Day: May 4, 2023

The Business Africa Consulting Group (The BAC Group) launched the 2023 All Star Festival on Wednesday, 3rd May at Eusbett Hotel in Sunyani in the Bono Region.

Following the success story of the first edition in June 2022, the All Star game which has evolved into a festival will be hosted by three Brong Ahafo regions of Bono, Bono-East and Ahafo.

All three regions will have the opportunity to take part in the All Star festival from Bechem to Dormaa with a series of activities scheduled from the 20th -22 June, 2023.

Chief Executive of The BAC Group, Dr. Ernest Koranteng, explained that the decision to organize the 2023 edition of the All Star Festival in Brong Ahafo is to celebrate the contributions of the region to Ghana football over the decades.

“ The people of Brong Ahafo have been contributing immensely to football across administrators produced, footballers, clubs and the role of the fans and investors in ways that are easily unequalled” From iconic Captains of the national teams such as Kwasi Owusu “Power House”, Kwasi Appiah “Mayele”, Alex Opoku who led Ghana to a first Fifa World Cup success (Black Starlets 1991) and Asamoah Gyan “Baby Jet”.

“And the top scorers in the history of Ghana football, the black stars, are all from this region: Asamoah Gyan and Kwasi Owusu’’

The All Star 2023 in Brong Ahafo will have other activities including a float on the principal streets of Bechem in the Ahafo region on the 20th of June, followed by The Sports Business Series (SBS), a conference on Football Business powered by The BAC Institute in Sunyani.

The Festival will undertake a CSR project in Techiman in the Bono East Region. The town’s popular TACO Park will be provided water supply to improve the pitch and widen access and use to many more footballers in the region.

A gala night will also be organized on 21st June in Sunyani to honour legends who have contributed significantly to the success of football in Brong Ahafo and Ghana since 1957.

On the 22nd June there will be a special durbar to welcome the All Star players led by Captain Andre Ayew by the president of the Bono traditional council, Osagyefo Oseadeeyo Nana Agyemang Badu II in the morning at the Abanpradease Palace in Dormaa Ahenkro.

The people of Brong Ahafo will be in for a treat later in the day on 22nd June when a select side of betpawa premier league and Access Bank division one league players from 16 Brong Ahafo clubs take on an All Star side led by Captain Andre Ayew and coached by international guest and former Chelsea and Ghana manager, Avram Grant in a competitive yet ceremonial game as the climax of the All Star Festival. The All Star Game will be played at the Nana Agyemang Badu I (NAB I) Park in Dormaa Ahenkro.

Chairman of the Brong Ahafo regional football association, Mr. Ralph Gyambrah, commended the BAC Group for accepting his invitation to hold the second edition of the All Star Festival in the Bono regions.

“In this festival, we will be touching base with all our three regions. It is very significant. ‘’

A ten-member local organizing committee was officially inaugurated at the launch by Mr Frank Nelson, a director of Accra Hearts of Oak.

The members include Mr Ransford Antwi, Mrs Evelyn Nsiah Asare, Mr Bismark Oppong, Mr Precious Semevoh, MrAlexander Obeng, Mr Alexander Ababio, Miss Vida Yenube, Mr Felix Obeng Fosu, Mr Dickson Kyere-Dua Mr Amo Gyamfih.

The All Star Festival is themed “the official off-season football gathering” that brings together the various stakeholders in the football ecosystem across local and foreign-based footballers, male and female, clubs, investors, fans and the general public.

Source: Ghana Web

A group calling itself the Locked-up Investment Holders Forum (LIHF) has expressed its displeasure about what it describes as a lack of action on the part of the central bank to protect the investments of its members.

“We wish to register our utmost displeasure about what we see as a lack of action on the part of BoG, to act to protect our investments and ensure that we are able to access our funds,” a statement issued by the group signed by its convener, Dr Adu A. Antwi said.

According to the group, some Finance Houses and Savings & Loans Companies (FHSLs) “licensed by the BoG have been unable to meet the interest and or principal payment demands of their customers for some time now, and in most cases for about three (3) years.”

