welfare

and State Enterprises,

composed of twenty

Members, shall review and

study on a continuing basis,

the operation of State

Enterprises with a view to

determining their economy

and efficiency and also deal

with matters relating to

Employment and Social

Welfare generally.”

That is the remit of the Committee

so what business do they have if it is

not a state-owned enterprise? It is a

State-owned enterprise and has been

audited and that is why Standing

Order 184 (2) then reads:

(1)“It shall also be the duty of the Committee:

(a) to examine the reports and accounts of public

enterprises…”

Mr Speaker, what Reports and

accounts are they submitting

themselves to? They are Reports

submitted by the Auditor-General.

That is the charge of the Committee,

so if they go and they tell them that

they are not under the Auditor-

General's Department, they must remind them of the imperatives of

article 187(2), so they cannot run

away. Indeed, their Report is telling

us that the Auditor-General's Department says and I quote:

“We are unable to obtain sufficient appropriate audit

evidence about the debtors and

creditors balance in the

company's statement of financial position as of 31st

December 2019.”

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

Mr Speaker, it is the Auditor-

General who under article 187,

should set the standard for companies

to present their books and submit and

if they do not conform, it is for them

to tell them that they are unable to

audit their accounts because they

have neglected to fulfil the

obligations imposed by article 187(4)

which reads:

(4) “The public accounts of

Ghana and of all other persons

or authorities referred to in

clause (2) of this article shall

be kept in such form as the

Auditor-General shall

approve.

Mr Speaker, so, the Auditor-

General sets the standard or

benchmark for industries but they

refuse to conform. The Office of the

Auditor-General should not have

anything to do with the accounts of

that institution. It is as simple as that.

Mr Speaker, so the Committee on

Employment, Social Welfare and

State Enterprises should be pushing

that they are not doing this because

the company refused to submit to the

Auditor-General and report same to

the House so that what to do would

then be enforced by this House. That

is the way to go because we cannot

deal with partially prepared reports

which are not submitted to the Office

of the Auditor-General for

consideration before it is reported to

the House. What is the business of the

company then?

Mr Speaker, so, in this regard, I

think the fault lies with us. We have

observed many deficiencies and

deficits in the performance of the

duties of GIHOC Distilleries

Company Limited. As far as

submitting to the Office of the

Auditor-General is concerned, they

have to report same to us, so that the

House would then be in the position

to deal with the matter frontally.

Mr Speaker, so, I am not too sure

that I could agree with the Committee

when they so namely submit and, in

such a very obsequious manner,

come to the House that they were not

able to produce something because

something else was not done. With

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

the greatest respect to the Committee,

that is a complete negligence of

responsibility.

Mr Speaker, I thank you for the

time being, and I guess another time

may offer itself for us to deal with this

matter.

Hon Minister for Public Enterprises,
you may kindly speak.
Minister of State, Public
Enterprises (Mr Joseph Cudjoe):
Mr Speaker, thank you for the
opportunity to comment on the
GIHOC Report before the House. I
would like to first draw the attention
of Hon Members that as it stands, the
name of the company should be
“GIHOC Distilleries Company
Limited. However, on the cover page
of the Report, I see “Ghana Industrial
Holding Company Limited”, which is
not the name of the entity as it stands
today. Hon Members' attention
should be drawn to the fact that just
as the Ghana Commercial Bank has
been incorporated as GCB Bank and
are similar entities, the GIHOC is
also now “GIHOC Distilleries
Company Limited.”
Mr Speaker, I am happy that we
have the opportunity today to
scrutinise state enterprises in turn as
it is happening now because His
Excellency the President, has had the
vision to ensure that spotlight is put
on state-owned enterprises to make
them profitable where they have been
established for commerciality, and to
make them efficient when it is
otherwise. So, from my observation
in this House, we have seen the
scrutiny brought to bear by the
enterprises at a level that has never
happened in the past. Therefore, I
commend the Committee on
Employment, Social Welfare and
State Enterprises for bringing this
Report to the House.
Mr Speaker, this is also an
opportunity to highlight the GIHOC
Distilleries Company Limited as one
of the enterprises that Ghana has
pursued in the past and currently
pursues to fill in the space of what we
would say, “produce made-in-Ghana
goods” for our consumption and
potentially for export. In recent days,
the import driven economy has been
highlighted, and I think we should
commend the GIHOC Distilleries

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

Company Limited for what they are

doing.

