Aviation Industry – Business Live on Joy News (7-3-17)

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Antrak Air petitions Labour Commission over unpaid salaries

my name is Jericho thanks for being with us now we said scandals about mismanagement in certain public and private sector organizations have given rise to discussions about the need for local businesses to adopt good corporate governance practices although they have been some efforts to sensitize the business community the rate of adoption has been slow the situation is also attributed to certain lapses in the system as more in this report the absence of corporate governance structures has been identified as a major contributing factor to the poor performance of businesses in the country over the years there have been efforts to sensitized business owners on the rules practices and processes by which firms are directed and controlled but the rates of adoption has been slow for my deputy senior partner at accounting firm KPMG Randolph babby identified some of the challenges – in the adoption of good corporate governance practices within Ghana we found that the environment there's room for improvement elsewhere you have an institute of directors it is a focal point where companies can go there and interrogate those who are there and find out what they look I'm running a company that is in transport and is there someone was an experienced in it was quality that I can invite to come on the board to help with that aspect so that ask that is your choice of directors I think is an area that we need to grow with it mr. Peppy's spoke to Joy business at a corporate governance dialogue organized by the Association of Chartered Certified Accountants ACCA Ghana in partnership with the Institute of Finance Corporation a member of the World Bank dorothea Agri here T is head of ACCA Ghana beyond producing professionals that understand ethics you also need to create an environment that is supportive of their practice as professionals who believes in who believe in ethical standards so it is towards that end that we have cuts made with the world bank through their ham I see to provide these public forums where we will try to engage the masses to promote understanding of corporate governance to share people's success stories in the area of corporate governance so that we can promote the adoption of corporate governance and then at the end of the day we should have a business environment that allows corporate governance to thrive the copied governor's dialogue is part of a three-year campaign launched in 2015 it's promote improved copied governor's practices in Ghana all right we are turning now to the banking sector where we understand the Bank of Ghana's plan to increase the minimum capital for banks has been approved by government however this approval according to sources has come with some conditions George Fe has more they should handle it keep it clean as clean notes I mean we got features that make them quite enduring in notes but we have to handle them quite quite quite cleanly and in a shawl guy needs to handle them with respect and of the vibe CD note and all of our other notes with respect and dignity because money is money I see dr. Nasir ISA Haku signed on this note there how do you I just asked to the legitimacy governor signing a note when you kind of fit in San Jorge where a feeling on their it's not it's not I do that you can't do that when you do that is fake so look for an authentic governor's signature like the previous governors have then it says what we've done with this no all right so you rather had the governor of the bank of ghana dr abdul nasir who's speaking about saying that the bank who used the most sophisticated feature to prevent counterfeiting of the country's currency the governor is given the assurance as the new $5 city notes finally went into circulation to the after villain at the bank note last friday week analogous to that report form the Bank of Ghana where we're hearing that is plan to increase the minimum capital for banks has been approved by government government according to sources agrees in principle the current will capture requirement for banks is inadequate and must be reviewed however the challenge is how this capital should be increased government is worried about the concerns from local banks that they may struggle to meet the new capital requirement it also has issues with the current great challenges and even the health of some bands there are such being serious distress persons with knowledge of the capital come and see government believes most of these challenges should be addressed before the capital increase is implemented so to see if the Bank of Ghana takes steps to address these issues the new capital comment can even take off from today the Bank of Ghana earlier this year maintained that it is waiting for the new administration's approval before it goes ahead with the increasing kotero comment so with disapproval in principle government it is possible the Bank of Ghana could soon come out with its plan to increase the capital for this year persons with knowledge of this ship you see it could be increased from 120 million Ghana Cedis to 250 million Ghana Cedis and bangs could be given one year to meet this requirement however this will be separate from the economic risk after a comment a regulator is planning to introduce four banks depending on the risk or exposure an increase in capital could improve the financial position of banks a development that could improve access to credit possibly a marginal reduction and cost of credit turning to the domestic aviation sector where we're hearing that aggrieved workers of Antioquia who have not been paid their salaries for the past six months have petitioned the national labor commission joining me in the studio with more on that is a representative of the workers go bet McCrory thanks for your time Gilbert so you have petitioned the national labor commission what's the latest on the petition okay we've been to the labor commission for about five times already and today actually marks the sixth time that we've been to the labor commission the final meeting will have try to today we had a secretary telling us that he's going to write a report of previous meetings and the fact that on track a and the eye representatives have failed to show up to show up and then this directive or this report is going to go to the executive director mr. Bonilla the benefit of those who have been following the issues what are the issues why are you aggrieved yes sir we're seeking three things brought to the company suspending a flight operation and that was in June 2015 staff of untracked airway odd a series of amounts of money one is a transport allowances that are not paid and we also had a stop saving scheme where company deduct salary amounts from our salaries our savings so that in the event that you go in other company you get your money