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PIAC tasks gov’t to adopt measures to properly analyze costs of petroleum contracts to avoid losses – Citi Business News

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The Public Interest and Accountability Committee (PIAC) is asking the government to adopt measures to thoroughly vet costs provided by international companies before petroleum contracts are signed.

In a 10-year assessment report on the petroleum sector, the Committee says this needs to be tackled with all seriousness to prevent wastage of money in the sector.

Commercial production of oil and gas in Ghana commenced in December 2010 following the discovery of the play-opening Jubilee Field offshore Ghana in 2007.

Since then, oil and gas production and exports have provided a critical boost to Ghana’s economy over the past ten years. It has become a fundamental component of the country’s industrial strategy and transition to a middle-income country, acting as the lever to provide jobs and energy security.

The Public Interest and Accountability Committee report titled, “Assessment of the Management and Use of Ghana’s Petroleum Revenues between 2011 and 2020”, assessed Ghana’s management and use of petroleum revenue between 2011 and 2020 in line with the requirements of Ghana’s Petroleum Revenue Management Act 2011 (Act 815, as amended by Act 893) and the Petroleum Revenue Management Regulations 2019 (L.I. 2381).

According to the report, Ghana earned about $6.55 billion from oil and gas production as of the end of 2020, equivalent to 9.97% of Gross Domestic Product.

Regarding the breakdown of the petroleum receipts by fiscal instrument, PIAC said carried and participating interest by far generated the highest share for Ghana, accounting for 58 percent or 3.8 billion dollars of the total revenue earned.

On the allocation of petroleum revenue inflows, the report revealed the Annual Budget Funding Amount received the highest amount of $2.6 billion (40%) over the period.

This is followed by the Ghana National Petroleum Cooperation receiving $2.0 billion (30%); the Ghana Stabilisation Fund (GSF) receiving an amount of $1.39 billion (21%) of total revenues; whereas the Ghana Heritage Fund (GHF) received $586 million (9%) of the total allocation.

The report further showed that three oil-producing fields, namely the Jubilee, Tweneboa-Enyenra-Ntomme (TEN) and Sankofa-Gye Nyame (SGN), account for petroleum revenues as of the end of 2020. According to PIAC, an amount of 31.22 billion dollars in value was generated from these fields in the ten-year period.

According to the report, production will continuously decline if nothing is done through new in-fill developments on these existing fields or new fields coming on-stream.

In addition, PIAC is advising the government to adopt a laser-like approach to cost monitoring as this, along with transfer pricing, is one of the major ways the State loses money in the industry.

The committee believes there is a strong need for Ghana to fully vet costs provided by international oil companies as this ultimately goes to the heart of whether the country would get its fair share of revenues.

To effectively operationalise this, PIAC is suggesting that the petroleum and transfer pricingunits of the Ghana Revenue Authority be provided with adequate human resources and technical capacity to conduct audits effectively.

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New Commonwealth CEO discusses trade, other opportunities with Ofori-Atta, Kyerematen

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The newly appointed Chief Executive Officer of the Commonwealth Enterprise and Investment Council, Rosie Glazebrook has paid a courtesy to the Minister of Finance, Ken Ofori-Atta and the Minister of Trade and Industry, Alan Kyeremanten, to discuss the upcoming Commonwealth Business Forum which takes place beside the Commonwealth Heads of Government Meeting in Kigali, Rwanda from June 21st to 23rd.

She also discussed trade and other opportunities within the ECOWAS sub-region with them.

Speaking to the press, Rosie Glazebrook stated that the Commonwealth is keen to use its convening soft power to promote trade, investment and innovation across all 54 countries of the Commonwealth:

 “The Commonwealth advantage is based on shared language, history, culture and legal systems. This means that it is 21% cheaper for a Commonwealth country to trade with another Commonwealth country, rather than a non- Commonwealth country”.

 She continued, “Ghana and Africa have great resources and human capital that when harnessed properly will propel the entire continent to new levels of economic and geopolitical power. We want the Commonwealth to be a partner in this success story”.

 Whilst in Ghana, Mrs Glazebrook met with a cross section of Ghanaian businesses who have been specially invited to be part of the Commonwealth Business network in Ghana.

These businesses are the Universal Merchant Bank, headed by Nana Dwemoh Benneh; the Consolidated Bank of Ghana, headed by Daniel Addo; Etranzact Ghana Limited managed by John Apea; GLICO group headed by Edward Forkuo Kyei; Africa legal Associates headed by Nana Adjoa Hackman; Goldcoast Refinery headed by Dr. Said Deraz and Ghana EXIM Bank headed by Lawrence Agyinsam

Mrs. Glazebrook who until her appointment was the First Commissioner of Her Majesty’s Civil Service of the United Kingdom, takes over from Samantha Cohen CVO, the former Private Secretary to Queen Elizabeth who has recently been appointed as Chief of Staff to the UK Prime Minister, Boris Johnson.

