THE Ministry of Finance has uncovered a scandal in which half of the revenue due the state are pocketed by importers and other collaborators at the Tema Port.
This was detected by a monitoring team led by Finance Minister, Yaw Osafo-Maafo, when he paid a surprise visit to Tema Harbour to observe how CEPS officials collect revenues for the state.
Mrs Grace Coleman, Deputy Minister of Finance designate, made the revelation at the resumed sitting of the Appointments Committee of Parliament in Accra yesterday.
Mrs Coleman was reacting to a question put to her by a member of the committee as to whether it would not be feasible to raise the VAT ceiling to 15 per cent since the government was finding it difficult to stabilise the economy.
She said raising the VAT level is not the best option for increased revenue generation but rather to make more people honour their tax obligations and for importers to pay the right duties are the better options.
Mrs Coleman stressed that nobody should expect a magic wand from the NPP Government in solving the economic problems facing the country, declaring: “Mr Chairman, let me say that only prudent strategies could save the country,” she said.
She said the country has a lot of potentials for export but: “We have not fully exploited them’’.
To another question, Mrs Coleman said the government will not award contracts for the sake of pleasing the people, but would do so only when there is availability of money for a particular project.
She said the government is seriously looking at the potentials of natural resources such as salt, to develop for the growth of the economy.
On HIPC, Mrs Coleman said the initiative would bring in a relief of between $600 million and $700 million within three years. She, however, stressed that HIPC is only needed as breather and “it does not mean that the problems of Ghana will be over forever”.
The deputy minister designate, who is also the MP for Effiduase-Asokore, told the committee that though most rural banks are doing very well, “some are merely operating as commercial banks, instead of moving to the people at the grassroot level to assist the local small scale industrialists.’’
She said workers are agitating for the reintroduction of the End of Service Benefits “because of the recent development in the country’’.
Another Deputy Minister designate for Finance, Dr G. A. Agambila, told the committee that the national slogan should be ‘’Trade not aid’’, by focusing on the economic potentials of the country for exploitation and developing them for export to all parts of the world.
He noted that poverty in the country could be reduced if the needs of the rural people, such as the provision of potable water, small irrigation systems, access to good education and health-care are seriously improved.
Dr Agambila, who has spent the greater part of his working life in the USA, said HIPC is decided by certain criteria and Ghana’s situation really shows that it was necessary to go HIPC.
Madam Theresa Ameley Tagoe, who is designated for the Works and Housing Ministry, said one of her priorities, if her nomination is approved, is to assist the minister to provide affordable houses to the people.
According to her, some investors have already come in with their proposals on housing and the government is seriously studying them.
She said she would also ensure that about 45 per cent of illegal water connections, especially in the cities, are flushed out to improve water distribution in Accra and other cities.
Miss Alima Mahama, Deputy Minister designate for Local Government and Rural Development, assured the committee that should her nomination be approved, she would work assiduously to improve the lot of women, particularly those in the rural areas.
Miss Mahama, who is a lawyer and a development consultant, with very rich experience in rural development, acknowledged that the former NDC Government did well in poverty alleviation but stressed that a lot more needs to be done.
She said the Non-Formal Education programme could be one surest way of educating the rural people, especially women, about HIV/AIDS.
She also agreed with a member of the committee that queenmothers should be allowed to participate in the deliberations of the regional houses of chiefs.
The MP for Ledzokuku and Deputy Minister designate for Defence, Mr Eddie Akita, agreed with the committee that certain ranks in the military should be made to declare their assets.
“Mr chairman, in recent times, some top military officers have been leading affluent live styles while the military itself has been afflicted by malfeasance, which is very unbecoming of professional soldiers’’.
He said as at now, there is no empirical evidence to suggest that the military is dominated by one or two ethnic groups.
“Research will have to be conducted and if it is turns out the allegation is true, then the other tribes will have to be recruited to balance the equation,’’ he said.
Mr Akita said one of his tasks would be to assist in preparing top military officers about to go on retirement, to enable them to face civilian life with confidence.