Wednesday, December 22, 2010

Is Gov't Losing Fight Against Poverty?

By Felix Dela Klutse


The ugly trend of poverty is forcing some families in Ghana to cut the amount and quality of food they eat each day.

Meat, a source of protein, is no more an option in the menu of many families. People now opt for less nutritional meals – just to put something in the stomach— which has a bad effect on a child’s growth. It is therefore not surprising that about 22 per cent of children in Ghana below five years are suffering from stunted growth while one out of every nine Ghanaian children die of malnutrition before the age of five.

Government figures indicate a reduction in poverty from 39.5 percent in 1999 to 28.5 percent in 2006 but in absolute terms, poverty is invading the country like a swarm of locust. Ghana, a middle-income country and a signatory to the Millennium Development Goals, has less than five years to halve extreme poverty. Conditions are worst in the rural areas where a sizable number of Ghanaian still live on less than one dollar a day.

The situation is driving a growing number of children onto the streets of Accra with many young girls resorting to prostitution as a way to escape from poverty and cater for their families. In some extreme cases, parents themselves force their children especially girls out of school so that they can look for jobs to support the family. This trend, according to stakeholders, spells doom for Ghana’s economy in the future.

Who are Ghana's poor people?

Majority of Ghana’s poor are in the rural areas where close to 70 per cent of the population resides. Business Guide’s visit to places such as Northern, Upper East, Upper West, Volta, Central and Western Regions where livelihoods are more precarious, saw how people living in those areas are finding it very difficult to make ends meet. The ugly trend is most severe among children, disabled, old people and food crop farmers, who are mainly traditional small-scale producers. About six in ten small-scale farmers are poor, and many are women. In addition to their domestic chores, these women are responsible for about 60 per cent of agricultural production.

During a visit to Mandari in the Bole District, from where Vice President John Mahama hails, dozens of children could be seen playing in the dust. But these children have no biological parents to care for them. Looking after them is their grandmother, Chamunu Mari, a 66-year-old widow, who lost her son and his wife through sickness, leaving behind seven orphans under her care. She lives in one of the most dilapidated single rooms in the community with her seven grandchildren. The building could best be described as a death trap. Mari is unemployed and finds it very difficult to eat.

“My grandchildren and I have to eat once a day,” she said with tears streaming down her cheeks. She cannot even afford to buy soap. She was therefore using sand and water to wash her cooking utensils when this reporter visited her house.

“Poverty was there before I was born and it has become part of life. Poverty is going empty with no hope for the future and getting nobody to feel your pain. It is when your dreams go in vain because nobody is there to help you. Poverty is watching your relatives die in pain and in sorrow just because they couldn't get something to eat. Poverty is hearing your grandmothers and grandfathers cry out to death to come and take them because they are tired of this world. It is watching your own children and grandchildren die in your arms but there is nothing you can do,” Mari explains her situation.

Mari is not the only person in this state. Abdullah Mohammed is 15 years old and lives on the streets of Bolgatanga, the capital of the Upper East Region. He is a cobbler.

“Life in the village where I was born was very hard so I decided to follow my elder brother to Bolgatanga after my father died, with the hope of getting something better to do and send money to support our mother back home but unfortunately she also died three months after we left the village. So I was here with my elder brother all this while until he also died. I don't want to go back to the village because there is nothing better to do over there. I will like to go back to Senior High School but it is very expensive and I can't pay my school fees.”
Mohammed said business was good when his elder brother was alive but now people think he was too young and that he can't repair their shoes the way his brother did so they don't bring their shoes to him anymore.

“Life is hard but what can I do? I am not the only person like this. There are many children like me or even worse who live on the streets. I don't smoke but most of the children living on the streets smoke wee which makes them strong. Most of them are thieves and they rob people. I don't steal and I don't smoke. I only shine and repair shoes for people," the soft-spoken boy stated.

During our visit to the Western Region, this paper met Mr Ernest Nyamekeh who lives at Ankobrah, a fishing community. He is a widower, a virtually-impaired man who looks after two children. Most of the houses in this area are mud houses roofed with thatch. Since the area is also closed to the Ankobrah River, anytime the river overflows its banks, the place gets flooded and water enters his room. This has affected his health as he has scratches all over his body.