back and then the third one is our salaries which have not been paid during 2015 so is that a 333 seeking before going to the labor commission now we've been to the Commission and like I said the secretary told us that is going to send his report to the executive director of the national labor commission and so we can be caught by a farmer here which is supposed to be today we had a letter from the Commission about a week ago stay tuned with meeting to deal with contract air for a final hearing and same as we went today we're told that he is now going to write a same report Mejia intended to write earlier to the executive director we have been frustrated by the commission of a time there's a sixth time we've been there over the last five months we feel that our issue is not being heard and we nobody would come to an end to this case okay and so what is management of ant requesting about this week we have actually tried to reach a child and even exhausted all diplomatic means to meet our CEO Elijah's mum and dad on two occasions when he'd made promises that is going to come back and then pay whatever amount is orders but now when you call nobody answers that is why we've been to the labor commission and we also being frustrated the whole drudgery or the neighbour Commission is that not listen to us so finally what is the labor commission saying now they asked you to come back two weeks later you ever today already same time today one when we've been told again to come back in two weeks again with the same report that we confirmed from the Commissioner mr. Boddy that he has already gotten our report and harder case we see stating to give us a final letter so we can have pie find out here when today I don't we don't stuff we do not understand why we've been tossed up and down back and forth on the same matter over and over again alright and that's why the fact that you haven't been paid work I still go to work no no no the company is no longer in operation we had call of flight operations I was finished June 2015 but this demands of making money orders before flights were suspended and then also our salads which have not been paid because we have not been told actually out of job and neither has a company come to tell us that the company has collapsed or there's no operation at least for the period I will work with the company what about you as we seek in DPS you understand the transport allowances the staff savings that I've taken over the years a staff work worked with the company for about five ten years and you have all the savings when he started and ran a not picked we are suffering yeah a lot of us who have no jobs at the moment and therefore life is coming in bearable all right thanks very much we hope things get better I give it my Carrizo presentable work I'll give workers of domestic aviation airline untuk who have not been paid their salaries for the past six months moving on the Ghana Investment Promotion Center G IPC is confident the recent interest in the economy by both foreign and domestic investors would start to during the desired results by middle of this year the center has since the beginning of this year are reportedly been inundated with prospective investors seeking opportunities to partner the government in this quest to not only resuscitate the economy but also industrialize it the Finance Minister last week presented government's 2017 financial statement to Parliament with a plethora of tax cuts and promised to create an environment for private-sector growth speak and Rajai business chief executive of the GIP CEO of egwin said visibility studies are already being done by some investors enable them commence work some successes have been choked because I've already done a couple of trips where I met some very interesting people and potentially interested in investing in Ghana I've been to Dubai up into Turkey and I was in England talking to technology investors and they seem very keen incidentally there are quite a number of ghanians in in England who are doing amazing things with technology and who are very interested in coming to Ghana and I'm sure you know that one of the secretaries of trade for Africa and I'm a free Ghanaian he is also very keen and very he's very enthusiastic about Africa and what Africa can do and and is therefore also pretty keen to form great business partnerships and bring investment together so daddy until you come and set up here or they will just share their technology with us no no the intention is that they will invest in this market because they see the potential of the market but first and foremost they see Ghana as that's a great place to do business for West Africa having our democratic credentials the fact that we speak English the fact that we generally have a high level of education relatively high level of education makes kinda interesting and I'm sure you know that Ghana isn't them almost in the middle of the world and therefore you know it's very well positioned six eyes to Europe about eight to nine hours to the US and you can get to Asia through Europe pretty quickly or through South Africa so we are strategically positioned and that makes us give us gives us the sort of roadmap or the or the platform or the foundation on which to build a great investing destination made any commitments so far well it's early yet because there are some that are already looking into the market there are lots of businesses that have come through in fact this this morning I spoke to a South African group a major major major South African group who is looking which is looking to do some very interesting things which one is that you will see when they get here that's good to hear so perhaps maybe by middle of year would see some of these things getting rolled out yes indeed I expect that we'll see some of this is getting out and of course yesterday's budget reading has also given a lot of hope to people in Ghana who we call indigenous and domestic investors who are now thinking that well yes maybe it's right for me to start a business or put some money into the economy and build a business and let it grow and make an and that's all that's well for economy and for our people in terms of wealth creation and socialization so I think we had a good time another business needs to nicey of dialects finance can form centres criticize a review of taxes by Finance Minister can-can operator in an interview with joy business ken Thompson said the currency depreciation would not make any meaningful would not contribute to a meaningful removal this was at the sidelines of 2017 I post-budget seminar being organized by the Ghana Chamber of Commerce and Industry satella Palm Beach Hotel in a car it was another theme leveraging on government's initiatives in the 2017 national budget for the private sector good other taxes that you know they are effect I call them car camo to be taxes I see you don't see me the effect is marginal and it was targeted