The assurance comes on the back of an incident it witnessed on one of its aircrafts on a flight to Kumasi on Sunday, March 11, 2018.

A statement from AWA and copied to Citi Business News attributed the incident to a bird strike which affected the aircraft’s engine temporarily.

According to AWA, the engine has since been declared as serviceable as the aircraft has also carried passengers back to Accra devoid of any mishap.

Read the full statement from AWA below;

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post AWA renews commitment to safe flights after Kumasi incident appeared first on Citi 97.3 FM - Relevant Radio. Always.

As a result, it is demanding a thorough audit into the operations of the Ghana Civil Aviation Authority (GCAA).

The civil society group maintains that the failure by the GCAA to comply with a caution on the quality of the pilot seat of a Starbow aircraft, partly accounted for the accident that occurred in November last year.

The comments also follow the investigative report on the cause and recommendations into the incident by an ad-hoc committee.

The Executive Director of the Bureau of Public Safety, Nana Yaw Akwadah tells Citi Business News the issue must be taken seriously.

“We are calling on the ICAO to immediately open an audit into the activities and practices of the GCAA just so we know whether they are complying with the minimum standards by ICAO; we have also called for them to provide us with the recent audit report on the GCAA for study so that we can assure ourselves and the public of their safety,” he told Citi Business News.

A Kumasi bound Starbow aircraft skidded off the runway at the Kotoka International Airport (KIA) on that fateful day; November 25, 2017.

All passengers and crew members were however able to escape unhurt.

The issue led to the commissioning of an investigative committee.

But subsequently, Starbow which had only one aircraft operating at the time, suspended activities and asked almost all of the workers of the company to go home, albeit temporarily.

The investigative committee has since completed its work but the Bureau of Public Safety maintains that the officials of the GCAA neglected an earlier safety precaution.

“The Bureau of Public Safety has come to the firm conclusion that the unfortunate incident which may have cost over sixty-eight lives could have been prevented had the regulator i.e. Ghana Civil Aviation Authority ensured that an earlier issued air worthiness directive (AD No. 2016-0256) regarding the seats of the pilot and the co-pilot were implemented,” portions of the statement indicated.

The consumer group added, “We found it extremely worrying that investigators having established evidential and unambiguous violation on the part of the GCAA still went ahead to fault only Starbow (i.e the operator) and the flight crew without any recommendations whatsoever for the regulator (i.e. GCAA).”

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

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They argue that the inability to implement existing laws have partly accounted for the losses hence must be checked.

The comment comes after the suspension of the Cargo Tracking Notes (CTN) last Friday, February 16, 2018.

Obviously pleased with the decision by the Office of the Vice President to suspend the implementation of the CTN, the businesses maintain that the losses have largely been due to a lax monitoring system at the ports.

Vice President of the Association of Ghana Industries, Humphrey Ayim-Darkeh tells Citi Business News reviewing the customs documentation process to allow cross-checking of information on imports, should correct potential malpractices.

“For instance, if I import a particular consignment of goods and the forwarding agent passes the entry and the description is done by a customs and there is an element of under declaration, we will see it in the portal,” he explained.

Freight Forwarders equally maintain that compelling shippers to comply with standardized format for presenting manifests which describes the weight, volume as well as the stowage plan for a consignment of goods, should reduce under declaration.

The President of the Ghana Institute of Freight Forwarders, Kwabena Ofosu Appiah stated as,

“The shippers provide the manifest but the timing and the format that it takes; it is very crucial because if the consignment gets to the destination before manifest is provided, that could lend itself to a whole lot of discrepancies. But if it is provided from source, then everyone gets to be comfortable with the process.”

It is unclear whether the government bears any judgement debt with the latest development as managers of the platform are yet to comment on the matter.

But Citi Business News understands that there is a crunch meeting on the issue later this week to decide the next action.

For the AGI and the freight forwarders, enforcing international best practices could also improve revenue mobilization going forward.

“Guarding under-invoicing, mis-description of products, dumping and other related issues, we think the Ghana International Trade Commission ought to be inaugurated as that would be one of the institutions to complement the efforts of the AGI in meeting its goal,” Mr. Ayim-Darkeh added.

His counterpart, Kwabena Ofosu Appiah stressed, “I would want to urge the GRA on to tool its staff and make them understand the changing phase in international trade business such as Trade facilitation and its impact.”

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By: Pius Amihere Eduku/citibusinesnews.com/Ghana

The post Opponents of CTN demand strict monitoring at ports appeared first on Citi 97.3 FM - Relevant Radio. Always.

