Take second look at financing timber business- J.H. Mensah

Accra, July 27, GNA- Mr Joseph Henry Mensah, Member of Parliament for Sunyani East, on Friday called for a second look at the financing of the timber business in Ghana. He said the financing of the industry by non-timber interests was making the state lose the business to the financiers. Mr. Mensah made the suggestion in Parliament during discussion to adopt a motion on a Parliamentary Committee Report on the Timber Utilisation Contracts allocated under the Competitive Bidding Process that in the year 2004.

The motion was carried but Mr Mensah however, noted that the financing of the timber interests, by non-interests was moving the industry rather backward, and making the nation lose the business to the financiers.

The Report, prepared by the Committee of Lands and Forestry, was in response to a request by the House, followed a request by the Minister for Lands Forestry and Mines to Parliament on July 24, 2007, to approve by resolution Timber Utilisation Contracts allocated to four timber companies.

The Companies are Messrs Oti Yeboah Complex, Chridi Construction Limited, Chiraa Forest Mill and Yaw Asiamah Pepra Timbers Limited, which are operating in the Sankore, Bitre, Akrodie and North Formangsu Off Reserves respectively.

The Committee recommended that the Forestry Commission should agree on a schedule of payment for an outstanding 60 per cent of Timber Rights Fees, which should be submitted to the Committee for monitoring. It also urged the Forestry Commission to ensure, that the timber companies fulfill the requirements set out in the Social Responsibility Agreement-to provide potable water, school infrastructure, access roads, clinics, electricity, library and contribution to endowment funds. 27 July 07