Please
proceed.
Mr Frank Annoh-Dompreh on
behalf of the Chairman of the
Committee: Mr Speaker, I beg to second
the Motion moved by the Hon Deputy
Minister for Trade and Industry, and in
so doing present the Committee's Report. Let the Hansard capture the
entirety of the Report.
1.0. Introduction
11. The Ghana Accreditation Service
Bill, 2023 was presented and read for the
first time in the House on Tuesday, 6th
June, 2023 by the Minister responsible
for Trade and Industry, Hon Kobina
Tahir Hammond, in accordance with
article 106 (1) of the 1992 Constitution.
Pursuant to Order 159 of the Standing
Orders of Parliament, the Rt Hon
Speaker, on the request of the Minister
for the Bill to be taken under the
certificate of urgency, referred the Bill to
the Select Committee on Trade, Industry
and Tourism and Leadership of the
Committee on Constitutional, Legal and
Parliamentary Affairs to determine the
urgency or otherwise of the Bill and
report to the House.
2.0. Urgency of the Bill
2.1. The Committee subsequently,
determined and certified that the Bill is
of an urgent nature and may therefore, be
taken through all the stages of passage in
one day in accordance with article 106
(13) of the 1992 Constitution and Order
119 of the Standing Orders of the House.
On the 8th June, 2023, the Committee
presented a Report on the urgency of the
Bill to the House, and the Report was
adopted.
3.0. Deliberations
3.1. The Committee first held
Stakeholders meeting on Thursday, 15th
June, 2023. The Committee further met
from 20th to 21st and considered the Bill.
Present at the meetings were officials
from the Ministry of Trade and Industry
led by the Deputy Minister, Ms Nana
Ama Dokua Asiamah-Adjei on behalf of
the Minister. Other participants included
officials from the Attorney-General's
Department, representatives of the
Ghana Standard Authority (GSA),
Health Facilities Regulatory Authority
(HeFRA), Cyber Security Authority
(CSA) and National Petroleum Authority
(NPA).
The Committee is grateful to the
Ministry and other officials for their
invaluable inputs.
4.0. References
The Committee referred to and was
guided by the following documents inter
alia during its deliberations on the Bill:
i. The 1992 Constitution of the
Republic of Ghana;
ii. The Standing Orders of the
Parliament of Ghana;
Ghana Accreditation Service Bill, 2023 — Second Reading
iii. Interpretation Act, 2009 (Act
792);
iv. Ghana Standard Authority Act,
2022 (Act1078);
v. Trade Policy (2005 to 2009); and
vi. Industrial Policy (2011 to 2015)
5.0. Background
5.1. The need to establish an
accreditation body was initially
prescribed in the Trade Policy (2005 to
2009) and the Industrial Policy (2011 to
2015). Subsequently, the Ghana National
Accreditation Service (GhaNAS) was
established by the Ministry of Trade and
Industry as a company limited by
guarantee under the then Companies Act,
1963 (Act 179) and became operational
in September, 2018.
5.2. The establishment of GhaNAS
emanated from the country's need for an
internationally recognised national
accreditation system as a crucial element
of a well-functioning quality infrastructure
aligned with international best practices.
Further, GhaNAS was established to
ensure that the accreditation system
supports the needs of Ghanaian
enterprises competing in a fast-paced
global economy and ensures support for
public policy objectives in terms of
health and safety of citizens of the
country and the protection of the
environment.
5.3. Prior to the establishment of
GhaNAS in 2018, public and private
conformity assessment bodies seeking
international recognition through
accreditation turned to foreign
accreditation bodies for accreditation for
which the conformity assessment bodies
paid exorbitant fees.
This also led to the transfer of the
already scarce foreign exchange out of
the country.
5.4. As the national accreditation
body, the GhaNAS has been responsible
for the independent attestation of the
technical capabilities of conformity
assessment service providers in line with
international standards and in
accordance with requirements detailed in
World Trade Organisation (WTO)
Agreements on Technical Barriers to
Trade (TBT), International Accreditation
Forum (IAF), International Laboratory
Accreditation Cooperation (ILAC),
African Accreditation Cooperation
(AFRAC) and others.
5.5. In April 2022, the country
adopted a National Quality Policy which
prescribed the development and
promulgation of legislation to regulate
conformity assessment activities and
establish a national accreditation body.
5.6. It is imperative that a credible
Quality Infrastructure in terms of
standardisation, accreditation, conformity
assessment, and metrology is firmly in
place to assure markets of Ghana's
adherence to international standards and
a national accreditation body is the
central pillar of that assurance.