It highlighted reasons for the FHSL’s inability to meet the demands of their customers including: “Lack of patronage of their services arising from the loss of confidence in the banking and financial services sector following the banking clean-up exercise; Unprecedented withdrawals they experienced at the beginning of the clean-up exercise virtually creating a run on their operations; The inability of their loan customers to service their loan facilities due to the general deterioration of the macro-economic environment in the country and the effects of COVID 19 on their businesses; The government’s inability to make payments against loans granted to government contractors against their Interim Payment Certificates,” among others.

The group noted the BoG must appreciate “the negative effects on public confidence in the Ghanaian financial market, due to these ‘locked-up’ investments.”

It stressed that when “customers of some Banks, Microfinance Institutions and FHSLs faced similar challenges in 2017, the BoG stepped in to settle the deposits and investments of customers of the affected institutions.”

The group wants its members to be accorded the same treatment.

“We believe that we are entitled to, and should be given the same treatment,” the group indicated.

The LIHF also expressed disappointment about the current developments.

“We are therefore worried and disappointed that the BoG has created a situation reminiscent of regulatory inertia and has neglected its regulatory responsibilities owed to investors in these affected FHSLs, allowing us to suffer undue financial hardships,” it said.

It continued: “We find the silence of BoG to our plight as gravely wrong and unacceptable. Apart from the personal hardships and pains caused us, despite planning for our lives to avoid such hardships and pains, the silence does not promote the culture of saving and investing in the country.”

The LIHF, therefore, requested the “BoG to take immediate steps to work to secure” their “‘locked- up’ investments with the affected FHSLs” to enable its members to access their funds.

Source: Ghana Web

Sunon Asogli Power (Ghana) Limited Company (“Sunon Asogli” or the Company), as the largest Chinese investment in Ghana, and the first Independent Power Producer in the country, has ensured that in all its engagements and operations, the company respects and abides by the laws of Ghana.

This is why after over 15 years of existence, stories relating to the company have been progressive. We have always cherished the Ghanaian people and continue to do our best for them through our reliable and efficient power generation. As a multinational, it is in our best interest to work and operate in a serene and lawful environment – an environment which would ensure the protection of our investment and, above all, provide the hard-working staff of the power plant the best of safety and security.

It is a fact that every private investor is in business to make profit. At Sunon Asogli, however, we put more premium on friendship, and the maintenance of a working and living environment which allows for win-win outcomes. This is the spirit that drives our corporate strategy.

Sunon Asogli is not and has never been against unionization. Indeed, the company is aware of the right of our employees under the 1992 Constitution of Ghana and the Labour Act, 2003 (Act 651), to join a union. The issue has been about the procedure and approach adopted by the Ghana Mine Workers’ Union (“GMWU” or “the Union”). It has been our position right from the onset when the Union wrote to us, that we cannot enter into an agreement or negotiate with people we do not know, and that when the Labour Law talks about ‘‘THE WORKER’’ it is referring to a particular individual.

We therefore requested that the Union should furnish us with the list of workers who had applied to join the Union, but for close to two years, the Union refused. We must emphases that our insistence on having the list to determine the classes of the employees the Union were referring to, their departments, their job descriptions and organizational structure of the company is underpinned by section 79 subsection 2, 3 and 4 of the Labour Act, 2003 (Act 651). So, we did nothing wrong in asking for the list because without it, how can we determine the requirements of subsection 2, 3 and 4 especially section 2 of the law?

We were also of the view that the way and manner in which the Collective Bargaining Certificate (CBC) was issued by the Labour Department was improper, and that the issuance of a CBC is a foundational procedure for any engagement between Sunon Asogli and the Union. We cannot therefore gloss over a non-compliance in its issuance. The Company therefore, through our Counsel, wrote to the Chief Labour Officer to look into the matter and subsequently withdraw same. The company up till date has not received a response to the said letter.

The Union finally submitted a list of 68 persons on February 9, 2023. The said list included past employees and others who have indicated to the GMWU their desire to rescind their decision to join the Union.

