He called for strong collaboration with members of the association to help win the fight against illegal mining.

[contextly_sidebar id=”YYhe6viCThV9AxxBH1qDPSTqMLXdIwxe”]He made the pronouncement today at a meeting with the Association of Small Scale Miners.

The Miners were seeking clarity on government’s intentions following an impending expiration of a 6-month ban placed on small-scale mining in the country.

John Peter Amewu who had earlier given an indication that the ban would be extended urged the members of the Association to collaborate with the ministry to sanitize the mining industry.

He intimated that “Operation Vanguard are doing their best, but I have gone round and the little involvement I have seen with your team far out weight what is happening, we must be frank, because you know the places, you were not involved in this, you were burning and clearing, because you know the area, now you have absented yourself all away from this thing.”

“My visit to the site was to ascertain the progress we have made and I say, until responsible mining goes on, until we can walk to river Pra to fetch water and drink, if you cannot do all these, you lift the ban. We want to solve the problem so that we can go to Ankobrah and drink from it, let ask ourselves, if anybody is able to drink the water, we will not go back and mine.”

He reiterated the NPP Government’s commitment towards the fight but bemoaned the lack of cooperation between government and the small-scale mining companies.

“I had the opportunity to visit a mining community, I saw an old lady with a yellow gallon going to fetch water, I asked her, what the water was for, and she responded, it was to mix with chemicals to spray her cocoa farm, but just at the outskirt of her farm there was a stream, I asked why not fetch from there and she replied that anytime she uses that water with the chemical to spray her farm it doesn’t work, because the water is heavily polluted, this doesn’t give an encouragement and hope that we achieving anything collectively,” Amewu said.

“I am a part of a government, and this government has a very well crafted manifesto, it based on this manifesto, that Nana Addo stated he will sanitize the small-scale mining sector and it, based on some of this, claimed his government was voted into power. It is this majority that will question the government. I am very much disappointed that the collective understanding, that we have to address this problem has not been fully materialized, I wish the various bottled water by you were fetched from rivers like Bia, Tano, Ankobrah for us to drink. There is a possibility of an extension, to put a complete ban on river bodies mining.  As I speak there is a still a moratorium on issues of new of new license.”

Mr. Amewu who tasked the Small Scale to collaborate with government to win the fight against illegal mining said the government will provide funding to support the course.

He told the media of the ministry support to include members of the association in policing the activities of illegal miners. He asked them to come up with a budget for the ministry’s approval.

Mr. Amewu stated, “ we are asking them to come in and help us with what we have started in clearing the rivers, and of course, they are willing. But their major concern has to do with resources. It is true we did not make any resources available to them in the initial stage and they complained of resources. So we have asked them to bring a budget, we will look into that budget and make sure we advance some money for them to help. They identify and know the places that these guys are working in the river bodies so they assist us together with the Operation Vanguard so we should be able to clear that.”

“The second point is that we as a government will not say Ghanaians will not mine, Ghanaians will definitely mine. But we must set up clear strategies as we agree that the MMIP will come to address. So we’ve agreed on beginning an auditing process which will involve members of the Minerals Commission and the Small Scale Association to start some form of auditing of the licenses. Some of the licenses have expired.  Under the Small Scale, we’ll set up an intelligence unit which is going to control the tracking of the devices and applications. And we’re going to have what we call Mining Guards. We just want their help, we want their collaborations. They have started very well with us and we don’t want them to backslide. They also expressed some concerns and these concerns, of course, are very genuine.”

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By: Kojo Agyeman/citifmonline.com/Ghana

The post Help us win anti-galamsey fight – Amewu urges small-scale miners appeared first on Citi 97.3 FM - Relevant Radio. Always.

The General Secretary of the Association, Godwin Armah, explained that their members know the schemes of illegal miners and where they operate, hence their involvement will be of great benefit to the task-force.

He made the comments after a meeting with the Lands and Natural Resources Minister, John Peter Amewu on Thursday, October 5.  Top on the agenda of the meeting was a dialogue on a road-map that will lead to the lifting of the ban on all forms of small-scale mining.