The CTN is expected to track all imports to Ghana to reduce revenue losses with under declaration.

Even before its implementation in March 2018, the businesses say they will be disadvantaged.

The freight forwarders argue that the Cargo Tracking Notes (CTN) is a duplication of efforts to slow down their activities.

They explain that the customs already has access to shipment information hence no need for any new documentation.

The President of the Ghana Institute of Freight Forwarders, Kwabena Ofosu Appiah explained the group’s position as;

“We believe this is just allowing someone to set up just a system to provide information on imports such as vehicles and make up to about 100 dollars on every bill of laden,” he stated.

The CTN primarily allows freight forwarders from the country of origin to upload information on a particular consignment unto the platform.

This is subsequently relayed unto the Ghana customs platform in real time.

The charges range between 100 and 200 dollars per consignment of goods.

This is however dependent on the number of consignments.

The CEO of CTN Ghana, Geoffrey Cole disputes the arguments of the freight forwarders of additional costs.

“We are dealing with the freight forwarder at the port of origin who is engaged by the shipper or supplier or manufacturer to process documents out of that country to Ghana. So we have no business with the freight forwarder whose mandate resides in Ghana,” he explained.

Due to the timely provision of information, any consignment which is suspected of under declaration or under valuation, could be surcharged to avert any possible revenue loss due to tax evasion.

Geoffrey Cole tells Citi Business News the program should also protect the economy from dumping of unapproved goods.

“The benefits do not only accrue to customs but also to the Ministry of Health as it can use the CTN to control the importation of some prohibited pharmaceutical products. Likewise the Ministry of Interior could use the CTN to determine any threat of importation of unwanted weapons, etc. Also, the Ministry of Trade in making economic decisions for Ghana could also use the CTN to track imports,” he added.

A Tax advisor at the Commissioner of Customs, Christian Sottie admits to the outstanding issues raised by the businesses.

He however explains that all such issues should be resolved for the roll out in March.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Importers resist Customs’ Cargo Tracking Notes policy appeared first on Citi 97.3 FM - Relevant Radio. Always.

This is one month earlier than the initial completion scheduled date of May 2018.

According to the Ghana Airports Company Limited, the Terminal, when completed, will process about 5 million passengers annually.

This will be a vast increase from the 2 million passengers currently being processed at the Terminal Two.

“It is a much larger airport, more modern, highly computerized and modern day state of the art facilities. We expect to be able to handle five million passengers per anum. Currently, we are doing just about two million at terminal two so this is going to be a much bigger terminal,” Managing Director of the Ghana Airports Company Limited (GACL), John Attafuah said.

He further disclosed that the edifice will be able to enclose about 1,600 passengers hourly.

“It is projected that at this peak, it can process over a 1,600 passengers in an hour.”

Mr. John Attafuah further told Citi Business News the terminal will bring convenience to travelers.

“Now we will have what we call a passenger boarding bridge which means there is a bridge connecting the terminal building to the aircraft.”

The Terminal three project is partly funded by the African Development Bank with the aim of easing pressure on the existing two terminals.

The expansion project is estimated at 274 million dollars.

It includes a $120 million loan from the African Development Bank (AfDB) making it the first private sector investment by the bank in Ghana’s transport sector.

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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana

The post KIA’s Terminal three to be ready in April appeared first on Citi 97.3 FM - Relevant Radio. Always.

It will also follow the completion of the necessary tests and the webpage for operating the platform.

When successful, Ghana will become the fourth maritime country to introduce these advanced capabilities (after Denmark, France and Canada).

This should also leapfrog the country into the forefront in the use of technology in the maritime domain.

A statement on the latest development from the Ghana Maritime Authority (GMA) and copied to Citi Business News said, “Ghana’s initiative towards the E-navigation solution was developed by Denmark as part of the strategic maritime sector cooperation between the two countries.”

According to the statement, “a demonstration of the initiative took place at the Authority’s Vessel Traffic Monitoring Information System (VTMIS) Control Centre in Accra recently which involved the simulation of the receipt of an intelligence alleging acts of piracy in a given area.

“Within 60 seconds, this information was entered into the system and communicated by twitter and shown on the map on a website, warning all mariners to stay well clear of the incident area.”

Project leader from the Danish Maritime Authority, Dr. Christopher Saarnak, who was in Ghana to train the GMA staff was impressed with the skill of his Ghanaian partners and “is excited about the prospects of this new technology, saying “this e-navigation system will benefit the safety and security of all users in the maritime domain in Ghana, from large commercial vessels to the small fishing vessels.”