5.7. The Bill forms part of the
Government's commitment to ensuring
Ghana Accreditation Service Bill, 2023 — Second Reading
that consumers of goods and services are
protected in accordance with clause 9 of
Article 36 of the 1992 Constitution
which provides that “The State shall take appropriate measures needed to protect
and safeguard the national environment
for posterity; and shall seek co-operation
with other states and bodies for purposes
of protecting the wider international
environment for mankind.
5.8. Further, the establishment of the
Ghana Accreditation Service will also
ensure that accreditation bodies,
inspection bodies, calibration or testing
laboratories and other conformity
assessment bodies meet established
standards that will enable them to
provide services that are credible,
reliable, and independent.
6.0. Object of the Bill
6.1. The object of the Bill is to
establish the Ghana Accreditation
Service to provide for an efficient and
effective accreditation system for the
accreditation of conformity assessment.
7.0. Highlights of the Bill
7.1. The Bill contains a total of fifty-
nine (59) clauses.
7.2. Clause 1 deals with the
application of the Bill. The Bill applies
to the accreditation of conformity
assessment bodies such as calibration
laboratories, testing laboratories;
validation bodies, verification bodies;
certification bodies, inspection bodies;
rating agencies; and any other body
determined by the Minister and or by
Executive Instrument.
7.3. Clauses 2 to 5 provide for the
establishment of the Ghana
Accreditation Service, the object of the
Bill, functions, and membership.
7.4. Clauses 6 to 17 provide for the
composition of the membership of the
governing body of the Ghana
Accreditation Service, the duties, tenure
of office of the members, meetings,
disclosure of interest, establishment of
sub-committees of the governing body,
allowances, adherence to policy
directives of the Minister, establishment
of Accreditation Committee, functions
of the Accreditation Committee and
establishment of sub-committees of the
Accreditation Committee.
7.5. Clauses 18 to 25 deal with the
appointment and functions of the
Director-General, the appointment, and
functions of the Deputy-Director
General, the appointment of other staff,
the creation of divisions, directorates,
and units, and establishment of Regional
offices of the Service and Internal Audit
Unit.
7.6. Clauses 26 to 31 provide for
financial matters including sources of
funds of the Service, opening of a Bank
account, borrowing powers, accounts,
and audits; and annual reports to comply
with relevant laws.
7.7. Clauses 32 to 34 deal with
matters of accreditation schemes
including the establishment of the
accreditation schemes, mandatory
Ghana Accreditation Service Bill, 2023 — Second Reading
accreditation of conformity assessment
activities, and compliance with
mandatory accreditation.
7.8. Clauses 35 to 47 provide for
licensing, and requirements for
accreditation. Application for license to
use accreditation symbol, consideration
of the application, grant of licence,
validity, and duration of licence, non-
transferability of licence, extension of
scope of accreditation, suspension of
licence, reduction of scope or withdrawal
of licence, appeal against decisions of the
Service, register of licence, indemnity
and restrictions on the use certain words.
7.9. Miscellaneous dealt with in
clauses 48 to 59 and makes provisions
scheme of service, confidentiality,
impartiality in the performance of
assigned functions under the Act,
administrative penalties, offences,
custody and use of common seal,
Regulations and Interpretation, Repeal,
transitional provisions, dissolution, and
savings.
8.0. Observation
8.1. Concerns of Stakeholders
8.1.1. Concerns were expressed by
some stakeholders including the Ghana
Standard Authority (GSA) and Health
Facilities Regularity Authority (HeFRA)
in relation to the scope of the mandate of
Ghana Accreditation Service when
established. In the view of the concerned
stakeholders, extending the scope of the
mandate of the Ghana Accreditation
Service beyond the third-party
accreditation, to include monitoring of
the activities of the conformity
assessment bodies is likely to result in
duplication of functions, increase the
cost of doing business and create
potential conflicts with some existing
Regulatory Agencies.
For instance, under Ghana Standard
Authority Act, 2022 (Act 1078), GSA is
mandated to carry out conformity
assessment activities. GSA further
argues that it is well positioned to carry
out this conformity assessment
considering the reference laboratories
GSA has constructed, in addition to the
cumulative wealth of experience and
competence in conformity assessment
(testing, inspection, and certification).
8.1.2. The Ministry, however,
explained that the best practice requires
that all the Pillars of Quality
Infrastructure (Standardisation, Metrology,
Conformity, Assessment, and
Accreditation) should be independent.
Accordingly, the Ministry has decided to
transfer the monitoring role of GSA for
conformity assessment role as currently
contains in Act 1078, and place it under
Ghana Accreditation Service, whiles the
Ministry takes steps to develop other
Quality Infrastructure Bodies. The role
of GSA will thus be limited to
standardisation. HeFRA on the other
hand, will remain and monitor
compliance to standards by the health
facilities in Ghana.