at very specific area so you have the reduction of the chicken of the 17.5% VHC one airline tickets I remember that I was talking about the initiatives that the private sector could take based on the budgets that's you know there would have been better if it had been done for on VIP or VVIP or even throttle buses I talk about that the tax on five percent tax on sales of houses nobody was being so the effect is zero so it's a nuisance tax then they said well I don't care but really what would make a noise about it is knew that you know they I talked about the tax that the I've talked about that then the seventeen point five percent tax on financial transactions I mean the banks have bigger problems then I also talked about the attacks there's some levy tax on something that the churches where you know we're paying I mean those were for the pastors that prayed for Renard would buy really I mean makes no difference so let's put that to aside then I talked about the stuff just the taxes that could actually make a real difference to private sector so on import duty for spare parts the special levy the energy and also the petroleum notice on the petroleum but in any case since June last year to now the city has depreciated by nineteen point three seven percent so really unless your cost has combined by ninety point three percent percent really yeah neither here nor there you are neutral the minister's representative makes the point that in spite of the slashes we are looking at exemptions as well we're tightening up on exemptions so the two billions it is that exemptions were giving away we are going to close in on that mr. Bannon I can only tell you what I've been told and all the things I'm telling is from the budgets I haven't made anything up so if he says is going to tighten up or loosen all I'm telling him is that those tax the effect of those taxes is zero the effect is zero but no impact at all of course is 0 but currency depreciated by 95% percent how do you aspect and I'm saying that the the MPP was elected on a wave of euphoria one of the things I said will do is cut taxes it has him not you but that's fine I'm not saying is therefore I'm saying that you know the private sector cannot take much comfort from the current tax relieves the helping given to them now teego's current general manager or she Mothman is to leave the new organizations we formed from the air tell Teague major joy business is learning this is part of redistribution of management following the major which was announced last Friday by the parent companies of both entities here small Tiger has taken the CEO portfolio while Sato is to appoint the board chair passing and the chief financial officer of the merged entity joy business sources say this is part of the agreement between the two mother companies in the process better deal the two entities are to have equal ownership and governance rights in a combined entity this 50-50 deal is said to have largely informed their choices for the various executive and non-executive positions many of which would be known in due course it is even unclear which person is from ito would occupy the chairperson and chief financial officer positions dry business has also learned that the best talent from both companies are to be retained to drive the combined entity towards profitability but until the deal is approved by the regulatory institutions a process expected to take months both Ito and Teague will continue to operate under the leadership of their current CEOs you're watchin business life we'll be right back after this week with our interview of the day welcome back and straight to our interview of the day finance house ivory has denied pursuing si si in court despite receiving full payment of debts owed by the insurance firm the this was media reported IV finance is forcing si si insurance to pay some 500 million cities for 13 million City debt now speaking to Joy business after news conference today group chief executive of CDH Romano a do sarkodie said si si isn't me yet to get the original amount minus the interest built up interview of the day is brought to you by echo Bank V pan-african Bank there's a guy in black and red and making all sorts of allegations especially against us that we have received full payment 91 million 91 point something million Ghana Cedis as payment for from si si and we are still pursuing them in court and have you received that mentally no George we categorically denied that and in fact when we just have to check from a sizes account to see whether such monies have been paid to us we have not received any set money George when we signed a consent judgment and we went to court to enforce it they took a stay of execution the judge ordered them to pay 19.3 into court and that's what we have received 19 million no more we have not received any 91 million at all at all no one would like that going for it was the was the wafer because now we understand the issue is in the Supreme Court yes it's really a matter for this IC board to determine we are prepared any day to take it out of court I mean they have to redraw it out of court and sit down around a table with us and resolve this issue we think it is the best place to solve a business problem and not end up in the media as we have been forced to do now even in court because court is a winner-takes-all position but a negotiated settlement is Sunday we all agree to survival of the company and very interesting because from almost at eighteen million dollar is sorry million Ghana Cedis debt is now ballooned to almost half a billion Ghana now explain to me how the how we that has happened okay first is four years old so take a 14 million city facility and add five point five to it five point five percent for six months then after six months when it goes into default begin to apply to 18 percent 18.5% to it on accumulative basis and see how quickly the money rises that's why we've reached there was calculation you put the calculator together you do it you see the numbers it shows the way things are going as an out of come out of court an avenue to go now because the issue some i see that i struck too long it's not good for sse there is a leicester company and even us were being a finance company yeah I agree III I think we should have settled this long ago and indeed any day they call us for a meeting we are prepared to come sit around a table and attempt to resolve this matter I think we are prepared to do it we don't we don't think they should lead to necessarily lead to a Supreme Court decision that we want to implement fool if they call us today that look we think we should have an out-of-court settlement and resolve this matter we will certainly want to sit down and resolve it and that's business life tonight my name is Darrell called the small business news on our website my joy online.com forward slash business stay tuned to join us

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