Bank of Ghana cheques bounce 10 times

By Osbert Lartey

Accra - China State Construction Engineering Corporation Ghana Ltd has presented a cheque valued at over ?240 million ten times for payment at the Bank of Ghana. In as many times the cheque bounced.

The Chinese Government owned company has undertaken major construction projects in Accra and is presently renovating State House, popularly referred to as Job 600. It has also been awarded a contract to construct the Alajo drainage works around Accra's Kwame Nkrumah Circle area.

Further Chronicle investigations at CAL Merchant Bank revealed that ENERGOPROJECT, another European construction company based in Accra is facing financial embarrassment following a similar experience of dishonoured cheques drawn on Bank of Ghana cheque. A cheque for ?318 million it presented for payment has had problems with Bank of Ghana tellers for more than a month having been rejected on a number of occasions. The cheque, issued on the 24th of February, 2000 and credited to the company's account at CAL Merchant Bank has bounced and as at April 5, 2000 the cheque had been so defaced that there was no space on it for the 'Return to drawer' stamps usually administered on cheques by banks.

Incidentally, that particular Cheque is part of the payment of a multi- billion cedi new office for the Ministry of Finance. Energoproject has also undertaken major projects for government including the Accra International Conference Centre, Cedi House and the ongoing high rise building opposite SSNIT Accra headquarters offices.

Another company similarly hit by these recurrent incidents of bounced cheques is Razel, a French Construction Company. Currently battling serious cash flow problems which is threatening jobs of construction workers. There were fears expressed by workers visited by Chronicle at some of their sites that they will be laid off soon, and some of the expatriate staff confirmed their precarious condition.

Perhaps the company that may be hardest hit is the one that has had a chequered history of run-ins and dalliance with the Government, the originally German owned Construction Pioneers, previously called Carl Ploetner.

Chronicle learn that they are owed in excess of ?40 billion and were recently forced to lay off workers to stave off collapse. A management staff confirmed this information to The Chronicle at their Korle Lagoon project site in Accra last Friday.

The Director of Budget at The Ministry of Finance, Major Tara said his Ministry does not issue cheques but only approves of Government expenditure after approval by the Controller and Accountant General.

His Public Relations Office however said that Government revenue for the first quarter of this year was so low that it was exhausted before March and so the Ministry if now having to wait for Parliament to approve their estimates before their budget could be approved, adding that it was their hope that the problem would be solved.

He explained that the Governor of The Bank of Ghana was so bent on asserting his independence to curb excessive Government spending.

Dr. Kwabena Duffour has established a reputation of doggedness since he assumed office, and has a very tight monetary control policy.

The Controller and Accountant General Mr. Tuffuor refused to answer the question put to him directly in a note slipped to him by The Chronicle through his secretary last Friday. He asked that this reporter should go and write a proper letter.

Bank of Ghana official Secretary Mr. Odei said he is not authorised to speak on issues even though traditionally BoG Secretaries had acted as Spokesmen. He said he was not going to deny that their cheques have been bouncing. He also asked for formal letter.

This is not the first time that cheques issued by the State have been dishonoured by Bank of Ghana.

Last year, cheques hurriedly issued to a horde of angry contractors who had besieged the Ministry of Finance because of liquidity problems.

Dr. Duffour at the time was quoted to have told the contractors that 'There is no money here. Go and ask The Minister of Finance whether one send people to go and collect yams from a yam barn into which no yams have been sent'.