Balance from Sale of 5 SOEs will be retrieved-Finance Minster Assures

Mar 2015

The Minister for Finance and Economic Planning, Seth Terkper, has disclosed that the Board of the Divestiture Implementation Committee (DIC) has initiated a  move to retrieve an amount of US$21.3 million and GH¢4 million from the sale of five State Owned Enterprise (SOEs) to private individuals and institutional investors.
The assets, according to him, were sold between 2009 and 2013 at a total cost of US$30.7 million and GH¢6 million.
Mr Seth Terkper disclosed this on the floor of Parliament yesterday when he appeared before Parliament  to respond to a question filed by Mr. Osei Bonsu Amoah (NPP, MP Akuapim South) on the  number of state owned enterprises divested since 2009.
He informed members that the SOEs   are Tema Printing Press, Ghana Consolidated Diamond Company, Subri Industrial Plantation Limited, GIHOC Footwear Company Limited, and GAMA Film Company Limited.
Mr Terkper explained that the Tema Printing Press was divested for a purchase price of US$3 million, out of which US$1.1 million had so far been paid, leaving a balance of US$1.9 million.
“A total of US$3.2 million out of a purchase price of US$17 million for the Ghana Consolidated Diamond Company has been paid”.
“Mr Speaker, Subri Industrial Planation Ltd was sold for US$10 million with US$5 million paid. GIHOC Footwear Company Ltd was divested to a joint venture for US$700,000, out of which US$70,000 has been paid, leaving a balance of US$630,000,” he said.
On the divestiture of the GAMA Film Company Limited, he said the company was sold for GH¢6 million with GH¢1.6 million paid, with a balance of GH¢4.4 million.
He said the board of the DIC had directed the secretariat to present a recovery plan for all outstanding amounts and that the amounts would be paid into the Consolidated Fund, adding that no amount has been transferred into the Consolidated Fund as required by the Financial Administration Act.
Mr Terkper, in a response to another question on whether the government made allocations in the 2014 budget to subsidize petroleum products,  indicated that the policy direction on petroleum subsidies in the budget was to adopt the automatic petroleum price adjustment formula.
He said the government’s plan to adjust petroleum prices at regular intervals was to minimize the adverse impact that the subsidies would have on the budget, business operations and consumer activities.
“In the original 2014 budget, amount of GH¢50 million was estimated to be spent on petroleum subsides. As a result of the delay in the adjustment of petroleum prices in the early months of 2014, subsidies accumulated and the supplementary budget made provision for an additional amount of GH¢277.6 million to cater for the subsidies,” he said.
Mr Terkper noted that a total allocation of GH¢327.6 million was made in the 2014 budget for petroleum subsidies.
Source: ISD (Gilbert Ankrah & Raymond Kwofie)