‘The tragedy of the commons’ - Franklin Cudjoe berates govt decision to replace UNIPASS with GCNET

President of policy think tank IMANI Africa, Franklin Cudjoe continues to lash out at the government over decisions to replace a perfectly functioning ports valuation technologies operated Ghana Community Network Service Limited (GCNet) and West Blue Consulting with Universal Pass (UNI-PASS).

Franklin Cudjoe in a write up expressed absurdity at the decision to terminate GCNet and West Blue’s unbroken, cheaper and rewarding port system charging as low as 0.54% of FoB prices.

The new system which is to be operated by UNIPASS is untested, pilot-tragedy prone and rather more expensive charging 0.75% of FoB.

This he says has outrageous financial implications and is definitely the straw that breaks the camels back.

According to Franklin, what is even worse is, the contract itself which is priced at $40m for ten years contains clauses that lists atrocious payouts to UNIPASS should the contract be broken by government – from $93m in the first year to $12m in the tenth year. Additionally, judicial judgement debts running into hundreds of millions of dollars must be paid out to existing GCNet and West Blue, a situation he described as a Classic case of the tragedy of the Commons

Meanwhile, this move by government is creating tension at the ports as stakeholders like Freight Forwarders, Importers and Exporters and clearing agents are raising questions.

Even though earlier report, however, suggests that UNIPASS failed on many occasions to demonstrate its systems, government appears bent on seeing UNI-PASS take over.

Read full write up below

I have been reflecting over how some major decisions with outrageous financial implications have been made- I have now concluded that the most powerful advisor to our President, a man with whom he served under ex-President Kufuor, is the singular reason for some of these cantankerous decisions.

The decision to replace unbroken ports valuation technologies, (cheaper and rewarding GCNet and West Blue, charging us 0.54% of FoB prices) with UNIPASS or its clone, (untested, pilot-tragedy prone and more expensive 0.75% of FoB) prices broke the camel’s back for me. The contract itself is priced at $40m for ten years, yet contains clauses that lists atrocious payouts to UNIPASS or its clone should the contract be broken by government- from $93m in the first year to $12m in the tenth year.

What is worse, judicial judgement debts running into hundreds of millions of dollars must be paid out to existing GCNet and West Blue. But that would not be the Senior Minister’s own money. It would be your taxes. A classic case of the Tragedy of the Commons- what belongs to you, you tend to take greater care of; what belongs to others, must fall into disrepair- for no one cares. So, there you are, with a classic example of political rather than economic advise from the older wise.

The biggest question though, is with which younger folks, equally powerful are the older advisors pliant in this fishing expedition of a ports facilitation project? Looks like my own beloved Finance Minister, my own saavy and sweet handler of our finances. Together, I dare say the two are the most powerful advisors of our dear leader.

By the way, it is Sunday and the scripture I’d leave you with is taken from the 1st Kings..

1 Kings 12:6

King Rehoboam consulted with the older advisers who had served his father Solomon when he had been alive. He asked them, “How do you advise me to answer these people?”

1 Kings 12:8

But Rehoboam rejected their advice and consulted the young advisers who served him, with whom he had grown up.

1 Kings 12:10

The young advisers with whom Rehoboam had grown up said to him, “Say this to these people who have said to you, ‘Your father made us work hard, but now lighten our burden.’ Say this to them: ‘I am a lot harsher than my father!

Cheers!

Signed

Franklin Cudjoe

Have a great week!!