On February 17, 2023, just a week after the submission of the said list, the Union under the leadership of its General Secretary, Deputy General Secretary and 34 employees of Sunon Asogli conspired, organized and participated in an unlawful and illegal industrial action by gathering at the parking lot of the Company, shouting and chanting. This conduct disturbed the peace and tranquility within the premises of the Company. To add insult to injury, when the Company queried the 34 employees who participated in the illegal and unlawful act, the Union wrote to the Company on February 28, 2023, saying the Union should be held responsible.

This is a strong indication of the Union’s arrogance, and the intimidatory and aggressive approach by which they operate. That attempt by the GMWU to take the law into its own hands is unacceptable and would not be countenanced. Unions do not manage the day-to-day administration of a company. It is important for the public to know that by the provisions of the Labour Act, section 131, and by the practice in Ghana’s industrial relations, it is forbidden for trade union officials to burst into a company without the permission or consent of the employer to conduct Union activities.

Indeed no employer would tolerate Union executives entering into a serious security zone and sensitive national infrastructure like Sunon Asogli Power plant and calling workers for a meeting without informing the company or obtaining its permission or consent.

Sunon Asogli believes in doing things in an orderly manner, and it is the respect for due process that has sustained the Company over the years. The Company currently has two unions, one which is enterprise-based with majority in terms of membership (over 60% employees) and the GMWU, with minority membership (less than 25% employees). One cannot therefore tag Sunon Asogli as anti-union.

The attempt to coerce the majority into agreeing to join GMWU through any means possible is not acceptable. The minority of staff who have agreed to join the GMWU cannot lead or decide for the majority. We shall continue to respect the choices made by staff so far as they follow due process and are in compliance with the law.

The termination of the employment contract between three former employees of the Company and the Company had nothing to do with their joining the Union. The Company believes that an employment contract is not servitude and either party to the contract may terminate the contract at any material time, in accordance with the provisions of Act 651 and the contract.

After that unlawful conduct of the Union, they decided to hide under the TUC to paint the company as an anti-union to the whole world and what is even more surprising is the conduct of the TUC. One would have expected that the TUC Secretary General, the overall boss of the trade unions in Ghana and whose affiliate is GMWU will write to the company to engage and hear the side of the company, understand the issues and therefore the role the TUC could play. They decided to follow the Union and painted the company as anti-union, but members of the public are discerning and should be able to determine whether the company is anti-union or the GMWU is an aggressive, uncompromising, intimidatory Union organization.

We are disappointed in the Trade Union Congress (TUC) as a mother body, particularly by its press release of March 27, 2023 and the subsequent speech of the Executive Secretary on May Day 2023, which were laced with threats, falsehood, and distortions, with the sole intention to injure the reputation of Sunon Asogli and to lower the Company in the estimation of right thinking members of society generally and in particular to expose the Company to hatred, contempt, ridicule, and opprobrium.

The inability of the TUC to hear from both sides before jumping to conclusion is worrying. The National Labour Commission, in our last appearance on March 15, 2023, advised the parties to stay all actions including commenting on the issue in the media, but the GMWU has hidden under the umbrella of TUC and has done just the opposite, all in the quest to intimidate Sunon Asogli.

In due time, we will invite the media to the Sunon Asogli Power Plant so they can experience first-hand how a normal day in the Company looks like.

We will continue to abide by the law and use the right procedures to achieve competitive advantage. This in our view would continue to make us reliable and efficient at all times.

We trust in the process ongoing at the National Labour Commission, and it is our hope that an amicable resolution would be found to bring finality to the issues. The Company is grateful to the Honourable Minister responsible for Employment and Labour Relations, the Honourable Minister responsible for National Security, the Honourable Deputy Minister responsible for Employment and Labour Relations and the Chief Director of the Ministry of Employment and Labour Relations for their interventions.

Source: Ghana Web

There has been on-going debates as to whether or not; firms and corporations should hold excess cash on their balance sheets or distribute them to their shareholders…

Looking at the pros and cons in terms of shareholder wealth maximization among others, many have urged that holding excess funds is of great benefit to both the firm and its investors, whereas others believe that holding excess is simply holding on to a negative debt. This they argue, does not result in increase in earning per shares but only result to loss of funds due to currency floatation.