Forty-five-year-old Nyamekeh and his children live in a mud and thatch roofed house. The house contains three single rooms. Aside Nyamekeh and his children, is his elder sister, Akua Amoah, 55. His wife, who was the family’s sole provider, died after a short illness two years ago. After her death, Nyamekeh ventured into pillow-making to enable him to take care of his children but the business collapsed. Since then, he and the children have to depend on members of his household for survival.

Though, the two kids were also in school, Nyamekeh finds it difficult to provide them with their basic necessities. Sometimes, the children have to go to school on empty stomach.

“Poverty has really eaten deep into our lives. We sometimes eat twice a day,” he wept uncontrollably when narrating his ordeal.

In the Central Region, this reporter visited the Amisakyir community, a suburb of Cape-Coast which is near the Cape-Coast sea shore. Teenage pregnancy is very rampant in this area. Since most of the inhabitants here do not have places to sleep, they sleep on the roads in the night. Apart from the community being a teenage pregnancy zone, this paper observed that most of the children born in the area are disabled.
Aba Esibu, a 22-year-old single parent with three children, lives here. Out of Esibu’s three children, one is disabled and a sickler. Esibu does not know the whereabouts of the father of the three children. She and her children stay in a dilapidated family house about 30 people whose conditions are nothing to write home about. She single-handedly takes care of the children, though she sometimes receives help from her aged-mother and other philanthropists. Esibu’s children are not in school because it is not easy taking care of them. None of them is also registered with the National Health Insurance Scheme (NHIS) as at the time of filing this story.

Araba Kitiwa is a 22-year-old mother of three who also lives in the same community. Just like Esibu, Araba and her children also live in a cracked family house close to the sea. Araba’s husband rejected her because one of the children is a disabled. Since then, Araba said she has never heard of him again. Life becomes very difficult for her as she has no work to feed herself and the three children. Araba, her children, her sister and her mother, sleep in a single room.

“We find it very difficult to eat sometimes. We have to cut back at the quality and quantity of food we consume a day,” she said.
The story was not different from the Volta Region, where former President Jerry John Rawlings comes from. Here, majority of the population still wallow in extreme poverty even though government claims there has been substantial decline in the incidence.

Ms. Ahiable Sodahoe, 50 years, is a member of Adagbledu community, a suburb of Dzodze in the Volta Region. The major occupation of the people in the area is farming. She lives in a household of 12 members occupying two dilapidated single rooms. In the same household, is the husband of Sodohoe aged 75 years. Apart from the dilapidated rooms, other places in the house such as kitchen and bathroom look nauseating. Members of the household get their source of drinking water from a well which is not hygienic for human consumption. Sodahoe had three children all of whom have given birth and left their children in her care. All the mothers of these babies are nowhere to be found, she said. Sodahoe has to credit food before the entire household could eat.

“I am in abject poverty because I don’t have the money to set up myself and feed my family,” she added.

Atisu Butsomekpor Anthony, a 70-year-old man is another poor person in the region. The name, Butsomekpor literally means “think about tomorrow”. He lives at Aflagatigorme, a suburb of Aflao. Butsomekpor, who was a fisherman, could no longer go fishing because of his age. Consequently, he has to depend on benevolence to survive. He, together with his 15-year-old son, lives in a mud house roofed with thatch. The house has no place of convenience. Butsomekpor revealed that he and his son eat ‘gari’ (popularly known as food for the poor) most often to sleep.

“We sometimes prepare food without meat or fish. Had it not been God, my son and I would have been dead by now. Nature is not fair to some of us at all. I know a lot of people who are going through untold hardships. Consequently, they are forced to drop their children out of school,” Atisu lamented.


Why are Ghana's rural people poor?

According to government’s poverty reduction strategy paper (GPRS II), low productivity and poorly functioning markets for agricultural outputs are among the main causes of poverty especially in the rural areas. The document said small-scale farmers lacked technologies and inputs such as fertilizer and improved seed, which would increase yields.

This paper observed, during the visit, that only a small proportion of farmers in rural areas of the country have access to irrigation. Land ownership and land security are regulated by complex systems that vary widely. Many farmers lacked rural infrastructure and equipment for storing, processing and marketing their products.