Mr Speaker, I would like to take

the opportunity to highlight some of

the products which we all know are in

the market and are competing very

well with imported products in our

market space. The GIHOC

Distilleries Company Limited holds

brands like the popular Mandingo,

Herb Afrik, Takai, Castle Bridge.

And it now also has Meridian Water

on the market. These are all made-in-

Ghana goods that we should all make

efforts to patronise. Hotels,

especially international hotels stock a

lot of foreign alcoholic beverages

which are not good for us. So, we

should all support the GIHOC

Distilleries Company Limited and

penetrate that market.

Mr Speaker, on the issue of

employees, kindly permit me to say

that in 2016, the GIHOC Distilleries

Company Limited had about 169

employees but has 552 employees

today. I know for the information of

the House that when the company

had 169 employees, the employees

were not really productive. Some of

the workers were being paid

GH₵300.00 and GH₵250.00 as

salaries, and they were idle, until the

management of the industry changed

and established a Business

Development Unit, beefed up the

Marketing and Sales Unit, and started

doing a lot of marketing of the

products of the company, positioning

it very well on the market today.

Mr Speaker, so, I would like to say

that today, the 552 employees have

positioned the company to be poised

to even look at external markets. The

GIHOC Distilleries Company

Limited is looking beyond the

borders of Ghana as we speak, and I

would like to say that the House

should support this effort.

Mr Speaker, we would note that

looking at the name of the

Committee, I am not sure that the

word “Employment” in the phrase

“Committee on Employment, Social

Welfare and State Enterprises”

means that we should check that

employment goes down; we are

rather to check that state enterprises

give more employment opportunities.

The caveat is that they should be

Audited Financial Statement of the GIHOC Distilleries for 2019 and 2020

profitable, growing, and in my view,

pay employees well because a

country that does not pay its

employees very well only ends up

creating continuity to poverty. So,

when the Committee notes that the

employment of the GIHOC

Distilleries Company Limited is

increasing, I think that it should be a

case of applauding the company for

contributing to employment and not

contributing to unemployment. So, I

would like to draw the attention of the

Committee to that.

Mr Speaker, the GIHOC Distilleries

Company Limited is positioned today

to be listed on the stock market. The

company has all the elements that are

required for a company to be listed on

the stock market, because for the past

four or five years, the company has

been positioned to qualify to be listed

on the stock market. Their audited

accounts are up to date as the Report

indicates. So, we should look forward

to buying shares of the GIHOC

Distilleries Company Limited, and be

able to capitalise it to take the

opportunities available to the

company.

Mr Speaker, thank you for the

opportunity to contribute to the

debate on the Motion.

Question put and Motion agreed

to.

Hon Members, we would now move
on to Statements. We have two
Statements. We were supposed to do
one yesterday.

Mr Speaker, I
thank you very much.
I rise today to deliver a Statement
on International Day to end impunity
for crimes against journalists.
Mr Speaker, the 1992 Republican
Constitution guarantees freedom and
independence of the media in article
162(1). The mass media exist to
inform, educate and entertain the
public on issues of public interest.

Statements

Journalists and other practitioners

accordingly should have the freedom

to publish whatever, subject to the

relevant laws, they deem fit.

Impunity for crimes against

journalists is a major concern around

the world. It is for this reason that the

United Nations General Assembly, at

its 68th Session in 2013, declared 2nd

November as the "International Day

to End Impunity for Crimes against

Journalists". This was done in

memory of two French journalists

who were killed in Mali in 2013.

Mr Speaker, in Ghana, many

journalists have suffered attacks and

have gone through excruciating pain

over the years, and the impunity for

crimes against journalists continues

unabated. What is more worrying is

the fact that, invariably, the victims

of such crimes do not get justice

largely because of the lack of

financial wherewithal to pursue legal

action against their perpetrators. In

other instances, they do not have the

means to even seek medical

treatment.

Mr Speaker, when we talk about

attacks against journalists, the

unfortunate killing of Ahmed Suale

comes to mind. Almost four years

after the investigative journalist was

killed on January 16, 2019, the

perpetrators are yet to be brought to

justice. One cannot also gloss over

the gruesome killing of the Ashanti

Regional Chairman of the Ghana

Journalists Association (GJA);

almost 10 years ago. The people

involved in the killing have as of yet

not been found out. Journalism is not

a crime, and the lives of journalists

are important to us.