CWEIC is a commercial, not-for-profit membership organisation with an official mandate from the Commonwealth Heads of Government to facilitate trade and investment throughout the 54 Commonwealth member nations.

The role of CWEIC is to use the convening power and trusted network of the Commonwealth, which is led by Her Majesty the Queen, to drive trade and investment.

CWEIC’s network includes around 100 business and government Strategic Partners (members) including Standard Chartered, Dangote Group, Zenith Bank, Rolls Royce, ACCA and the Governments of Malta and the Maldives.

 Every two years, CWEIC hosts the Commonwealth Business Forum in association with the host country of The Commonwealth Heads of Government Meeting (CHOGM).



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Hollard Ghana and Melcom extend partnership online with e-commerce

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Insurance and commerce partners Hollard Ghana and Melcom have announced the extension of their “Shop and Insure” collaboration beyond the current in-store Hollard on-the-go booths in select Melcom stores, to e-commerce on www.melcom.com.

This move will enable more Ghanaians to conveniently use digital means to access financial security on their purchases and lives.

The existing partnership between the unconventional insurance group with subsidiaries Hollard Insurance and Hollard Life Assurance, and the retail giant, Melcom, enables customers who enter selected Melcom stores to sign up for insurance on their appliances, electronics, and families while they shop.

With this e-commerce addition, customers can also navigate Melcom’s online shopping portal to access Hollard’s general and life insurance products.

Speaking on the announcement, Group CEO of Hollard Ghana, Patience Akyianu, said; “As an innovative company, we seek ways to make insurance more accessible.

“Consequently, with this move to e-commerce, we have elevated our pioneering partnership with Melcom by adding digital to the conventional brick and mortar store distribution channel.

“We are proud to acknowledge that this aligns with our purpose of courageously pursuing a better way to improve the lives of Ghanaians.”

“Our goal at Melcom is to be a one-stop shop for all our customers. Recently, there has been a surge in e-commerce since the outbreak of the COVID-19 pandemic. As a forward-thinking company, it is only prudent to add insurance to the variety of products available in our online shop. 

Customers can now log on to www.melcom.com to enquire about the unique insurance products as they shop for their groceries and home essentials online.

“We believe it will deepen our partnership with Hollard while increasing insurance penetration in the country”, said The Directors of the Group. 

The Hollard general and life insurance policies available on Melcom’s e-commerce platform are motor, electronics and appliances, home, travel, life, funeral, and investment. Hollard is poised to answer all related customer enquiries.



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Max International donates to Potters Village

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Max International-Ghana, a global leader in glutathione-enhancing products has taken its ‘MaxGivesBack’ initiative to the Potter’s Village Home where it made mouthwatering donations to the children.

With the mission of empowering people not only to experience better health, success, and significance it is also providing for the needy and enhancing lives of victims of domestic violence, deprived children and orphans as well.

The team led by its Country Manager, Miriam Mahama donated items including 3000 litre-capacity polytank, bicycles, gas burner, assorted drinks, packs of mineral water, bags of sorghum, boxes of milk, gallons of cooking oil, boxes of tomato pastes and toiletries.

Other items are sanitary pads for the girls, washing basins, beans, diapers, and reading books.

The company also donated a cheque of ¢5,000 towards the educational needs of the children.

The Country Manager of Max International-Ghana, Miriam Mahama averred that the donation is part of her outfit’s Corporate Social Responsibility (CSR) which is carved under the “5 For A Smile” project where customers as well as staff donated ¢5 towards such worthy cause.

She also pointed out that the company is not reaching out only to orphanages, but the community as well and that during the COVID-19 lockdown, the company did a lot in the community to help people survive the situation.

“It is not only about revenue, but giving back to society. And for us being here at Potter’s Village, it’s a privilege to donate and assist these children with food items and cash for their educational needs. We encouraged them to keep their hopes and dreams alive,” she said.

Receiving the items on behalf of the Home, the Founder of Potter’s Village, Rev. Jane Adu thanked Max International for the gesture and saID the children are happy for the donation since it will go a long way in bettering their lives and their stay in the Home.

“We have one of the children at UCC, three at the University of Education, others at various stages of education…right from the creche to Senior High,” she added.

Rev. Jane Adu however noted that, most orphans find their way in that situation because of bad marriages, hence the Home is establishing a Marriage School where all the facts about marriage will be taught.

According to her, there are 39 factors one has to consider before getting into marriage and that the school when completed will ensure that it imbibe into the youth, these factors so as to help build strong marriages and thereby prevent the orphan’s situation in the country.



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