GIPC shuts down illegal foreign companies

Accra, July 31, GNA - The Ghana Investment Promotion Centre (GIPC) on Tuesday closed down several foreign companies engaged in illegal business operations in the Central Business District in Accra. The exercise is the first in a series that would be conducted throughout the country to weed out illegal business operations. The eight shops and businesses that were closed are Dutch African Import and Export Company, dealers in imported used clothing, Xilaian Import and Export, dealers in leather accessories and Dynamic Shoe Factory, who were also dealing in leather shoes, belts and accessories. The rest are Fullmore Ghana Limited, China Wenz Hou Siuo, Cases and Leather Goods Company Limited and Hanasi Trade Company Limited. Other companies closed down were Blessed Big S Enterprise and Xianwei Trading Company, dealers in rechargeable saving lights. Hanasi Trade Company Limited and China Wenz Hou Siuo Cases and Leather Goods Company Limited were closed for non-compliance and inability to produce valid GIPC registration certificates. The action followed findings of the Committee on Trade and the Ghana Union Traders Association and Inter-Agency Task Force, which concluded that GIPC laws were being blatantly flouted. According to the GIPC, it had to shut down the businesses for operating illegally despite several reminders and personal contacts that yielded no response from the owners.

"The GIPC is taking this action after exhausting more than a 30-day notice to the offenders to regularize the situation," GIPC said. It added that in most cases, businesses usually with foreign participation did not register with the Centre, but got directly onto the retail market.

Section 18 of GIPC Act of 1994 indicates that the sale of anything whatsoever in the market, petty trading, hawking or selling from a kiosk at any place is reserved for Ghanaians.

Similarly, the operations of taxi and car hire service and all aspects of pool betting and lotteries except football pools are for local companies only. A non-Ghanaian may, however, undertake taxi services provided he has a minimum fleet of 10 brand new vehicles. The GIPC said it had the mandate to encourage and promote investments in the Ghanaian economy and also coordinate and monitor all investment activities.

Dutch African Import and Export Company had been registered as a manufacturing concern but was operating in the retail sector, selling imported used clothing. 31 July 07