Mr Speaker, the unfortunate

attacks on journalists in the country,

are some of the major reasons Ghana

has dropped in the World Press

Freedom Index compiled by

Rapporteur Sans Frontiers (Reporters

Without Borders), falling 30 places in

the ranking to the 60th position.

Mr Speaker, the combined effect

of the spate of attacks and the

rampant arrests of journalists, as well

as the backsliding of Ghana in the

World Press Freedom Index, send

worrying signals, especially to

international media watchers who

still regard Ghana as a reference point

for press freedom and democracy in

Africa. Ghana must be seen to be

working hard to reclaim her position

on the World Press Freedom Index.

We must not fall further behind in the

Statements

league table of free media systems in

Africa and the world.

Mr Speaker, as we mark the

International Day to End Impunity

for Crimes against Journalists today,

I believe it is the wish of the Ghana

Journalists Association (GJA) to

entreat Parliament to help in any way

possible, to ensure that media

practitioners go about their duties

without fear or favour. This can be

achieved by ensuring the safety and

security of media practitioners, and

by giving them all the necessary

support they need to do their job.

Mr Speaker, I have been in touch

with the GJA and I believe that on

such a day the GJA would want to

restate their solidarity with all

journalists who have fallen victim to

attacks and arrests in their line of

duty, and assure them and Ghanaians

in general that the GJA will continue

to pursue justice for them and also

defend press freedom at all times.

Parliament may also want to assure

the media practitioners that they shall

stand shoulder to shoulder with them.

Mr Speaker, I believe that

Parliament is enjoined by the

provisions of article 12 of the 1992

Constitution to uphold the

fundamental human rights and

freedoms, which include the rights of

journalists to practice their profession

in peace and in a serene environment,

as enshrined in the 1992 Fourth

Republican Constitution.

Mr Speaker, I thank you very

much for this opportunity to deliver

this Statement.

Very well.
Hon Members, I would only invite
two contributors from each Side and
that would include Leadership.
Yes, Hon Member for Wa Central
.
Dr Abdul-Rashid Hassan
Pelpuo (NDC —Wa Central): Mr Speaker, let me first start by thanking
the Hon Member who made the
Statement for his thoughtfulness and
determination to get this matter clear
in the minds of all of us that
journalists are not our enemies but
rather, they are our friends, and they
help in the development of the State.
They are considered the fourth estate
of the realm and they should be
supported in whatever they do. They
contribute to the health and
development of the State by touching

Statements

on the conscience of the people

whenever it matters.

So, for a democracy like ours

which is exemplary in the world and

Africa, we need to have a different

approach to how we handle

journalists. The situation as he

recounted in which some journalists

were hurt, some missing, and some

killed obviously show that we have a

long gap to close in the way we

handle our journalists and in the way

we handle information flow. So, I

want to use this opportunity to edge

all of us, all Ghanaians, to see the

enterprise as a key factor in

determining how we monitor our

development. This is because

individuals, when left alone, can do

all the worst things we can imagine in

the world, but individuals when they

are watched and reported on, are very

careful in how they handle their own

affairs and indeed, how they handle

the affairs of the State.

So, these are people who have

volunteered on their own; many of

them are not paid. They are public-

private citizens working for the State

and working for themselves — exposing the ills of the land and

extolling the goodness of our people.

These are people whom we should

hold in high regard and not look at

them with disrespect and hatefulness

to the extent that we sometimes hurt

them, even to the extent of taking

their lives.

Mr Speaker, the Hon Member who

made the Statement has said other

things, but I am more interested in the

fact that we need to work on the

situation where as a nation seen as the

oasis of peace, we should, despite the

challenges we are facing in our

development strides, make sure we

take the first stride in handling our

journalists to the point that they can

be comfortable being here and Ghana

can be a source of educating others so

that in the end, we would have our

journalists live in peace and our

people glory in having them live with

us.

Mr Speaker, with these few words,

I thank the Hon Member who made

the Statement once again.

Yes, let me come to Hon Member for
Abuakwa South.
Mr Samuel Atta Akyea (NPP —
Abuakwa South): Mr Speaker, I thank you for this very important occasion, in which we are trying to

Statements

extol press freedom and the importance of journalism in the realm.