[contextly_sidebar id=”sHEg1g25cQYqGLpGW7nOGHe3rqKQvUgv”]Speaking to the media, Mr. Armah pledged the Association’s support to government’s fight against illegal mining adding that they will in three days present a plan and budget to the lands minister.

He said: “the miners are very familiar with their terrain and can, therefore, fish out the illegal miner. We will automatically kick them out as we’ve been doing but our absence now is giving them that leeway to be working. Note that Operation Vanguard is not working in the night; they are always working during the daytime because of security reasons and also there are remote areas that these guys are operating. We know these areas very well known and can, therefore, apprehend them and hand them over to the Operation Vanguard.

Mr. Armah added that: “Operation Vanguard team rotates the military men, every month. So once you’re able to acquaint yourself with the terrain before you know it, one month is up and you need to be rotated. This is one of the disadvantages. Also, they are visible, once they are coming you see ‘Operation Vanguard’ on their vehicles with their tags. So those dredgers what they do is they allow people to sit by the roadside as informants for them so once they see Vanguard heading towards their direction they call them and before they get there and then before they get there those people would have bolted. This is a huge challenge so it is really making it difficult for Vanguard to operate.  We are already on the field so once we identify them; we will quickly call the taskforce to arrest them, or we will arrest them. ”

Speaking on a task from the Lands Minister for them to prepare a budget for their involvement, Mr. Armah said the budget will be presented within two days.

He added: “it’s something that we have been doing, we have gone through the operations and we know how much it will cost so it’s just a matter of getting it within two or three days. When we go we fund both the local securities there. Normally we go with the district assembly, we have NADMO as part, immigration, and the police and also I think the Fire Service. Anytime we go we are in the company of these groups so if Government wants to fund it I think when we sit we can be able to look at those things but we can give them the budget within three days. It depends on the location and the terrain.

“You know some of the terrain you have to walk about two or three hours before you get in. You need to get an extra hand to carry some of the machines and equipment that they are using so then you need to employ a lot of people to do that. Every terrain and its budget.”

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By: Kojo Agyeman/citifmonline.com/Ghana

The post We want to join anti-galamsey taskforce – Small-Scale miners appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, the despite some positive results yielded so far in the fight against galamsey in the country, the outcome of the campaign, in general, is still unsatisfactory.

[contextly_sidebar id=”UdCN88jB9hejKf6hWgLN3VWPB3r53l2Z”]The initial six-month ban was set to end in October 2017, and Peter Amewu, earlier suggested that an extension was inevitable because the moratorium had not achieved a substantial amount of its objectives.

Speaking on Eyewitness News on Thursday, Amewu, who refused to score the government’s anti-galamsey efforts higher than five out of ten, believes that an extension of the ban by at least three months could yield significant strides in the campaign.

“Looking at something similar to what has happened[so far], we could go for about 50% [of the six-month ban]. If we concentrate on the water bodies, which is the heart of the whole fight, we should be able to clear it within the next three to six months,” he said.

Amewu had told the media earlier in October that President Nana Akufo-Addo “thinks sincerely that a lot more needs to be done and we would all have to look into it.”

Per his assessment, the government is still far off from its targets, in the fight against illegal mining.

‘$3m drones have unique specs’

John Peter Amewu also responded to concerns about plans by the government to procure three million dollars worth of drones to aid in the galamsey fight.

With many questioning the amount of money earmarked for the procurement of the drones, Amewu defended the decision and the planned expenses, stating that drones had special features that would greatly boost the anti-galamsey efforts.

“These are quite complex, high-level specification drones that we want to apply. These drones are non-visible when they are up in the air. They are sound-free and they can zoom down to about five meters even at a height of about 3, 000 kilometres. It can go to as far as about 27, 000 feet above sea level. It can do a lot of things and it’s very complex,” he said.

“We want to do things properly. We are looking at alternative ways of financing the two sets we’re getting. The batteries can last for about 14 hours. We can use it for a variety of projects, like the protection of our forests.”

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By: Edwin Kwakofi/citifmonline.com/Ghana

The post Mining ban may be extended by 3-months – Amewu appeared first on Citi 97.3 FM - Relevant Radio. Always.