Most inhabitants said rural infrastructure in Ghana had been neglected, while investments in health, education and water supply had largely been focused on urban areas.

“The government could play an important role in making farming a profitable business through access to financial services, farm inputs and linkages to agro processors and traders,” Ibrahim Siedu, a farmer in Navrongo stated.


What Is Government Doing To Help The Poor?

In March 2008, the government introduced the Livelihood Empowerment against Poverty (LEAP) programme as a social intervention to provide financial assistance to some extremely poor households in Ghana. More districts are expected to be added to the existing 76 districts nation-wide, which are already covered by the programme.

Beneficiaries of this social assistance scheme, orphaned and vulnerable children, persons with severe disabilities without productive capacity, and extremely poor persons above 65 years, receive free cash ranging from GH¢8 to GH¢15 every two months.

One eligible beneficiary in a household gets GH¢8, two eligible beneficiaries get GH¢10, three get GH¢12, while four or more beneficiaries in a household receive GH¢15.

A survey by BUSINESS GUIDE to some of the LEAP communities in Ghana some time ago revealed that there are changes in the lives of the beneficiaries, some of whom had been able to engage in some form of subsistence business ventures.
Recently, government injected $20 million into the LEAP programme to enable many vulnerable people in Ghana to benefit.

The amount, according to Minister of Local Government and Rural Development, Joseph Yieleh Chireh, was part of the $89.1 million loan facility the government took from the World Bank to help streamline economic activities in northern Ghana and empower the vulnerable.

The Minister said each of the communities would take $3 million with 25 of them coming from the Upper West, Upper East and the Northern regions while the rest of the 15 would be selected from the other regions.

Monday, March 1, 2010

Multi-Million Dollar Project Abandoned

By Felix Dela Klutse
A-$46 million multi-purpose project to be undertaken by Dunkwa Continental Goldfields Limited has been stalled, as some inhabitants of Dunkwa-On-Offin in the Central Region would not allow management of the company to operate.

The project, which is expected to employ about 200,000 people, is lying idle because of serious threats on the lives of the company’s shareholders. Currently some of the firm’s assets are deteriorating and about 300 employees have been sent home.

Dunkwa Continental Goldfields Limited is a limited liability company incorporated to take over the operations of the defunct Dunkwa Goldfields Limited, after a project agreement was signed between the Ghana Government and Continental Construction and Mining Company Limited in 1995.

The project agreement mandated the company to undertake activities such as precious, non-precious and industrial minerals, water and electrical power generation, agriculture, timber, and manufacturing of capital goods including processing plants.

“Our short-term plan is to combine precious and industrial minerals dredging and non-dredging operations to turn the project into a multi-layered one and also provide employment to the masses. Unfortunately, this could not be implemented due to harsh resistance from the local communities,” Kris Kapoor, Resident

Director of the company told BUSINESS GUIDE in an interview in Accra last Friday.
He said his company, since taking over the operations of the defunct Dunkwa Goldfields, conducted its activities in accordance with the terms of the project agreement, but had to stop its gold mining business along the way and venture into other business areas such as agro processing due to the fallen prices of gold in the 1990s.

“The company has not folded up as its being speculated. We stopped mining gold because dredging operations have proved to be non-viable due to the poor market price of gold and high cost of operations in the 90s,” Mr Kapoor told this paper further.

He however said efforts to resume gold mining activities in the area to provide employment has over the years proved futile due to constant demonstration and ruthless resistance from the local communities.

Recently, properties of the company worth millions of dollars have been destroyed by some irate youth of Dunkwa-On-Offin.
Reports say the thugs, with offensive weapons, stormed the premises of the company, located at the Upper Denkyira East a few weeks ago to vandalize some of its assets.

“The demonstrators entered our premises that fateful day and destroyed our bungalows, stores, workshops and finally locked-up the premises with their own padlocks to prevent us from entering. They also threatened to kill me and my Project Engineer,” Mr. Kapoor told BUSINESS GUIDE.

He added: “This is not the first time this situation is occurring. It started two years ago and as I speak now, nine persons are occupying our bungalows illegally. The residents of the area have also turned our main office building into a nurses’ quarters and will not allow us to enter into our own premises.”

In 2004, the company in collaboration with the Ministry of Agric, developed a high caliber model facilities in agro/food processing and capital goods manufacturing at its project site at Dunkwa and on the night before commissioning the facilities, some inhabitants of the area carried human faeces and smeared it on all the entrances to the model facilities, Mr Kapoor added.

He recalled that the Chairman of the of Dunkwa Continental Goldfields Limited was in Ghana in August 2006 to meet and inform President John Agyekum Kufuor about the situation but could not get audience as there was no reply to his letter.

The aforementioned development, Mr Kapoor stressed, was as a result of a letter written by the former Minister of Lands, Forestry and Mines, Professor Dominic Fobih, on November 7, 2005, that his ministry had terminated the project agreement signed between the Ghana Government and Continental Construction and Mining Company Limited in 1995.

Mr. Kapoor said the steps taken by the ministry was illegal and was without due process.
“The project agreement contains an arbitration clause which obliges the parties to refer any dispute arising from the agreement to international arbitration under the rules and regulations of the International Chamber of Commerce,” he said.

The project agreement also has no expiry date and enjoys all privileges and benefits under the old and new Minerals and Mining Laws but does not have any obligations under these laws, Mr Kapoor noted, stressing that the ministry could not take a unilateral decision to terminate the agreement without recourse to arbitration.
He therefore appealed to government to help the company to revive its operations.

E-mail: felixklutse@yahoo.com



By Felix Dela Klutse
A-$46 million multi-purpose project to be undertaken by Dunkwa Continental Goldfields Limited has been stalled, as some inhabitants of Dunkwa-On-Offin in the Central Region would not allow management of the company to operate.

The project, which is expected to employ about 200,000 people, is lying idle because of serious threats on the lives of the company’s shareholders. Currently some of the firm’s assets are deteriorating and about 300 employees have been sent home.

Dunkwa Continental Goldfields Limited is a limited liability company incorporated to take over the operations of the defunct Dunkwa Goldfields Limited, after a project agreement was signed between the Ghana Government and Continental Construction and Mining Company Limited in 1995.

The project agreement mandated the company to undertake activities such as precious, non-precious and industrial minerals, water and electrical power generation, agriculture, timber, and manufacturing of capital goods including processing plants.

“Our short-term plan is to combine precious and industrial minerals dredging and non-dredging operations to turn the project into a multi-layered one and also provide employment to the masses. Unfortunately, this could not be implemented due to harsh resistance from the local communities,” Kris Kapoor, Resident

Director of the company told BUSINESS GUIDE in an interview in Accra last Friday.
He said his company, since taking over the operations of the defunct Dunkwa Goldfields, conducted its activities in accordance with the terms of the project agreement, but had to stop its gold mining business along the way and venture into other business areas such as agro processing due to the fallen prices of gold in the 1990s.

“The company has not folded up as its being speculated. We stopped mining gold because dredging operations have proved to be non-viable due to the poor market price of gold and high cost of operations in the 90s,” Mr Kapoor told this paper further.

He however said efforts to resume gold mining activities in the area to provide employment has over the years proved futile due to constant demonstration and ruthless resistance from the local communities.

Recently, properties of the company worth millions of dollars have been destroyed by some irate youth of Dunkwa-On-Offin.
Reports say the thugs, with offensive weapons, stormed the premises of the company, located at the Upper Denkyira East a few weeks ago to vandalize some of its assets.

“The demonstrators entered our premises that fateful day and destroyed our bungalows, stores, workshops and finally locked-up the premises with their own padlocks to prevent us from entering. They also threatened to kill me and my Project Engineer,” Mr. Kapoor told BUSINESS GUIDE.

He added: “This is not the first time this situation is occurring. It started two years ago and as I speak now, nine persons are occupying our bungalows illegally. The residents of the area have also turned our main office building into a nurses’ quarters and will not allow us to enter into our own premises.”

In 2004, the company in collaboration with the Ministry of Agric, developed a high caliber model facilities in agro/food processing and capital goods manufacturing at its project site at Dunkwa and on the night before commissioning the facilities, some inhabitants of the area carried human faeces and smeared it on all the entrances to the model facilities, Mr Kapoor added.

He recalled that the Chairman of the of Dunkwa Continental Goldfields Limited was in Ghana in August 2006 to meet and inform President John Agyekum Kufuor about the situation but could not get audience as there was no reply to his letter.