Mr Speaker, let us make a very

strong statement to the effect that by the tenets of the 1992 Constitution, we have press freedom in no uncertain terms and if we pay regard to article 162(1), it is clear and it provides as follows:

“Freedom and independence of the media are hereby guaranteed.”

That is a strong democratic driver

because if we have a so called democracy - in fact, they are called the fourth estate of the realm, and if they cannot express themselves in trying to hold the Government accountable, what a poor democracy it would be without the dimension of journalism and by extension, the services of a journalist.

Mr Speaker, if we even pay regard

to the body that is supposed to superintend the affairs of the media, which is the National Media Commission, article 173 of the Constitution is clear that they do not have control over journalists and how they function. May I quote with respect;

“Subject to article 167 of this Constitution, the National Media

Commission shall not exercise any

control or direction over the

professional functions of a person

engaged in the production of

newspapers or any other means of

communication.”

It seems to me that by the spirit of

the 1992 Constitution, journalism is

not feted in anyway and they have the

freedom to practice their trade.

Mr Speaker, one other issue of

consequence is that it should not cost

you any money to establish a media

house or outlet in terms of licensing

and the rest of them - that is article

162(3).

“There shall be no impediments to the establishment of private press

or media and in particular, there

shall be no law requiring any

person to obtain a licence as a

prerequisite to the establishment

or operation of a newspaper,

journal or any other media for

mass communication or

information.”

Mr Speaker, I believe that any set

of freedoms that are elastic in its

nature can also be a problem and as a

Statements

lawyer, I am concerned about the

laws of defamation, which is to say

that the Constitution never envisaged

that we would have an elastic right

without any boundaries of decency

when it comes to the dignity and

reputation of other people. I have had

serious issues of prosecuting

defamation cases and because the

Constitution says that one can just

establish a newspaper outlet without

paying for it, we have all manner of

newspapers mushrooming and they

write whatever they want to write. In

fact, they could so write about a

person to demonise him or her; and

not everybody wants to waste his or

her time in court - a few people are determined to save their names so

they go to court and defend

themselves.

Mr Speaker, guess what, after a

person has won a defamation suit and

wants to go into execution, that is to

say, have the fruit of the judgement,

he or she only finds a typewriter, not

even a computer, in some obscure

corner somewhere — [Interruption]—

It is a fairy victory; he or she went to

court for nothing because the one who

did the defaming had nothing to his

name - that is the little challenge we

have about some levels of journalism

that should not be permitted. In fact,

the Criminal Libel Law was repealed

- that is to say, in those days, if

somebody wrote very ugly and

terrible things about another person

with the criminal intent to injure his

reputation, he could go to jail. While

we were pushing the frontiers of

freedom, we said that the Criminal

Libel Law should be repealed and it

was so repealed. I am tempted to

believe that when most journalists

realised that they could not be

punished in the criminal realm by

going to jail, they were freed with the

impunity to defame others.

Mr Speaker, I am of the view that

insofar as they are the fourth estate of

the realm, let us come to terms with

the fact that every level of freedom

has boundaries of decency. After all,

when a person's name is defamed and

even have victory in court, a few

people will remember that he or she

has won the victory but the internet

will still say in this or that person's

past, they were associated with some

kind of funny thing, especially when

he or she is a journalist. As a matter

of fact, we are the raw materials of

the journalist; they would not go and

research on anything of consequence

apart from trying to find filth

concerning politicians.

Statements

Mr Speaker, I celebrate the day

and I am grateful to my Hon

Colleague who put together this very

seminal speech on the occasion of

World Day of Journalism, but I beg

to suggest and I believe firmly that in

trying to ply their trade and to make

some money, they should be careful

of the reputation of others because

money cannot buy the reputation of

somebody. It could be a hard and

long fight in the kind of theatre we

find ourselves. If somebody says that

he has been a Member of Parliament

for three terms and there is no filth on

him - it is a serious fight to preserve

one's dignity in the midst of this

witchcraft exercise called politics.

Mr Speaker, I am grateful for the

opportunity.

