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How G-CNET Outfoxed CEPS

Tue, 1 Jun 2010 Source: Catalyst

• To win Mills’ Favour

The hopes of Customs Excise & Preventive Service (CEPS), to implement a new software in mobilizing revenue at the country’s ports on behalf of government were dashed last Friday when President John Evans Atta Mills decided to rescind his decision to task it to go ahead with the job. Instead, the President, by an official statement from the seat of government, has authorised G-CNET to perform the task. This however did not happen out of the blue, The Catalyst can authoritatively state. G-CNET had outfoxed CEPS in order to have its way. The President had directed his secretary, Mr. Bebako Mensah on Friday, May 21st, to communicate his decision in writing to CEPS after a meeting at the Castle with senior officers of CEPS and representatives of the Destination Inspection Companies (DICs). But that was never to be, as a lot of water had passed under the bridge behind CEPS who left the Castle sure of taking delivery of the all-important letter.

The Catalyst can reveal that G-CNET wrote a letter to the Finance Minister, copied to the President, on 21st May 2010, asking to be given the opportunity to take charge of valuation of goods at the ports, the same job that CEPS was to perform with its new software. This was the same day that the President presided over a meeting at the Castle that gave ample opportunity to both CEPS and the DICs to demonstrate their capability of reversing the current sorry state of revenue loss associated with the work of the DICs at the ports. The President decided after the meeting that CEPS was better placed to do the job. Led by powerful people within government with vested interest, G-CNET was able to convince the President after the May 21st meeting at the Castle that it would put to use a software similar to that of CEPS, in not only executing the job but, at no cost to the state.

Subsequently, a letter dated 25th May was sent to the Director General of the Ghana Revenue Authority (GRA) from the Presidency, requiring his recommendations on G-CNET’s proposal within 24 hours. But before the reply of the Director General had reached the Presidents desk on May 26th, a release from the Presidency was issued indicating that G-CNET had been given the green light by the President.

What surprised CEPS about the President’s new decision is that at the May 21st meeting at the Castle, a specific question as to whether G-CNET could do valuation was answered in the negative.

Indications picked by this paper from CEPS sources suggest that there is something fishy going on. According to reactions from CEPS, the DICs have skeletons in their cardboards, which only CEPS can expose by taking charge of valuation at the ports, the reason the DICs backed by persons with vested interest in government, have fought tooth and nail to ensure CEPS lost the opportunity.

A top CEPS officer who spoke to this paper under condition of anonymity said that President Mills got it wrong when he castigated CEPS on his famous visit to the ports that CEPS was not doing due diligence as far as valuation of goods was concerned, making the state lose revenue. He said “it was later that the president himself got to know that CEPS does not do valuation at the moment. It is the DICs who do the valuation. We only collect the money so how can we be blamed for undervaluing goods by the President?”

Source: Catalyst