He added that “the large vessels will now get a graphical overview of navigational warnings instantly, rather than decoding endless lines of positions and plotting them on charts.For the small vessels, all it will take is one person in the community owning a smart phone to get updates of hazards to their navigation in real time”.

Mr. Kwame Owusu, Director General of the GMA and Ambassador of Denmark, Ms. Tove Degnbol witnessed the demonstration.

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Credit: Ghana Maritime Authority

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According to the President, the move will involve the construction of new railway lines and the extension of some existing lines to facilitate movement of passengers and goods.

Mr. Akufo Addo made the disclosure when he presented the State of the Nation Address to Parliament on Thursday, February 8, 2018.

In his view, a modern and reliable network of roads, railway and airport will transform the country.

“We are in the final stages of agreeing with a significant investor, the terms of a Build, Operate & Transfer (BOT) agreement from Takoradi to Kumasi which will be presented to Parliament this year. There is already a contractor onsite for the construction of the Kojokrom to Menso section of the Takoradi to Kumasi railway,” the President told Legislators.

The development of the rail infrastructure has been one of the critical issues on the agenda of the NPP administration.

The persistent issues of unpaid arrears have led to the halt in operations intermittently.

But the sector Minister, Joe Ghartey has commenced processes to settle all outstanding debts and attract new investors for the sector.

Parliament approves GH¢200m tax waiver for railway lines

The President’s announcement also comes at a time that Parliament has approved about 200 million cedis in tax waivers for the construction of an 84 kilometer multi-modal railway line between Tema and Akosombo.

When completed, the railway project will facilitate movement from Tema to Buipe through Akosombo.

Citi Business News is also learning that the rail line comprises rail stations between Tema and Akosombo and the construction of railway heads at Tema and Akosombo.

Meanwhile, the President maintains that the government is engaging consultants on the proposed railway line between Kumasi and Paga.

“The process has also commenced to select a suitable partner for the construction of the eastern line from Accra to Tema to Kumasi; we aim to break grounds this year. A central spine from Kumasi to Paga is also receiving attention and consultants have been engaged to advise government on the best model for the development of the line,” he added.

Ghana-Burkina Faso rail line to complete by 2018 3^rd quarter

Commenting on the progress of work on the Ghana Burkina Faso railway line, Nana Akufo Addo was confident of completing the process by the end of the year.

“With reference to the Ghana Burkina Faso rail interconnectivity, the two countries are in earnest discussions as to the realisation of the project. There are fortnightly meetings either in Accra or Ouagadougou and we are confident that the deliberations will conclude and actual construction will commence by the third quarter of the year,” he stressed.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Gov’t engages investor for Takoradi-Kumasi railway line appeared first on Citi 97.3 FM - Relevant Radio. Always.

They maintain that such allegations could not be possible as they go through strict scrutiny in the clearing process.

The comments come on the back of concerns raised by the Association of Ghana Industries (AGI) over the collapse of major policies should the malpractices at the ports go unresolved.

One key program that the AGI believes the illegality threatens is the one district, one factory.

The President of the AGI, Dr. Yaw Adu Gyamfi announced the plight of the local manufacturers at a media briefing last Thursday, February 1, 2018.

According to him, the issues of under invoicing, under declaration and mis-description have become complex due to reports of custom officials conniving with the perpetrators.

“Paying taxes in Ghana is mandatory yet some criminal minded importers have found cunning ways to evade tax/duties through the connivance with some revenue officials at the ports,” he stated.

Manufacturers lament unfair competition

Commenting on the issue, the CEO of cosmetic firm, FC Group of Companies, Grace Amey Obeng also lamented the unfair pricing compared with imported products.

“Creams that would cost you about 1 cedis to produce in Ghana is being sold out on the market for 1 cedis 50 pesewas and that is impossible considering the cost of production such as packaging, water and electricity…We cannot scale up and compete with the imported products,” she stated.

Another member of the AGI, who is a manufacturer of fruit juice, narrated his story on the impact of the malpractices.

“Almost every supermarket in Ghana has stocked other brands of fruit juices imported into the country which also contain the food concentrates that we have similar ones produced in Ghana. Why then do we not use those that are produced in the country? We are only happy to create jobs for other countries.”

Freight forwarders respond

But reacting to these concerns, the President of the Ghana Institute of Freight Forwarders (GIFF), Kwabena Ofosu Appiah explained that the strict clearing process couldn’t allow such illegalities.

“The Technical Services Bureau does not take the documents that we present hook, line and sinker; this includes the declared intention before it is allowed into the system. We have another crack team of customs officers at the compliance level who have records that have piled up as a result of transactions that have passed through the system.  After all of these you go unto the field and meet another set of customs that is if you are channeled to go through examination,” he told Citi Business News in an interview.

