A senior Political Science lecturer at the University of Ghana, Legon, Professor Ransford Gyampo, has raised concerns about Ghana’s lithium deal stating that only “myopic leaders” will ok a lithium deal without a majority or equal share.
According to him, the current lithium agreement deal signed by the government of Ghana and Lithium Atlantic, an Austrian Company is a clear indication that Ghanaian leaders lack vision.
He said countries like Zambia, Zimbabwe and the rest have been able to negotiate for majority or equal shares on many of their mining agreements but the case of Ghana is opposite.
Prof. Gyampo made this statement when speaking at a public lecture organized by the United Voices for Change (UVC), a civil society organization held in Accra”.
The current lithium deal of 13% share which has been described by the Minister of Lands and Natural Resources, Mr. Abu Jinapor, government officials and former Minister of Power during erstwhile John Dramani Mahama’s regime, Dr. Kwabena Donkor as the best deal is myopic.
According to him, “I don’t know why government officials have failed this country when it comes to negotiating mining and other extraction deals.
Speaking on the theme on the theme, “Governance and Performance of State Own Enterprises in Ghana”, Prof. Gyampo said it is quite disheartening that state-owned enterprises perform poorly.
He attributed these low performances of SOEs to politicians who always give them out as a way of rewarding party supporters who in one way or the other, have contributed immensely to the party’s agenda or, people who insult most. “This unacceptable considerations form basis for selection”
State Own Enterprises, he mentioned, were expected to positively impact the economic growth but currently is an abettor on Ghana with numerous debts they mentioning COCOBOD as an example of SOE that are making losses.
He averred that, upon all the losses being made at COCOBOD, people are still sitting there receiving huge sums of bonuses.
“You see what is wrong with us. What I know is that companies and public corporations would be
given bonuses at a time when you are making profit. Now look at us, see what is happening at GNPC.
These SOEs now exit merely as a name. They exist as avenue where people are placed to earn monthly salaries. And now, their existence are rather a drain on the coffers and the resources of the nation”.
In terms of governance of the SOEs, he questioned the appointments and the composition of the Boards which essentially, is subject to excessive partisan politics leading to appointments and placement of square pegs in a round holes.
Prof. Gyampo calls for a paradigm shift in the appointment of CEOs. “there would be no productivity and profitability If you appoint someone who’s only qualification is his ability to insult at a faster rate during an election campaign.
Also what benefit will the state derive If you appoint someone as CEO of SOEs with the only consideration as someone who served as a helper to the appointing authority, “a boye boye”. Equally If you appoint a CEO because he campaigned a lot during the election or, provided funding to secure victory.
He reiterated that the governance of a developing country like Ghana is too serious a business to be left into the hands of just anybody. “We can’t get it. Our leaders have travelled enough but failed to use the opportunity to learn best practices.
The ‘Travel and See’ adage, which I didn’t understand until I grew up is meant to inspire us to learn or adopt practices from other areas for development but our leaders are non receptive to learning.
Prof. Gyampo disclosed that, sometimes people are even appointed to a Board and they complained that it is not a juicy place for them which he said, is a clear indication that the composition of Boards are seen as a means to reward the people who are loyal to a regime.
Prof. Ransford Gyampo revealed further that, due to the above mentioning, when board members sat at a board meeting, rather than providing expert advice and information as to how the SOEs can run effectively into profit, they sit and then eye the resources or the seating allowance.
“So, some actually go and multiply the number of times that they can be meeting. People actually beg for board meetings. They called for a meeting simply because of the allowances that they are going to be getting”.
This he indicated is bleeding and suffocating SOEs for few individuals selfless.
He noted that, lack of proper oversight is also a challenge to SOEs performance and therefore adherence to good corporate Governance critical for SOEs.
There is a need for the state to directly participate in commercial businesses regardless of regimes in power and their seeming ideological differences, by establishing state enterprises.
He further added that SOEs are set up to render essential services that may be too expensive when placed in the hands of the private business entrepreneur. “If you leave the production of water entirely into the hands of the private person. Water is essential to humans so if you privatize it completely, then people would be drinking water tot-tot instead of making sure that they drink enough to flush their systems of toxic”.
SOEs he said, are sometimes set up to also grant a certain commanding control of the high of the economy added that, they are set up not to be run at a profit but to be able to be run and make some profits or break even so that, they can justify the reason why government would continue to invest huge sums of money in them.