To boost the revenue component in the fiscal balance computation, donor support, proceeds from divestiture and efficient tax regime are the available options. Of the three, efficient tax regime is the best. Aside revenue mobilization, taxation plays a very cardinal role in shaping the distribution of benefits; it takes from the highest income earners to the people in low economic strata and also allows government to discourage others by altering relative prices thereby encouraging certain economic activities.

Real Issues

Statistically, 6 million people out of the 25 million Ghanaian populations are to pay tax. Out of the 6 million figure, abysmally 2 million people (a figure that is below 50% of the taxable population) actually attempt to pay tax. This condition actually brings to bear the real fiscal challenge of the country and until we take practical steps to salvage this, our clamour for development, self reliance and economic growth will just be a wishful thinking (pipe dream). The local economy is largely informal; over 70% of the labour force is informal and the sector houses 75% of local economic activities. Meanwhile the relative share of tax of the sector has been abysmal over the years (from 21.27% in 1983 to 6.6% in 1999).  For example, in 2007, 88.7% of government revenue from income tax came from the formal sector (PAYE) whiles very infinitesimal figure (11.3%) came from the self-employed and the informal sector. Lack of viable ventures coupled with high unemployment rate also negatively impact on revenue mobilization. Not only that, poor revenue mobilization institutions and their associated inefficiencies resulting to huge revenue loss is still an unresolved issue. Our compromised points of entry (various investigations on boarders by Anas and the Tiger Eye group corroborate this assertion) and sometimes governments own inefficiencies; Poor foresight, lack of appreciation of the Ghanaian tax regime coupled with draconian Acts passed by the Parliament of Ghana militate against huge revenue mobilization hence the fiscal shortfalls.

I am of the total conviction that Ghana’s problems in general exist because of the inability on the part of leadership to soberly do a soul searching exercise and onward fashion a clear target and strategy to boost revenue mobilization. I shudder to fathom why government is suffocating already struggling small scale businesses with tax hikes, I can’t comprehend why people have to go to church for a thanksgiving service for going through the hell at our harbours in order to clear goods. It still beats my imagination and reasoning why an import duty in Ghana is more than the cost of the good bought plus shipping cost (especially for imported cars and machinery). If all these challenges persist, where lays the candour in somewhat audacious visions for industrialization, private sector development, Foreign Direct Investment and overall development agenda?

In reality, I appreciate the difficulties government face after prematurely blowing our low middle income status (though debatable) to the whole world. The grants and donations we hither to received are not forthcoming obviously because we heralded our low middle income status with trumpets and vuvuzelas all for political expediency. To put it bluntly, there is a fiscal gap and we need to find money to meet this gap but I humbly ask (rhetorically though) at what cost do we want to bridge this fiscal gap? This Akan’s adage aptly puts this question in context “s3 wo twa wo nsa we a, na wonnwee nam bia”. To wit, if you amputate your hand and chew, you have indeed not enjoyed any meat.

Window of Escape

I think government will do itself and the country a great deal of service if it explores workable but easy ways of raising revenue without necessarily over burdening the current 2million somewhat loyal tax payers (including importers) with non tax hikes.

Firstly, Government must as a matter of urgency find money to finalize the National identification systems. Credible tax regimes revolve around credible database and credible data makes strategic revenue mobilization decisions easier. For about 71/2 years, Ghana is shamefully unsuccessful in constructing a credible national database. I humbly ask what developmental decisions is the NDPC taking? What informs their decisions? How does GRA strategize and what are the inputs that go into their strategy? I ask these questions knowing very well the challenges the Ghana Statistical Service faces. Until we take the National Identification system and the street naming exercise serious, I think we should forget about efficient revenue mobilization, vibrant banking industry and development in general.

Strict implementation of property and rent tax laws. The law stipulates that at the end of the year, property owners pay must between 0.5% to 3% of the value of their properties as tax. It is the duty of the MMDA’s to see to its implementation.