8.2. High Cost of foreign accreditation
8.2.1. The Committee was informed
that the average minimum cost of foreign
accreditation services including
Ghana Accreditation Service Bill, 2023 — Second Reading
preparatory work and travel expenses of
foreign consultants, is approximately
US$120,000, exclusive of the cost of
maintenance assessments and re-
assessments. The prohibitively high cost
of foreign accreditation services and
expertise has been a major disincentive
for the conformity assessment bodies to
seek accreditation services for their
activities. This has negatively affected
their ability to remain internationally
competitive for their business.
8.2.2. The Committee was, however,
delighted to note that the same range of
accreditation services to be provided
locally will cost about US$ 50,000 when
the Ghana Accreditation Service is
established.
8.3. Economic Transformation
8.3.1. The Committee noted that the
establishment of the National Accre-
ditation Service has become more
imperative as Ghana aims to leverage
private-sector-led industrialisation, and
trade and investment to stimulate high
economic growth and sustainable
development. The establishment of a
local Accreditation Body with
international recognition will offer an
opportunity to the private sector to
harness the benefits of market access
under Preferential Trade Agreements,
including but not limited to, the African
Continental Free Trade Area (AfCFTA)
Agreement, the EU-Ghana Economic
Partnership Agreement (EPA), UK-
Ghana Trade Partnership Agreement
(TPA), Africa Growth and Opportunity
Act (AGOA) and the ECOWAS Trade
Liberalisation Scheme (ETLS).
8.3.2. The relatively cheaper and
easy access to Accreditation locally will
also enable industries operating in Ghana
to compete favourably with their
counterparts in other countries.
8.4. Donor Support
8.4.1. The Committee was further
informed that the World Bank has
committed an amount of US$5.1 million,
under the Ghana Economic
Transformation Project to support the
Ghana Accreditation Service. An
amount of US$2.5 million out of the total
support (US$5.1 million) is earmarked
for supporting the activities of the Ghana
Accreditation Service in the 2023
financial year on condition that the
Accreditation Service Bill is
promulgated by June, 2023.
8.5. Public Health and Safety
8.5.1. The establishment of the
Ghana Accreditation Service is in
furtherance of the realisation of the
aspirations of article 36(9) of the 1992
Constitution which enjoins the State to
take appropriate measures needed to
protect and safeguard the national and
wider international environment for
posterity, through co-operation with
other states and bodies.
8.5.2. The creation of the Ghana
Accreditation Service will ensure that
conformity assessment bodies are
competent to verify the health and safety
of products and services whiles at the
same time, preventing unhealthy, unsafe,
and environmentally harmful products
from entering the marketplace.
Ghana Accreditation Service Bill, 2023 — Second Reading
8.6. Financial Sustainability Analysis
8.6.1. The financial sustainability
assessment indicates that the enterprise
is financially sustainable, because it is
self-financing in the medium term. The
Government of Ghana is expected to
contribute an amount of GH₵1,548,895.28 comprising of GH₵1,421,267.28 as Compensation and GH₵127,628.00 as Goods and Services for the establish-
ment and operationalisation of the Ghana
Accreditation Service in one financial year.
8.6.2. However, the estimated
income from Internally Generated Funds
(IGF) shows an increasing upward trend
from GH₵853,000.00 in year 1, GH₵1,023,600.00 in year 2, GH₵1,228,320.00 in year 3, GH₵1,473,984.00 in year 4 and GH₵1,768,780.00 in year 5.
The trend, therefore, gives an
indication that the Ghana Accreditation
Service will be able to finance all of its
activities through IGF after the fifth year.
8.6.2. In addition, the Ghana
Accreditation Service is expected to
receive a total amount of USD 5.1
million from 2023-2026 under the Ghana
Economic Transformation Project,
averaging US$1.275 million per annum
to support its operations.
9.0. Recommendation and Conclusion
9.1. The Committee after extensive
deliberations on the policy rationale of
the proposed legislation, noted inter alia
that the Bill seeks to improve trade
facilitation and capacity to attract clients
due to high assurances for quality and
reliability; improve Ghana's capacity to
take advantage of trade agreements
including opportunities offered by
AfCFTA; and ensures health, safety and
environmental protection in consonance
with the aspirations of article 36 (9) of
the 1992 Constitution of the Republic of
Ghana.
9.2. The Committee accordingly
recommends to the House to adopt this
Report and pass the Ghana Accreditation
Service Bill, 2023 into law in accordance
with article 106 (13) of the 1992
Constitution and Order 119 of the
Standing Orders of Parliament, subject to
the attached proposed amendments
(Appendix I).
Respectfully submitted.
Ghana Accreditation Service Bill, 2023 — Second Reading