Yes, Hon Minority Leader?
Minority Leader (Mr Haruna
Iddrisu): Mr Speaker, let me thank
you very much for the opportunity
and more graciously, let me thank the
Member of Parliament for Manhyia
North, Mr Akwasi Konadu, for his
Statement on the International Day to
End Impunity for Crimes Against
Journalists.
Mr Speaker, as observed by the
Chairman of the Committee on
Energy, in Ghana, there is unfettered
freedom and respect for the right and
independence of all media
practitioners. Today must give
journalists themselves an opportunity
to evaluate their own performance.
Their contribution to our functional
democracy and collective quest to
achieve sustainable development
goals. As reported by the United
Nations (UN) Secretary-General,
some 70 journalists have been killed
this year in the course of their work
and in the course of duty of
contributing to a more enlightened
world.
Mr Speaker, while we hail Ghana
for providing the opportunities — even going beyond the frontiers of
article 162 and 167 of the 1992
Constitution. In Ghana today, there
are as many FM stations as there are
television stations that are giving the
opportunity to vent expressions. So,
the wheels of freedom are rolling but
as observed by him in the second
paragraph, we demand justice to the
killing of Ahmed Suale and therefore,
whatever investigative or
prosecutorial body is handling this
matter must discharge this
responsibility with some credibility

Statements

to give assurance to practising

journalists that they will not just

wither away their lives in the service,

and then, when they die unnatural

deaths, there is nothing by way of

support even for the family - no compensation for them. But more

importantly, the circumstance

associated with the death itself raises

eyebrows and I think it is important

we celebrate and commend the

Ghana Journalists Association and to

urge them - what we need is the commitment of government to

continue to respect those freedoms.

Mr Speaker, I recall what is

popularly described as the Windhoek

Declaration on ensuring and

promoting media pluralism. In

Ghana, three issues get my attention

as we observe this day. I still believe

that Ghana needs a new Broadcasting

Bill or law to regulate broadcasting

generally in Ghana.

As we speak today, the Ghana

Broadcasting Corporation (GBC) say

they are state broadcasters in the

morning and public broadcasters in

the evening. We need a law that

would situate GBC as a public

broadcaster akin to what we have,

like the British Broadcasting

Corporation (BBC) of the United

Kingdom. We need to define the

parameters, so that we know the

difference between a state

broadcaster, a public broadcaster, a

commercial broadcaster, and a

community-related broadcaster. In

Ghana, no parameters are drawn and

we need to get that.

Finally, Mr Speaker, as Mr

Samuel Atta Akyea had observed

about unregulated social media and

its relationship with rights and

freedoms and more importantly, on

reputation. Today, anything can be

published about anybody, and by the

time one redeems their reputation, it

is already in tatters, yet we have no

law in Ghana that regulates content

within the social media environment,

and it has become a toxic source of

misinformation and disinformation.

Probably, we need to reflect on it.

Mr Speaker, let me once again

commend the Hon Member who

made the Statement, and we all

commit including this Parliament to

contribute to end impunity for crimes

against journalists, and we all must

make solid commitments to support

the media to practice freely to

Statements

contribute to our democracy and to

observe those freedoms.

However, undoubtedly as

observed by Mr Samuel Atta Akyea,

Ghana is comparable even to the

United States of America and the

United Kingdom when it comes to

access to media space for freedom of

expression. Again, Mr Speaker, every

day in the morning, my observation is

that, we spend too much time talking

than working and acting in the

country. Every other day, in the

morning, one would hear

commentary on every subject, people

expressing their knowledge on every

subject — [Laughter] -- So, Mr Speaker, we need to find a way to

regulate the social media

environment. This is because as I

have observed, it is becoming a major

source of misinformation and

disinformation that can affect the

reputations of people.

Mr Speaker, I thank you and I

thank the Hon Member who made the

Statement.

Very well.
Hon Majority Leader, may we
hear you.
Majority Leader (Mr Osei Kyei-
Mensah-Bonsu): Mr Speaker, I also
fully associate myself with the
Statement made by Mr Akwasi
Konadu, the Hon Member of
Parliament for Manhyia North on this
day for the observation of the
International Day to End Impunity on
Crimes against Journalists.
Mr Speaker, I believe this is a very
well-researched and well-balanced
Statement. The Hon Minority Leader,
in relating to the Statement, chose to
centre his submission on the
unfortunate killing of Mr Ahmed
Suale. Mr Speaker, it is a scar on the
conscience of this country and I think
he is right to refer to it.
However, the Hon Member
mentioned some other persons. Ten
years ago, the President of the Ghana
Journalist Association (GJA) in the
Ashanti Region was also murdered in
similar circumstances; his life should
matter to us as well, or is it because
one happened in a particular region
so it has now become the postage
stamp, the other happened in another
region so that one should not be
spoken about? We should be
balanced in these matters. Otherwise
it is made to appear as if this
happened under the New Patriotic

Statements

Party (NPP), so let us glorify it; this

happened under the National

Democratic Congress (NDC) so let us

keep quiet about it. In both cases,

lives of journalists were involved and

the life of these two persons should

matter to us.

