30 Institutions Owe BOG ?400 Billion

Thirty public and private institutions that benefited from a ?130 million Credit Line Facility of the Export Credit Guarantee Department of the Bank of Ghana (BOG) between 1990 and 1995 are indebted to the bank to the tune of ?118,498,977.39 (?404,059,826,012.59). Only ?11,203,978.10 out of the total amount advanced to them had been recovered as of June 14, 2002. The audit report for the first half year of 1998 indicated that the said organisations received a total of ?15 million each in 1990 and 1992, ?80 million in 1993/94 and ?20 million in 1995.

This was contained in the report of the Public Accounts Committee on the Auditor-General?s Reports on the Statement of Foreign Exchange Receipts and Payments of the BOG for the periods December 31, 1997, June 30, 1998 and December 31, 1998, laid before Parliament recently. The report of the committee covers the foreign exchange transactions of the BOG for the said periods which deals with the comparative analysis of the bank?s receipts and payments and detailed comments on the specific findings of the Auditor-General (AG) on the general management of the foreign exchange transactions of the bank.

The report said under the arrangement, BOG was to effect the foreign exchange transfer for the settlement of the loan and then debit Government of Ghana account with the cedi equivalent with the beneficiary organisations settling their indebtedness with the Controller and Accountant General (CAG) in cedis.

It however, noted that the low recovery rate resulted from poor co-ordination between the BOG, Ministry of Finance (MOF) and the Controller and Accountant General?s Department. The committee noted that the total number of organisations that benefited from the facilities were 30 and not 39 as reported, adding that the beneficiaries comprised 20 private organisations and 10 government agencies and that the loan facility attracted a total bank charge of ?12 million. It mentioned the companies as USSUYA Ghana Limited, BASCOM Works, Progressive and Modern Company Limited, Yiadom Builders Limited, Wunishie Secretarial Limited, Dannielli Mabey Enterprise, Pentrex Enterprise and J. Stanley Owusu Limited.

Others are: Chatsworth Carpets, Fruits and Flavours, Eagle Star Enterprise, Frandesco West Africa, K.E. & Sons, KASAP, J. Adom, Kamara, Mallam Issa Ishaku & Brothers, Marine Construction, Taysec Construction and P.W Ghanem.

The government agencies are: the Ghana Police Service, Ghana Prison Service, Ghana National Fire Service, Ministry of Works and Housing, Ghana Highway Authority, Ministry of Roads and Highways, City Express Services, Ministry of Information, Ghana Broadcasting Corporation and the State Construction Corporation.