Rate Impost

Rate Impost (expressed in decimals) is the percentage rate (between 0.5% and 3%) charged on a property’s value. The rate applied to a property is influenced by certain factors. First is the classification of the zone in which the property is situated. The rating authorities zone the city into first, second and third classes, based on certain socio-economic considerations such as existing amenities. Another factor that determines a rate impost is the purpose for which the property is used: thus whether residential, commercial, industrial or mixed use. Even where the product of the rateable value and the rate impost is less than that minimum charge, the minimum charge applies to the property for the given year. The Land’s valuation Authority is to make sure that the market value of all lands and houses are determined at the end of every year. As a point of fact, I cannot recollect the first and last time this government peristalsis performed its duty in the Accra Metropolis. And the intelligent question that follows this sad but altruistic situation is if even market values of houses in Accra are not determined for efficient property tax mobilization, where in Ghana is this followed? And if properties are not valued in Ghana yearly, by what mechanism does the MMDA’s able to levy accurate taxes on property owners? In the year 2007/2008, the A.M.A shamefully and lazily charged a flat rate of between GHS (50 to 100) without conducting any valuation for the proper tax to be levied. This figure is woefully inadequate. For example, if we are to price and average house in Trassaco valley at GHS 500,000 and we levy say 2% averagely as tax, it means the A.M.A. should have taxed GHS 10,000 as property tax. Let’s compare this with the higher bracket GHS 100 they charged as property tax in 2007/2008.

On rent tax, the question is how many landlords pay the stipulated 8% rent tax from their rent proceeds? Do we as a country have the database for landlords and the rental activities that they undertake for all the MMDA’s? I am of the conviction that if we are to think and do things right, property and rent tax has the capacity to shoot our tax revenues by not less than 60 percent.

Finding efficient ways of mobilizing revenues electronically.  In situations, where there is human to human interface, there exist high degree of compromise and corruption. In situations where there is not enough and credible supervision, the tax collectors do what they like. This accounts for the compromised nature of our various points of entry. To avert this, the nation must embrace water tight softwares that make it easier for electronic collection of tax revenues especially at our ports. Again, politicians must be advised that tax mobilization is a serious business that goes to the very route of development hence sending party apparatchiks who have no tax knowledge to the ports to collect taxes only to trouble and frustrate serious businessmen must end. Creation of unnecessary taskforces at our ports only aggravates the situation rather than ameliorating it. There are also devices that can be used to track all monies collected on the field by the officials of the MMDA’s for and on behalf of GRA. This will go a long way to improve collection efficiency thereby reducing revenue loss.

Proactive and thinking government. Government is to solve problems. In fact, the national challenges are enormous but it’s incumbent on leadership to find ways to circumvent these challenges. Over the years, what I see lacking in leadership is the boldness to leverage on its integrity, credibility and purchasing power to get things done. We seem to hastily adopt policies that usually have short term benefits without critically delving into the long term consequences of those policies. For example, I find it very difficult to fathom why mining companies and other multinationals enjoy 5 years tax holiday while these companies are allowed per our laws to repatriate their profits. This is a double dagger for economic assassination. All these are policies that are having a negative impact on the socio-economic health of Ghana. If multinationals are to enjoy 5 year tax holiday, government must take proactive steps to negotiate with these businesses to reinvest their profits either in their businesses or other leading sectors of the economy. This will go a long way to increase employment thereby increasing government’s income tax revenue basket.

Boosting public confidence by ensuring judicious use of resources. There are two cardinal things that influence the actual amount of tax revenue collected in any given year. They are people’s capacity to pay and their willingness to pay. The capacity aspect touches on whether the people levied the tax have the financial muscle to contribute the tax. The willingness aspect is also crucial. It touches on the zeal and eagerness with which the citizenry pay the tax. Public confidence goes a long way to determine the willingness to pay. Although theoretically, the tax payer should not expect direct benefits from his/her tax contribution, if someone pays tax and he/she has reasons to believe that the tax paid are misapplied, misappropriated and recklessly utilized, the willingness to pay subsequent taxes become questionable. For example, if all tolled roads have no pothole challenge, majority of the citizenry (road users) will welcome any road toll increase. Unfortunately, if the citizens feel that the system is not undertaking relevant developmental activities from their tax revenue, they become very skeptic about paying tax. To boost public confidence, government must understand its social contract with its citizens. Thus if citizens play their role by contributing taxes, government in turn must put the tax revenue to judicious utilization.

By: Bernard Owusu Mensah/[email protected]

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