There are a number of factors that cannot be overlooked by larger corporations when it comes to excess cash.

First of all, corporations hold excess cash in order to allow them spot future opportunities, take advantage of these opportunities with the backing of the availability of cash reserves and make future investment without needing to add debt to capital structure.

According to the investor’s Business Daily, American multinational conglomerate; Alphabet Inc. holds a cash reserve of $103.7 billion, while tech giant Apple Inc. also holds a net cash of $90 billion as at the year 2020. Other large corporation like Facebook, Microsoft, Cisco systems, Nvidia and Paypay have been reported to hold huge net cash.

The obvious reason these multinational corporations keep this huge excess cash is to allow them invest in new opportunities such as buying newer firms which might potentially be a threat to their level of profitability in the future.

Facebook in 2012 bought Instagram, with an employee strength of 13 people, for a shocking sum of $ 1 billion, though it was a shocking amount to pay as at 2012, of which many spoke against.

However, Facebook saw Instagram as a potential threat, thus the takeover. Instagram as at 2021 has over 1 billion users and contributes over $20 billion of Meta’s annual revenue.

This obviously increases shareholder wealth. If Facebook now Meta group in 2012 distributed its cash in hand and failed to hold excess cash in anticipation of an opportunity, it would have simply walked away from making this profitable investment and thereby losing the opportunity to eliminate the threat of Instagram.

Though one might argue that excess cash is a negative debt, in the case of unidentified industries, which I agree to be true such that corporations need not hold cash but should use debt to finance new opportunities or issue equity in order to raise capital to finance profitable ventures. This is because, by adding debt in a recapitalization, a company is likely to increase its market value which further increases the company’s earning per shares as well as benefits from tax shields.

When corporations fail to hold excess cash which eventually become essential cash, in an event that the corporations seeks to undertake a new investment, it will have to add more debt to its capital structure to enable it finance such projects.

Building up lots of debt only does one thing to a corporation, which is increasing the chances that the firm runs into situations where it has no sufficient cash to pay its obligation thereby becoming a financially distressful company.

An instance is the case of the collapse of 178 year Aircraft Company Thomas Cook. Thomas Cook, racked up a debt stock of $1.7 billion after it begun a $750 million recapitalization, which later became $900 million, then $1.1 billion.

Though, a company might not have to pay taxes on interest payments, and increase its market value, when it picks up debts, building up more debt as stated opens the door to a firm becoming financially distressed, which results in corporations losing cash flows, in legal expenses payments, courts and advisory fees, liquidation of assets through fire sales.

A company in this position will lose some of its talented employees, loss of customers, and suppliers refusing to deal with the business or supply on account.

Competitors may also take advantage of this situation and launch a price war, further worsening the ability of the firm to become profitable.

It is therefore wise that the Company should hold excess cash in anticipation of a new opportunity.

The second reason corporation should hold to excess cash is because as trade- off theory postulates, a firm optimal cash holdings is usually determine by a balance between the cost and benefit of holding excess cash especially in situation where cash flows are uncertain.

According to the Harvard Business Review , Non U.S financial corporations hold just over $4 trillion dollars in cash and according to the latest flow of funds estimates, corporations held up to $2.7 trillion dollars in cash in 2010.

Holding excess cash provides good buffer during times of uncertainty or risk of financial markets. This offers protection to the firm against adverse cash shocks.

Therefore, holding excess cash will offer the firm the ability to finance critical projects.

Also it is important for company’s to hold excess cash rather than distribute them to shareholders, to avoid paying huge taxes.

In 2013 Apple in its efforts to avoid paying huge taxes, held over 90 % of its $252 billion profits in cash, because this profit is subject to corporate income tax as soon as it is repatriated back to the U.S. Apple by holding this profit in cash according to the institute on taxation and economic policy avoided paying $78.6 billion in taxes.

Source: Ghana Web