The aforementioned development, Mr Kapoor stressed, was as a result of a letter written by the former Minister of Lands, Forestry and Mines, Professor Dominic Fobih, on November 7, 2005, that his ministry had terminated the project agreement signed between the Ghana Government and Continental Construction and Mining Company Limited in 1995.

Mr. Kapoor said the steps taken by the ministry was illegal and was without due process.
“The project agreement contains an arbitration clause which obliges the parties to refer any dispute arising from the agreement to international arbitration under the rules and regulations of the International Chamber of Commerce,” he said.

The project agreement also has no expiry date and enjoys all privileges and benefits under the old and new Minerals and Mining Laws but does not have any obligations under these laws, Mr Kapoor noted, stressing that the ministry could not take a unilateral decision to terminate the agreement without recourse to arbitration.
He therefore appealed to government to help the company to revive its operations.

E-mail: felixklutse@yahoo.com

Fraud Alert At Accountant-General

Story By Felix Dela Klutse

The Controller and Accountant General’s Department is entangled in widespread scandal that is costing public sector workers millions of Ghana cedis.

BUSINESS GUIDE gathered that certain unscrupulous workers of the department have leaked the staff ID numbers of some public sector employees, which is supposed to be confidential, to fraudsters who are using it to secure loans from some financial institutions across the nation.

Mostly affected in this widespread scam are teachers whose salaries have been withdrawn without their knowledge on allegation that they supposedly took bank loans.
The development has sent panic to the teaching fraternity and it is likely that the situation will aggravate if nothing is done about it.

One of the victims of this scam, Ivan Yao Akrobotu, a science teacher at Nima 2 Junior High School in Accra, has already petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) over the issue and indications are that many such victims are likely to also follow suit with similar petitions.
According to the petition dated July 10, 2009 with reference number 2009/HQ/01348,

Mr. Akrobotu, upon receiving his June 2009 payslip on July 7, 2009, he realised that a deduction of GH¢119.85 was made from his salary in the name of Bayport Financial Services.

He said when he followed up to the Kokomlemle branch of the financial institution, near Accra Technical Training Centre to enquire why the deduction was made, the manager (name undisclosed) admitted that it was a mistake on the part of Bayport, stating that “a client of ours in the Western Region uses your staff ID number to apply for loan from us.”

“My request to see the documents the supposed client used to request for the loan was not fulfilled. My request for an immediate refund and a communiqué to Controller and Accountant General to immediately stop the deductions from my salary also received no response,” Mr. Akrobotu stated.

He added: “I further proceeded to the Controller and Accountant General Greater Accra Salaries Unit where I was directed by a worker in the office to see one Mr. Allotey for my complaint. After narrating my story to Mr. Allotey, he told me ‘These people (Bayport) are always involved in these sorts of things, they benefit from it I suppose.”

Mr. Akrobotu’s petition to CHRAJ is therefore calling on Bayport Financial Services to produce the document the supposed client used in applying for the loan from Bayport and the name of the supposed client for further investigation.
He is also calling on the Controller and Accountant General to produce the documents that Bayport submitted to them, which leads to the deductions in his salary for June 2009.

Mr. Akrobotu also demanded that Bayport refunded the amount deducted from his salary with undisclosed interest.

“This is to take care of my expenses during pursuance of this matter and emotional torture that I am going through. Again, that my GH¢119.85 is being used to run their Bayport business, hence the need for the interest,” he explained.

When reached for comments, Public Relations Officer of the Controller and Accountant General’s Department, who failed to disclose his name to this reporter, said it is the responsibility of employers to keep the staff ID numbers of their employees confidential, stressing that his outfit could not accept responsibility for the scam.

The Deputy Manager of the Kokomlemle branch of Bayport Financial Services, who gave his name only as Augustine, told this paper that the problem might have been from the Controller and Accountant General’s Department, noting that it is the department which does the deduction on behalf of Bayport.

“The Department does the deduction on our behalf based on the information we give to them,” another worker at Bayport, who gave her name only as Patricia told BUSINESS GUIDE.

As at the time of going to the press, Bayport pledged to solve the problem.

E-mail: felixklutse@yahoo.com