Mr Speaker, we have travelled

some distance in the practice of our

democracy. Times were, when even

editors of newspapers were haunted.

I remember about 30 years ago when

a catholic priest was chased; people

thought he was the Editor of the

Catholic Standard Newspaper. He

was brutalised, killed, and thrown

into the sea. At the time, the Editor of

the Catholic Standard Newspaper

was Most Rev Palmer Buckle and

they thought because that man so

much resembled Most Rev Palmer

Buckle, they killed him and threw his

body into the sea.

Mr Speaker, I witnessed a female

journalist in Kumasi who was

descended upon by armed soldiers

and brutalised for taking pictures

during the 2000 elections. So, Mr

Speaker, we have travelled some

distance. However, there are some

developments that should not escape

the eyes of any objective analyst, and

I guess that is what this Statement is

speaking to.

Mr Speaker, the Media

Commission that is charged to

regulate the conduct of media

practitioners as captured under article

167 of our 1992 Constitution which

provides and perhaps I should read:

“The functions of the National Media Commission are —

(a) to promote and ensure the freedom and independence of

the media for mass

communication or information.

(b) to take appropriate measures

to ensure the establishment

and maintenance of the

highest journalistic

standards in the mass media,

including the investigation,

mediation, and settlement of

complaints made against or

by the press or other mass

media”.

Mr Speaker, the Mass Media

Commission, regardless of their

intentions, are toothless in trying to

call media practitioners who stray to

order. We need the media but the

media should not also assume

Statements

positions that are otherwise abhorrent

to our society. These days, anybody

who has a microphone before him or

her believes that he or she has the

power to descend on any person in

this country. When they are called to

order, they refuse to submit. Mr

Speaker, some media persons in this

country are coming under these

characterisations; every morning,

they have one person to attack, and

they would tear the person into

shreds; they have no evidence and

when complains are sent to the Media

Commission, they have no evidence.

When these persons are asked to

apologise to the person they attack

and retract it, they refuse to do that.

In the meantime, he or she has torn

one's hard-earned image into shreds.

So, Mr Speaker, I think there

should be counter-balance and if we

have to amend the Constitution to

bring some of them under control, so

be it. People should have the freedom

and indeed, the 1992 Constitution in

article 162 (1) provides that unfitted

freedom:

“Freedom and independence of the media are hereby guaranteed”

Mr Speaker, the media assists us

in Parliament to ensure responsibility

and accountability of the

Government of the people of this

country. So, in that regard, the media

should be partners of Parliament;

they should be our allies in

prosecuting the agenda of

transparency and accountability.

When some of them stray and indeed

fall foul of the law, we would like to

encourage them to realign and they

openly refuse, that certainly can be

challenging. I would like to urge the

media practitioners to use this

occasion to do serious introspection

to call those of them who are falling

foul to the law on daily basis to order.

The Hon Minority Leader raised a very interesting issue: people engage in talking every morning and spend more time talking than working. I guess it means to engage in productive ventures. Mr Speaker, social commentary is allowed everywhere, but Ghana is in a unique situation. A journalist publishes something, and instead of allowing people with the relevant competence to comment on what has been written, the journalists themselves go to radio stations, and lend credence to what they have written. What does this obtain? It is like they would want to fill in the gaps, to continue on radio

Statements

or television stations what they could not write in their papers that day.

Mr Speaker, this situation does not

exist anywhere. If a journalist publishes something, it should lend itself to criticisms or evaluation by people with the relevant competencies. Where we have people, as the Hon Minority Leader stated, who claim to know from A to Z on every subject matter, it is certainly unacceptable, and they want to foist their own ideas on society and set the agenda on daily basis for this country. That cannot be acceptable.

