Cabinet approves recommendations to cancel Timber Utilisation Contracts

Cabinet last month approved the cancellation of the Timber Utilisation Contracts (TUC) and the allocation would now be done based on competitive bidding as approved by Cabinet. The previous Government recommended and sought Parliamentary ratification for the granting of 42 TUCs covering 3,041 square kilometres of timber resources for 30 companies in 2000.

Professor Kassim Kassanga, Minister for Lands and Forestry, said the allocation was ratified by Parliament in November 2000 but when the new government took over power, numerous petitions were received from some timber companies regarding the manner in which the TUCs were allocated.

The Minister said this in an answer to an urgent question asked by Mr John Kwekucher Ackah, NDC-Aowin Suaman, as to why the TUCs ratified by Parliament in 2000 had not yet been implemented.

Prof. Kassanga said since most of the petitioners were obviously not satisfied the ministry had to review the TUC allocations with a view to bringing about transparency, equity and sustainable resources development. He said in the ministry's review process anomalies were detected which rendered the TUC allocations null and void.

It was detected that the allocations were made contrary to the relevant provisions of the Administration of Lands (Amendment) Decree, 1979 (AFRCD 61) (Appendix 1) which was then in force. Prof. Kassanga said during that period, seven out of the 30 companies had more than 103 square kilometres, one of the companies had an aggregate TUC area of 621 square kilometres and 25 companies were given TUC terms of 40 years as against 30 years as stipulated by the law and which were all contrary to the law.

Prof. Kassanga said against this background, all the 42 TUCs had been withdrawn and reverted back into the pool of expired TUCs.

He explained that the Timber Resources Management (TRM)(Amendment) Act 2002 (Act 617) provides the legal basis for competitive bidding and furthermore, the TRM Legislative Instrument (Amendment) Regulations, 2002 which is currently before the Attorney General Completes the legal framework.

Dr Mustapha Ahmed, NDC- Ayawaso East, asked whether all the companies violated the regulations and the Minister said about 85 per cent of them broke the law and the cancellation was to ensure fairness to all. Mr Sampson Ottu Darko, NPP-Ga North, asked what measures were put in place to ensure that no activities took place and the Minister said the forest guards were there to protect the forest.

Mr Isaac K. N. Ofori, NDC-Sefwi Wiawso, asked how soon the competitive bidding would take place and the Minister said it was subject to the House passing the Forestry Regulation Legislation. Mr Modestus Ahiable, NDC- Ketu North, asked whether the Minister would agree that the cancellation of the TUCs had negatively affected investor- confidence, the Minister said it had rather boosted it.