Ghana Supply Company makes profit in operations

Accra, July 11, GNA - The operational income of the Ghana Supply Company Limited (GSCL) for the 2006 fiscal year increased from 4.607 billion cedis in 2005 to 8.149 billion cedis making a 76 per cent increase.

There was also a considerable increase in other incomes from 6.29 million in 2005 to 8.73 billion cedis in the same year. Nana Kusi-Appiah, General Manager, GSCL who made the disclosure at the company's Annual General Meeting (AGM) in Accra on Wednesday attributed the phenomenal increase to the disposal of some properties in line with the policy of recapitalisation of the company. He noted that general and administrative expenses increased from 4.9 billion in 2005 to 10.6 billion in 2006 registering an increase of 116 per cent.

"A pre-tax profit of 6.335 billion was recorded as against a loss of 246 million in 2005 while current assets increased from 8.032 billion in 2005 to 9.654 billion in 2006", he added. Mr. Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning said the new Procurement Act had come at the right time since it would re-engineer the operations of the Ghana Supply Company Limited. He was optimistic that the Act would engender healthy competition between GSCL and the private sector in procuring goods for government entities.

Mr, Baah-Wiredu, in a speech read for him applauded the company for paying its dividend of 500 million cedis to government for the 2005/2006 fiscal year.

Mr. Kwame Osei-Prempeh, Board Chairman of the GSCL noted that business performance of the company showed a positive upward trend following the staff rationalization exercise and the cut in staff and operational costs during the last quarter of last year. "Total turnover for 2006 was 8.150 billion cedis, profit before tax was 6.335 billion cedis with an operational loss of 2.429 billion cedis due to the exceptional general and administrative expenses following the rationalization exercise", he added.

The Provision for tax for the year has been estimated to be 750 million cedis as against zero tax in the year 2005 due to the loss of the over 2 billion cedis declared.

Mr Osei-Prempeh stressed that the company would continue to support and contribute towards the implementation of the Procurement Act, especially in helping in the training of personnel in public and private institutions.

"The board, with the cooperation of the management has initiated moves to put in place policies in respect of human resources, financial and accounting auditing, social and corporate responsibility", he said. He emphasized that the Act would foster competition, efficiency, transparency, and accountability in the public and private institutions by enhancing the procurement procedures involved in procuring goods. Mr. Osei-Prempeh appealed to the sector minister to work out modalities of according the company the opportunity to handle certain procurement contracts and service on behalf of the state.

This, he said, was consistent with Public Procurement Act 2003 (663) section 14 (1a) whereby the Minister responsible for Finance and Economic Planning had the prerogative to use a different procedure for procurement as a matter of national interest, in which case the government as the sole shareholder must as necessity assist GSCL to survive, grow and be profitable to get a fair return on its investment. 11 July 07