If journalists write or publish, they

should allow people with the relevant competencies also assess what they have written. I think that is what obtains everywhere. Let us do serious introspection. I keep saying that I am no angel; I fall foul of the law sometimes. I lend myself to criticism. We criticise ourselves to reform society; we do not criticise to destroy, as some of them have made the penchant to doing on a daily basis.

Mr Speaker, this should be a day

for introspection. What has been done to some practising journalists is abhorrent; the society should rise in unison to condemn it, but what some of the journalists do to society and

individuals should equally be critiqued so that we can grow together as a society and one people in one country with a common destiny as General Acheampong used to say.

Mr Speaker, I thank you very

much.

Hon Members, thank you very much.
We would take the second Statement
from Dr Mark Nawaane on “The Need to Manufacture Our Own
Vaccines”. Hon Member, let us hear you.

Mr Speaker,
thank you very much for the
opportunity to contribute to the
Statement made by the Hon Deputy
Ranking Member on the Committee
on Health.
Mr Speaker, the worrying effect
for us now would be in the year 2027
when Ghana would be out of GAVI,

Statements

and we would have to go to the

international market to fight for

vaccines for our early childhood

immunisation programmes and

others. We cannot afford, however, to

go out there and buy them at the

commercial rates because that would

affect the process to get our children

immunised, and we cannot afford

that. Mr Speaker, it, therefore, falls

on us, as we abound in expertise in

production and manufacturing in

Ghana. COVID-19 has taught us that

vaccines, in essence, medicine for

protection, could become a

geopolitical tool, which we need not

be part in the centre of play.

Mr Speaker, while we advocate

for self-reliance in almost everything

that we do to strengthen our nation

and its economy, it is my sole wish

that we expedite action in the area of

vaccines. It is of great concern and

interest, as well as a commendation to

the Government, that a seed money of

US$25 million has been set aside for

the establishment of a Vaccine

Institute. Based on that, a study tour

was conducted by GIZ for Hon

Members of the Committee on Health

to have an oversight and first-hand

information on how this production,

both upstream and downstream, of

vaccines are done. Mr Speaker, with

the knowledge so acquired, and the

Bill brought to the Committee, I

would urge the House to expedite

action on the passage of this Bill into

an Act, so that it would afford us the

opportunity to have a well-regulated

environment for the production of

vaccines to aid in that direction.

Mr Speaker, while speaking on

that, because we would need to have

a regulatory framework that would be

strong enough to monitor the

processes of these vaccine

production, it will call for the

strengthening of some agencies like

the FDA and the Ghana Standards

Authority (GSA), so that they would

have the needed capacity to do their

monitoring of all of these vaccines,

which is a specialised area. It will call

for them to have enough resources to

train themselves and have the needed

equipment to perform that duty and

function. However, if it is possible,

we advocate for the decapping of

these institutions, so that the retention

of their internally generated funds

(IGFs) and the monies that go to them

could be used in that direction to

improve upon these expertise and

equipment that they would probably

need.

Statements

Mr Speaker, on that call, I would

also want to, again, commend the

Hon Member who made this

Statement, and I would add my voice

to that of the House and plead that we

back the production of vaccines for

our country and its economy. Thank

you very much.

Dr Sebastian Ngmenenso Sandaare

(NDC — Daffiama/Bussie/Issa): Mr

Speaker, thank you for the

opportunity to contribute to the

Statement made by Dr Mark Kurt

Nawaane, the Hon Member for

Nabdam Constituency, on the need

for Ghana to produce vaccines.

Mr Speaker, this is a very

important Statement made by the

Hon Member. Indeed, man has

fought infectious diseases for

centuries, and it is critical and very

clear that we cannot do without the

capacity and ability to have vaccines

that will enable us fight these

infectious, emerging and re-emerging

diseases like Ebola, COVID-19, and

new ones that are yet to come up

against mankind.

Mr Speaker, over the years,

through our robust immunisation

programme, Ghana has been able to

fight diseases like polio, yellow fever

and meningitis. It even had the ability

to fight COVID-19 and the rest. So,

the desire and the need to develop our

own vaccines would add up and boost

our fight against infectious diseases.

In fact, evidence from the World

Health Organisation (WHO) is that,

currently, through the use of vaccines

for immunisations, about 3.5 to 5

million deaths are prevented every

year because of this powerful tool of

vaccines.

Mr Speaker, the need for Ghana

and Africa to develop its own

vaccines has been long overdue

because we have the human resource.

There are experts in Ghana as well as

available institutions such as the

FDA, Noguchi Medical Research

Institute, and other bodies that we

could fall on to develop our own

vaccines. However, the problem or

the major challenge has been funding

and like the Hon Member who made

it the Statement has made clear, that

is the area we have to look at as a

nation to provide the needed adequate

funding that will enable experts and

institutions to develop our own

vaccines.

Statements

Mr Speaker, as an Hon Member of

the Committee on Health, I was part

of the Hon Members that were in a

stakeholder discussion on the process

of developing vaccines in the country

— where we had the Vaccine Manufacturing Committee. I made a

comment because when I looked at

the list, I thought that it was not

comprehensive and inclusive enough.

I cautioned against the use of a part of

the experts in Ghana and partisanship

in the membership because such a

body that would provide vaccines

would have to be holistic. Therefore,

the membership would have to look

at the totality of experts we have in

Ghana, devoid of partisanship and

political coloration, so that we know

that the Vaccine Institute that this

country will come out with would be

would be sustainable.

It should not be that, maybe, one

party in power chooses its members

as experts, then another political

party comes and thinks that they

should relook at the membership. I

cautioned against that seriously and

said that we are all for it; we are all

happy about the need for an

institution or a body that would help

us produce our own vaccines. But we

should be cautious and really ensure

that we have a sustainable institution

that can give us the needed vaccine

that we need and, of course, the Bill

that is yet to come to Parliament, I

hope that we take the needed steps

with speed and ensure that when it

comes to this House, we will not say

it is urgent, so we will just pass it

anyhow, but we will take time to go

through, scrutinise it and ensure that

the law for the development of the

vaccines is good.

Mr Speaker, I would also want to

commend the Hon Member who

made the Statement and to say that it

is good as a country to develop our

own vaccines and add to the world

bodies' ability to produce vaccines because if one takes institutions like

Gavi and others that help us to get

vaccines, we know, and it is very

clear that, in this economic times, a

day would come when they would

not be able to help us, and we would

have to depend on our own capacity

and financial muscle to have our

vaccines.

Mr Speaker, I thank you very

much for giving me the opportunity

to contribute to this very important

Statement.

Statements

Thank you very much.
Yes, Hon Member for Ablekuma
North, kindly conclude the
contributions for us.

Mr Speaker,
thank you very much.
Mr Speaker, I would also want to
commend the Hon Member who
made the Statement for presenting
something we all believe is so
important. If COVID-19 taught us
anything, it is for us to be self-reliant
as far as medicine is concerned, and
we all know that a healthy nation is a
wealthy nation. As a nation, we must
be self-reliant and be able to depend
on ourselves, especially when there is
crisis like we saw during the COVID-19.
Mr Speaker, I am happy to hear
that the Committee on Health has
done a lot of work with the Bill that
has been presented to it, and it will
soon be presented to the House. The
Vaccine Institute Bill has been
worked on with the Ministry, and it
will soon be presented to the House.
It is important for us to invest in
ourselves. The manufacturing of
vaccines from those that are needed
in childhood to those needed to
prevent threats to the national
security, just as we saw during the
COVID-19 - Sometimes, investing
in what we know will help the nation
in healthcare is something that we all
believe is so critical.
Mr Speaker, I would like to also
suggest that when Government is
making its investment and budget this
year, there should be necessary
consideration made to invest in the
Institute, so that we would get the
benefits out of it. I believe that we
have the ability and capacity to
manufacture vaccines that are
necessary for life. This is just to add
my voice to what has been said
already and also to commend the Hon
Member who made the Statement.

Thank you very much, Hon Sheila
Bartels.
This brings us to the end of
Statement time; we thank the makers,
as well as all the contributors, for the
two important Statements. I think

Statements

they are very important Statements

for the country's development.

On that note, may I respectfully

come to the Leadership for any

indication?

Second Deputy Majority Chief

Whip (Ms Lydia Seyram Alhassan):

Mr Speaker, we have exhausted the

Business scheduled for the day. I,

therefore, move that we adjourn till

tomorrow at 10.00 a.m.

Minority Leader (Mr Haruna

Iddrisu): Mr Speaker, I second the

Motion for adjournment.

Question put and Motion agreed

to.