On the specific concern of systems breakdown of the scanner, Mr. Appiah explained as;

“The system that we have on the ground is making it such that goods that are even channeled to the scanner are even reducing; over 76 percent of our operations at the ports is going through the red channel which is physical examination…This goes beyond finding comfort in blaming someone for the challenges at the ports.”

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Importers reject tax evasion claims by AGI appeared first on Citi 97.3 FM - Relevant Radio. Always.

He explains that his ministry will work to generate funds to address critical issues confronting residents in such communities.

Mr. Agyarko believes addressing the funding needs is critical to sustaining the livelihoods of such affected persons.

“I wish to lay emphasis on the sordid plight of the resettlement townships because for about 30 years, these communities have suffered from environmental degradation, poor drainage and road networks and difficulties arising from low income levels. It is reported that initially, these townships did not even have electricity supply, the very commodity for which the people lost their entire livelihood,” he stressed.

Mr. Agyarko added, “The Trust Fund, has achieved a modest success, however, it has faced numerous challenges over the years, primarily, because the grant from the Volta River Authority (VRA) has not been regulator in the past few years. In fact, I am informed that a part of the grant expected in 2015 and the grants expected in 2016 and 2017 are still outstanding.”

The Volta Resettlement Fund, established over twenty years ago (1996), is mandated to seek to the welfare needs of the 52 communities affected by the Volta Lake project.

The creation of the Volta Lake among others, led to the flooding of about 730 villages with a total population of about 80,000 people.

Speaking on behalf of the Board of Directors for the Fund, the Chairperson, His Worship Rtd. Emmanuel Nana Antwi-Barima also expressed his outfit’s resolve to improve the livelihoods of all affected persons.

“If the state has so soon forgotten that the people whose land has been swallowed or cannibalized by the water before we are getting fish, water and electricity are being relegated to the background, then this is an awakening call. First to the Minister and his Deputies, then we the Board members,” he noted.

He added, “But the only problem is that when we come, there wouldn’t be the usual syndrome, no money antics…But automatically, money will be used for certain things we want to give to the people i.e. education, water, electricity, among others.”

The Board is Chaired by His Worship Rtd. Emmanuel Nana Antwi-Barima with members including; Hon. Matthew Nyindam, Ms Beatrice Owusu, Hon. Salifu Braimah.

Others are; Hon. Joycelyn Tetteh, Hon. Helen Adzoa Ntoso and Mr. Winfred N. Amanu.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Ministry prioritizes communities displaced by Volta Lake Project appeared first on Citi 97.3 FM - Relevant Radio. Always.

However, a swift intervention from government through the National Petroleum Authority (NPA)’s price stabilization mechanism could keep prices stable.

The Institute of Energy Security (IES) which revealed this, further attributes the development to the constant rise in crude oil prices which is currently selling at 69 dollars per barrel on the international market, among other factors.

“Crude oil prices have gone up on the international market and it is still rising; as we speak the cost of a barrel of oil is averaging around 69 dollars from a previous average of 67.7 dollars. That’s a rise of about 2 percent. The finished product that’s gasoline and gas oil prices have also gone up on the international market,” Principal Research Analyst at the IES, Richmond Rockson told Citi Business News in an interview.

Consumers have had to pay more at the pumps last month (January 2018), due to rise in oil prices and the cedi’s marginal depreciation.

Currently, a litre each of petrol and diesel is selling at 4 cedis 62 pesewas at some major fuel stations.

Mr. Rockson explained the trend of the fuel price stability to Citi Business News.

“In the first pricing window of December 2017, government reduced the price stabilization recovery levy in the price build up from 10 pesewas to 3 pesewas, that’s a 70 percent reduction. In the second pricing window of December, it moved from the 3 pesewas up to the 7 pesewas. That means the subsidy was just about 3 pesewas. In the first pricing window of January, government applied it to the increment that was supposed to be experienced by consumers. That was just about 4 percent. Most of the OMC’s did not increase prices at the time.  But in the last pricing window, it wasn’t enough so prices went up at between 25%,” he explained.

But Richmond Rockson says prices will go up again should government not intervene.

“So in this particular window, for the first pricing window of February if government intervenes in the price stabilization mechanism, then definitely that means prices that are supposed to go up will be absorbed by that levy. If government does not intervene, we are expecting that prices will go up by about 2 percent” he asserted.

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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana

The post Fuel prices to rise by 2% in February – IES  appeared first on Citi 97.3 FM - Relevant Radio. Always.