Eliminate the debt ceiling Pg
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By Willem H. Buiter
THURSDAY 2 February 2023 Issue No. 10
A NEW THINKING
SSNIT refutes US$17.5m Intercity STC loan guarantor Report By Eugene Davies
The Social Security and National Insurance Trust (SSNIT) has flatly rejected the claim in the 2020 Auditor-General’s report, citing the trust as having served as a guarantor to transport company, Intercity STC for secure a loan of US$17.5m from ADB Bank.
(PAC)sitting on Wednesday, when the management of SSNIT together with its sector minister, of Employment and Labour Relations with added oversight role of Pensions, Ignatius Baffour-Awuah appeared before the committee at Parliament House.
According to the 2020 Auditor-General’s report, SSNIT guaranteed ISTC to take a loan of US$17,500,000.00 from ADB Bank to procure 100 Buses to augment their fleet. The implication of the guarantee is that, in the event of ISTC’s default of the loan, SSNIT could be called upon to pay.
A member of the committee, Sam George [MP, Ningo-Prampram] sought to enquire from officials of SSNIT as to how they have served as a guarantor to ISTC as captured in the audit report.
These revelations came up at the Public Accounts Committee
In response to the question, the Director General of SSNIT, Dr. John Ofori-Tenkorang stated that the trust never guaranteed a loan of US$17,500,000.00 from ADB Bank for ISTC to procure 100
Buses to augment their fleet. “I am challenging the audit report to say that, we have not signed any guarantee to guarantee the facility that was taken by ISTC from ADB. In fact, when that facility was entered into, ISTC came to SSNIT to give a loan and we declined, the SSNIT board declined because there was outstanding loans that had not been paid so it would not have been prudent to go and extend a further loan. So, they got the ministry to help them get the loan from ADB and what we had to do was to give a no objection -so we are not, and there is no guarantee document that SSNIT has signed to guarantee that loan and the auditors can produce that document if such
exists,” he said.
advances given to ISTC. As at 31/12/19 ISTC did not make payments on any Further, audit finding disclosed of the 3 loans it contracted. that there was the need to protect SSNIT’s investment in Intercity But responding to the auditor’s genSTC totaling GH¢49.5m. eral report, the Deputy Director-General in-charge of InvestThe report also indicated that its ments, Mr. Kofi Osafo-Maafo, said review of the performance of the they are in discussions with the Intercity State Transport Compa- ISTC’s board on how the loan will be ny (ISTC) Ltd disclosed the follow- repaid. ing challenges of the Company; The ISTC Company has not pre- “SSNIT continues to engage ISTC sented its audited Financial State- Management with respect to the rements over the years to SSNIT as a payment of the loan and has asked majority shareholder. the company to submit a repayment plan. The company is yet to submit SSNIT has also not received any their plan for the Trust’s considerdividends from ISTC on their 80% ation and further action given the majority shareholding invest- lack of visibility in the current ment. The trust did not recover market conditions. various loans and shareholders
LEADTIONARY year-long series begins today.... 50 leaders talk leadership and Ideas with Bishop Titi-Ofei DAME ARLENE FOSTER
RT. HON SIR JEFFREY DONALDSON MP
ARCHBISHOP NICHOLAS DUNCAN-WILLIAMS
MRS. LUCY QUIST
PROF. EMMANUEL KINGSLEY LARBI
LORD DAVID TRIESMAN
PROF. STEPHEN ADEI
PROFESSOR CEDRIC BELL
DR. MAMIKO REEVES
Bishop Gideon Titi-Ofei
PROFESSOR JACKIE McCOY
PROF. MRS. GOSKI ALABI
DR. SAM ADEYEMI
Renowned economist and academician Prof Steven Adei will be speaking at the maiden edition of the LEADTIONARY webinar series, hosted by Bishop Gideon Titi-Ofei, on February 4th this year. The event, which is expected to feature about 50 influential global
Prof. Stephen Adei
leaders in a year-long webinar series, will witness the former Director-General of National Development Planning Commission shares his views on leadership. Prof Adei, an exemplary leader, who has demonstrated his leadership skills in both academic and gover-
3 PROF. ABEDNEGO FEEHI OKOE AMARTEY
ACE ANKOMAH
DR. MRS. ELLEN HAGAN
MRS. CHARLOTTE OSEI
BISHOP N. A TACKIE YARBOI
DR. EKWOW SPIO-GARBRAH
MRS. PEARL ESUA-MENSAH
ARCHBISHOP CHARLES AGYINASARE
MRS. PATRICIA OBO-NAI
Positive signs for Ghana’s tourism industry in 2023 H.E. MAJ. GENERAL FRANCIS ADU-AMANFOH
PROFESSOR SAMUEL NII ODAI
HON. NII AYIKOI OTOO
PROF. JOSEPH K. ASAMOAH-GYEDU
By Philip Gyebu
There were positive signs in last year globally as tourism recovery accelerated to reach 65% of pre-pandemic levels. Covid-19 hit hard the tourism industry, how-
More Speakers
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ever as predicted, there was going to be a rebound because tourist cannot and will not stop travelling. A friend was telling me he financee was in Ghana from the US last December. I also had three family relation travelling to Ghana last month. Whiles at the airport to