Importers cry foul over forex shortages, alleged 'mafia' auctions at ports

The Importers and Exporters Association of Ghana (IEAG) has lamented the inability of its members to access forex due to a “shortage” in supply.

The Association noted that its members are trapped in a predatory cycle in which their investments are hijacked and auctioned under questionable circumstances.

Capitalise on cedi gains to import agric, manufacturing machinery – AGI treasurer

In a statement signed by its Executive Secretary, Samson Asaki Awingobit, the IEAG alleged that the forex shortage has given rise to an illegal “mafia-style” system of auctions at the ports.

It stressed that the situation has made it impossible for importers to clear consignments, particularly perishable goods such as frozen foods, from the ports.

Cedi nears GH¢11 on interbank market

“Due to importers’ inability to secure forex on time to clear their goods, their consignments are pushed onto the Undercleared Cargo List (UCL).

“Shockingly, the statutory 60-day grace period before auctioning has been arbitrarily reduced to 21 days. Politically connected businessmen lie in wait for this window to elapse, after which goods are dubiously auctioned without recourse to the importer,” the statement said.

According to the Association, proper gazetting and legal procedures are being ignored, leaving affected traders to suffer crippling losses.

It further noted that importers whose goods are seized are still compelled to pay demurrage on consignments they never had the chance to clear, while politically connected buyers escape such costs and instead pay only shipping lines’ service charges, which range between GH¢6,000 and GH¢10,000.

“This fraudulent system not only robs importers of their hard-earned capital but also denies the state valuable revenue at a time when Ghana desperately needs every pesewa to stabilise the economy,” the statement stressed.

The IEAG described the situation as “predatory and heartless,” arguing that it undermines government’s calls for inclusivity and support for local businesses.

“How can government, on one hand, call for local business growth, while on the other hand allow such hostile practices that only empower corrupt political cabals to the detriment of genuine traders?” the Association queried.

The IEAG is demanding:

• the immediate restoration of the 60-day UCL grace period,

• the introduction of a first-time clearance option to allow importers who miss deadlines to pay penalties instead of losing their goods,

• a comprehensive investigation into the cartels behind the auctions, and

• urgent intervention by the Bank of Ghana to ensure forex availability at fair and predictable rates.

It also warned that failure to address these concerns could trigger legal repercussions.

“The IEAG wishes to make it clear that it will not sit aloof while its members are subjected to such exploitation. We stand ready to explore every legal and legitimate means, including mass action, should government and relevant authorities fail to act swiftly,” the statement concluded.

SSD/MA

GhanaWeb's latest documentary, Sex for Fish, that explores the plights of teenage girls in coastal communities, all in an attempt to survive, is out. Watch it below: