22 – 01 – 2003: -Workers walk to work due to
high taxi fares
22 – 01 – 2003: - Ghana is not ready - TUC
21 – 01 – 2003: - Council approves 40 per cent
increase in fares
18 – 01 – 2003: - Government announces new fuel prices
18 – 01 – 2003: - Petrol price goes up by 90 per pent
20 – 01 – 2003: - NDC rejects petroleum price increases
20 – 01 – 2003: - PNC condemns fuel increase
20 – 01 – 2003: - 3 days wages for a gallon of petrol
18 – 01 – 2003: - Fuel increases due to NDC pretence
18 – 01 – 2003: - Driver and mate nearly beaten for fare increase
18 – 01 – 2003: - Ghanaians cautioned against politicising price of fuel
18 – 01 – 2003: - Refinery debt converted into bonds
18 – 01 – 2003: - Refinery has another $200 million debt
Workers walk to work due to high taxi fares
Tamale (Northern Region) 22
January 2003- Many residents of the Tamale municipality have resorted to
walking to their workplaces due to the high taxi fares drivers are now charging
as a result of the recent hike in fuel prices.
The worst hit includes
government workers and school children, a good number of who are now walking to
and from their workplaces and schools respectively. A survey conducted by the
GNA in the municipality showed that taxi fares have gone up by 100 per cent,
which workers and parents interviewed said they could ill afford, after the
Christmas and New Year expenses.
For instance, taxi fare from the
Tamale Teaching Hospital to the taxi rank that used to be 700 cedis, is now
1,500. At the Tamale-Yendi station, Mr Sumani Yakubu, chairman of the
local branch of the GPRTU told the GNA that the fare was previously 5,000 cedis
but this had been increased to 10,000 cedis.
He explained that when the
drivers refused to accept to charge 8,000 cedis as proposed by the GPRTU,
passengers on their own volition agreed to pay an extra 2,000 cedis to enable
them to get vehicles to their destinations.
Meanwhile the union executive of
the taxi branch of the GPRTU have appealed to the government to adjust
transport fares from the proposed 30 per cent to 70 or 80 per cent.
They complained that it was
unfair for the government to adjust fares by only 30 per cent while fuel prices
have risen by 95 per cent. They noted that insurance premium is now 665,000; a
second-hand tyre sells between 80,000 cedis and 100,000 cedis while engine oil
has gone up to 80,000 cedis a gallon.
Some market women interviewed
said they were waiting for the stock of their old foodstuffs to get finished before
they would increase prices when they bought new commodities.
However, a kilo of beef, which
sold at 5,000 cedis is now 6,000 cedis. The butchers
told the GNA that they now pay 20,000 cedis to transport a cow from the cattle
ranch to the slaughterhouse instead of the 10,000 they used to pay.
Other workers interviewed
appealed to the government to implement a cost of living allowance (COLA) to
cushion the effects of the hike in fuel prices on the living conditions of
workers
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Accra (Greater Accra) 22 January
2003- The Trades Union Congress (TUC) on Tuesday said it recognized the need
for government to increase fuel prices in the face of unstable macro economic
factors but rejected the automatic price adjustment formula being implemented
as a means to recover full cost.
Kwasi Adu-Amankwah,
the TUC Secretary-General, said at a press conference in
He said
Adu-Amankwah said there was the need for
government to address itself to the fundamental challenge of economic planning
and its execution as a means of economic management where market forces could
be allowed to play a beneficial role through monitoring.
"Failure to begin to
address these fundamentals reduces to an exercise in futility all the pressures
which eventually led to the decision to raise the prices of petroleum products
by up to nearly 100 per cent," he said.
"Without putting the
economy on the path of transformation based on our own resources and
inventiveness, the cedi will sooner or later slide substantially against the
hard currencies, and this will call for a further hike.
"When this is coupled with
the least external shock, an example being another Gulf War, we could be
compelled again and again to go through the political and economic crisis that
hikes in petroleum products can produce."
Adu-Amamkwah urged the government to,
without further delay, develop an active dialogue with the people on an
economic plan structured around the pillars of agriculture, industrialization,
harnessing of science and technology and the mobilization of human resources
for the exploitation of natural resources.
"In our view, it is only
within the parameters of such a plan stimulated by active state intervention
that market forces can play a role in the critical transformation of our
economy from a low-valued raw material producing economy."
Adu-Amankwah noted that it was time for
stakeholders to come out with a realistic incomes policy. "We agree on the
need for an immediate adjustment of wages and salaries to enable workers to
cope with the changes in prices of petroleum prices but we demand that the wage
increases be made in the context of a movement towards realistic wages that
allow workers to meet the demands of the market."
Adu-Amankwah suggested that government
provide on regular basis information on the petroleum sector and other areas of
the economy for the people to better assess the economic management of the
country.
Meanwhile, government has
announced that it would announce salary adjustments next week. Senior Minister,
Joseph Henry Mensah said the salary hike would be bout 20 per cent.
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Council approves 40 per cent increase in fares
Moses said, meanwhile, increases
in fares of commercial vehicles would be from 30 per cent to 40 per cent but
this does not go across board. The Chairman said this after a marathon
tripartite meeting in
"Drivers are sacrificing;
they are doing their best whilst waiting for the new percentage looking at
prices of spare parts." The two ministries and GRTCC on Friday announced a
30 per cent increase in fares following the almost 100 per cent hike in the
prices of petroleum products.
However, drivers have ignored
the new fares and are charging double the old fares. Moses described the
meeting as a difficult one called by the government to iron out the differences
in transport charges after the arbitrary increase in lorry fares. Moses said
the Council was finding a basis for doing the right thing and not to give
drivers the chance to do what they wanted.
He said the Council needed some
time to educate its regional Council members and transport owners on the issue
and called on the public to bear with them. Moses assured the public that the
issues were critically looked into and all imbalances in the previous system
have been addressed.
He said certain routes were
killing businesses due to poor fares charged. Moses said the Council reasoned
with drivers and the public and made sure that they came out with figures that
would enable drivers to break even. He said drivers should for the safety of
passengers carry only the registered number of passengers.
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Government announces new fuel prices
Premium 20,000 cedis a gallon
Diesel 17,500 cedis a gallon
Kerosene 17,500 cedis a gallon
Marine
Diesel 16,000 cedis a gallon
Pre-Mix 16,000 cedis a gallon
LPG 3,800 cedis per kilogramme
The new prices were announced by
the Minister of Energy, Albert Kan-Dapaah at a press
conference at the Ministry of Information.
The press conference was attended
by the Senior Minister, J.H. Mensah, the Attorney-General and Minister of
Justice, Nana Akufo-Addo, Minister of Information an
Presidential Affairs, Jake Obetsebi-Lamptey.
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Petrol price goes up by 90 per pent
Addressing a press conference at
the Ministry of Information, the Minister of Energy, Mr Albert Kan-Dapaah said a gallon of premium petrol would now sell at
20,000 cedis a gallon, up from 10,500 cedis. Diesel and kerosene would each
sell at 17,500 cedis a gallon, marine diesel and pre-mix fuel would each sell
at 16,000 cedis while LPG would go at 3,800 cedis per kilogramme.
"Future price revisions
will be determined by the automatic price formula published in June 2001 and
implemented by the National Petroleum Tender Board (NPTB)," he said.
The press conference was
attended by the Senior Minister, Mr J.H. Mensah, the Attorney-General and
Minister of Justice, Nana Akufo-Addo, Minister of
Information and Presidential Affairs, Mr Jake Obetsebi-Lamptey and other senior
government officials.
Kan-Dappah
said government had taken a painstaking impact assessment of the effect of
these changes and other factors such as an increase of about 12 per cent in
utility prices and a premium payment towards health insurance expected in
March.
"The impact assessment
shows that these increases will result in those earning least having to pay an
extra 13 per cent for their living costs. For those in the medium to higher
income groups, the extra cost is substantially the same level."
Other measures the government
has put in place include immediately increasing the mass transit. Kan-Dapaah said 10 large volume buses are being cleared from
Tema
harbour and would be available
on the road on Monday, 50 completed Neoplan buses
would be introduced by Wednesday, 200 Italian buses are being delivered with
the first batch expected by mid-February, 250 buses have been ordered from
Holland and an additional 100 buses are being ordered from China.
He said these initiatives
highlighted government's commitment to delivering mass transit, adding that the
ticket pricing on the buses would be competitive and would help hold
transportation costs to an acceptable level.
The Minister said agreed
transport charges would be announced within the next 24 hours.
“In order to show leadership in
bearing this national burden, there will be no increment in salaries and allowances
payable to members of the executive, that is the President, the vice president,
Ministers, Deputy Ministers, Metropolitan, Municipal and District Chief
Executives and Special Assistants, Further, fuel and utility allowances for all
government officials will be reduced, " he announced.
Kan-Dapaah
said the Tripartite Committee was being tasked to agree a new minimum wage by
the end of next week adding that "This will be at a level that will cover
the expected impact but not such as to reverse the gains we have made in
controlling and reducing inflation." It is expected to be about 20 per
cent.
Kan-Dapaah
said the government had decided the immediate implementation of the automatic
price adjustment formula based on full-recovery and the setting of an initial
maximum integrated margin of five US cents for the oil sector.
Kan-Dapaah
said with the current crude price being 32 dollars a barrel and an exchange
rate of 8,800 cedis to the dollar, the full recovery price, including debt
servicing, should be 23,210 cedis a gallon. This is made up of import parity,
duties, levies such as road development fund, distributor's margins and debt
servicing.
The government has said the
rising debt at the Tema Oil Refinery, the increase in crude prices and the
sliding currency meant that it could no longer maintain the ex-pump price at
that low level.
He pointed out that at over 4.5
trillion cedis, and rising daily, the TOR debt has significant economic
implications,
The minister disclosed that the
government issued TOR Bonds for 976 billion cedis in 2001 and has also issued
bonds to Ghana Commercial Bank to recover another 1.4 trillion cedis of TOR
debt owed the bank.
"The financing of the TOR
debt through the issue of bonds should be considered as a bridging operation,
while the option of obtaining external financing on the international bond
market is pursued. Significant cost savings would be made if the debt is
parcelled and sold on the international bond market," he noted.
Kan-Dapaah
said government would seek to repay the TOR debt through any windfall gains
that accrue in future and from increased operational profits that would result
from a revitalised and reorganised TOR and proceeds from and the privatisation
of TOR.
Kan-Dapaah
said to ensure effective implementation of the policy recommendations,
government had further decided that the National Petroleum Tender Board would
be given the independent responsibility to set the maximum allowable
ex-refinery price and integrated margin on products on a quarterly basis.
He said oil marketing companies
would be required to erect billboards to visibly display their prices, adding
that future price changes would be "announced" through the bill
boards.
Kan-Dapaah
said to enhance the efficiency of the petroleum sector and avert the financial
collapse of TOR, with severe implications for the banking system, the petroleum
sector must be restructured in terms of pricing and participation of the
private sector.
He revealed that the government
would open up the refinery business to private sector participation and
competition. Giving further background of the crisis in the petroleum sector,
Kan-Dapaah said the persistent under-recovery of
costs by TOR had resulted in a situation where
In
"Be as it may, the grave
consequence of our low pricing is that it has generated a huge smuggling
industry around our borders, possibly adding an extra 25 per cent to our oil imports.
The mounting losses are clearly unsustainable and if left unchecked, can cause
permanent damage to our economy," he observed.
Kan-Dapaah
said the effect of this smuggling on the economy would be substantially less if
the country were achieving full cost recovery.
The Minister said in formulating
the new policies to address the problems in the petroleum sector, government
had been guided by a number of considerations, many of which are being
expressed in the public discussions.
Some of these are no further
accumulation of petroleum debt, TOR debt must be repaid within a reasonable
period, government should improve upon management performances and put in
measures to check corruption an inefficiencies at TOR as a matter of urgency
and trading risks, from procurement to distribution, must be spread throughout
the industry rather than being borne solely by TOR as at the present.
Long queues had been forming at
filling stations for several days as petrol dried up and fuel dealers and
government officials accused each other of for the situation. Fuel dealers said
they were not having enough supplies while the government said the dealers were
hoarding in anticipation of a big rise that would give them a windfall.
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A statement issued in Accra said
"We are on the firm conviction that the level of the recently announced
petroleum prices are unjustifiable especially in the light of the accusations
of waste, inefficiency and corruption levelled by the President against the management
of TOR.
According to the minority just
as in the case of the IFC loan, members are requesting the NPP Government to
roll back on the announced petroleum price increases before it is too late
because the adverse effects of these increases will far outweigh any short-term
benefits Government hopes to gain from them.
"We also advise government
to urgently sit down with the leadership of other political parties and social
partners to urgently review the situation and agree on realistic but affordable
prices for petroleum prices," it noted.
The statement which was signed
by Hon. E.K. Doe-Adjaho, Minority Chief whip, said
these increases would inflict unimaginable hardship on the disadvantaged rural
and urban poor population and would also put undue pressure on industry and
commerce.
"The increase of almost 100
percent in the case of petrol and only a little less in the case of all the
other petroleum products, are the most unprecedented in the colonial and
post-independence history of this country," the Minority said.
"Not even at the height of
the Gulf War in 1991, when crude oil prices rose from a previous low of 10
pounds sterling per barrel to over 40 pounds sterling per barrel, did the then
Government raise petroleum prices by as much as 100 per cent," it stated.
It said the increase in the
price of kerosene was not only anti-people, especially for the most vulnerable
groups, but also appeared almost deliberately designed to take life out of the
rural communities.
"Indeed it is the greatest
paradox of our history, that persons who proclaimed to champion the interest of
the ordinary people of this country while in opposition by organising massive
demonstrations against policies of the previous government, are today while in
government, inflicting such cruelty on the same people," it noted
The statement said compared to
these consequences, the gimmicks alongside the increases such as the proposed
wage freeze for members of the executive and the reduction in their fuel
allocations appeared almost insulting.
"Clearly the new prices
have no relationship with the previously announced petroleum price fixing
formula or with the fraudulent TOR debt. We are also aware that the new prices
have a hidden VAT adjustment," the statement said.
It said pressured by IMF and the
World Bank to increase the VAT rate but unable to do so because of its
historical antipathy to VAT and haunted by the twin ghosts of the "Ku Me Preko and Ya Bre
demonstrations, the NPP had opted for political and economically suicidal path
of achieving its revenue mobilisation targets through such callous increases in
petroleum prices.
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Saturday condemned the
government for increasing petroleum products by 90.4 per cent and asked for
salary adjustment by the same percentage for the betterment of the ordinary
worker.
Alhaji Hamed
Ramadan, Vice Treasury of the party said this when he addressed a large
gathering of supporters and sympathisers of the party at Kokomba
Market, in
The purpose was to formerly
announce to the members that the PNC was still in motion and to solicit their
support to win the 2004 general elections.
Alhaji Ramadan said the NPP
administration has disappointed Ghanaians in everything, including their
inability to control the economy and that the subsequent increase in fuel would
further increase the woes of the people, particularly the poor, who could not
take three square meals a day.
He said government has shown
total disregard to Ghanaians, adding, "the exercise is a heartless
one" and that it was wrong for government to use smuggling as a main
factor of increasing the price of the product.
Alhaji Ramadan said, "If it
was the question of arresting smuggling, why can't government also increase the
price of cocoa to make its smuggling irrelevant".
He said the average Ghanaian
could not afford the school fees, health service bills and the cost of all
other essential services would naturally go up, resulting in hardship to
parents.
Dr Edward Mahama, leader of the
party advised members of the party to access their living standards since the
government came to power and exercise their franchise wisely to change the
government for the better.
He said government should have
increased the product bit by bit so as to reduce the impact, adding that a PNC
government would ensure that Ghanaians would not face such hardships.
Mallam Tamalbe
Osmanu, chairman of the Kokomba
Market Sellers Association assured the PNC of their support and advised the
leadership of the party to help develop the market.
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3 days wages for a gallon of petrol
Accra (Greater Accra) 20 January 2003 – That petroleum products are beginning to dictate the lives of Ghanaians, especially those in low income earning group has become as true as night follows day.
The new price increases of 20,000 cedis per gallon of gasoline, 17,500 per gallon of diesel and kerosene, 16, 000 per gallon of marine diesel and premix fuel and 3,800 per kilogram of LPG bring a new awakening to the ordinary Ghanaian.
The new increase translates to three day’s salary of an ordinary worker for a gallon of petrol. As has been the case in the past the adjustment in the prices of petroleum will have a rippling effect on all economic activities.
The sector that will rip workers off if the transport
sector. Already drivers of the
The increases come in the wake of 12 percent increases in the utility tariffs, besides other bills. The Minister of Energy Albert Kan-Dapaah who announced the price hikes on Friday was quick to admit the untold hardships the adjustment will likely bring on ordinary people.
An impact assessment on the latest development shows that the vulnerable will pay an extra 13 percent for their living cost. The Energy Minister said the government has therefore decided to implement measures that would ameliorate the suffering of the poor.
First, the government has decided to improve the efficiency of the mass transport system. Ten large volume buses are being cleared from the Tema harbour and will be on the road today.
An additional 50 Neoplan buses
will be introduced on Monday, while 200 Italian buses would be delivered in
February. Another set of 250 buses have been ordered from
Kan Dapaah also announced that in solidarity with Ghanaians, allowances and fuel subsidies of all Minister and Chief Executives of Municipal and District Chief Executives will reduce as part of measures to cut the Tema Oil Refinery (TOR) debt.
Asked to give definite percentage of a reduction in the allowance of government functionaries, the Minister said the details are being worked out and would be released to the press when ready.
Giving the background to the fuel price hikes, the Minister said the debt overhung of TOR has reached a point where government can no longer help but to charge realistic prices, it is to pay the 600bn cedis interest in addition to the principal of 3.4bn cedis.
He said the 3.4bn cedis exceed the private capital of all the commercial banks put together. Thirty percent of all the debts of TOR are owed Ghana Commercial Bank, which the minister said is in deep trouble.
Part of the problem of under-recovery of petroleum products
is what the minister called “low pricing”. He said
“The grave consequences of our low pricing is that it has generated a huge smuggling industry around our border possibly adding an extra 25 percent to our oil imports”, said Kan Dapaah.
He said the government has therefore decided to introduce policies that would curb the situation. Firstly there would be no further accumulation of debts, and that government would improve upon management performances to check corruption and inefficiencies at the Tema Oil Refinery (TOR).
“The mounting losses are clearly unsustainable and if left unchecked can cause permanent damage to our economy”, the minister suggested. – Public Agenda
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Fuel increases due to NDC pretence
Odumase-Krobo (Eastern Region) 18 January
2003- A Government Spokesman, Nana Ohene Ntow, has blamed the hike in fuel prices to the politics of
falsehood played on the country by the NDC government by refusing to recover
the full cost of the ex-pump price of petroleum products.
He explained that the NPP
opposed the increase in fuel prices when in opposition because the NDC
government claimed it was recovering the full cost of importing and refining
crude oil.
Nana Ntow
was answering questions on the Kufuor administration's decision to increase
fuel prices at a Peoples Assembly at Odumase-Krobo in
the Manya Krobo on Friday.
According to him, the government
discovered the falsehood when it took over the reins of government finding a
debt of 2.3 trillion cedis in the accounts of the Tema Oil Refinery.
Nana Ntow
made it clear that the government felt it could not continue to subsidise fuel,
adding that, "it is now time to adopt the culture of efficiency in the use
of fuel by both public servants and individuals".
He, however, assured the people
that the Ministries of Trade and Industries and Economic Planning were in
discussion with experts to produce diesel from the eucalyptus seed to help
reduce the cost of fuel imports.
Nana Ntow
referred to reports of the withdrawal of services by commercial drivers in the
area and urged them to reconsider their action since overloading against the
insurance regulation should be stopped to protect the interests of passengers
in case of accidents.
The President of the Manya Krobo Youth Congress, Mr
Francis Sackitey, referred to the dispute over the Akuse area due to the decision by six assembly members to
attend the Dangbe West District Assembly in the
Greater Accra region and called on the government to come out with decision on
the matter to promote peace.
Dr Francis Osafo Mensah, Eastern
Regional Minister, urged the people to continue maintaining peace and to avoid
violence since the Regional Co-ordinating Council had taken up the issue for an
amicable solution.
Kwadwo Asiedu-Affram,
Deputy Minister of Interior, assured the people that the government would soon
come out with a policy on the activities of aliens in the area. The District
Chief Executive, Mr Andrews Teye, appealed to the
government to consider the creation of an additional district for the
He outlined programmes by the
assembly to improve infrastructure and sanitation and urged the people to live
up to their civic responsibilities to promote development.
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Driver and mate nearly beaten for fare increase
The commercial LT bus, which,
according to some of the passengers, was supposed to load four passengers on a
row and charge 1,000 cedis but the mate asked them to sit five on the same row
and pay 2000 cedis.
The situation became worse,
according to the source when the driver asked whether the passengers knew that
there were increases in fuel prices. Some of the passengers challenged the driver
and that it was not prudent for the drivers to determine their own prices
without waiting to hear from the head of the GPRTU.
When the situation became tense,
the passengers were asked to pay 1,500 cedis and sat five on row. Briefing GNA
in
He said, he joined the same car
from Tema station to Nungua last Tuesday and the
driver charged them 1,700 and was not surprised that the passengers were asked
to pay 2,000 cedis.
Similarly, some passengers from
Teshie to
Passengers have called on the
transport unions to publish the approved new fares as early as possible to
avoid drivers' taking advantage of the delay to exploit passengers.
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Ghanaians cautioned against politicising price of fuel
Adeiso (Eastern Region)
He said if realistic prices for
the petroleum products were not paid government would not be able to raise
enough funds for importing crude oil for the Tema Oil Refinery (TOR).
Speaking at the People's
Assembly at Adeiso in the West Akyem
District of the Eastern Region, Nana Ntow said
government could not penitently subsidise the prices of fuel while the 3.4
trillion cedis debt incurred by TOR continued to increase.
He, therefore, appealed to
Ghanaians to accept the new increase in good faith. J. S. Achuliwor,
Deputy Minister for Communication, said work on a rural satellite telephone
system would start by the end of February.
The Eastern Region Minister, Dr.
Francis Osafo-Mensah, advised people who acquired loans through the Poverty
Alleviation to repay them so that others could benefit.
Umar Amoah,
District Chief Executive, said the assembly has paid the 4.1 billion cedis debt
it inherited. He said the assembly had rehabilitated roads and school blocks to
facilitate education and economic activities.
Amoah also said the assembly was
building a ward for the
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Refinery debt converted into bonds
Accra (Greater Accra) 18 January
2003- Joseph Henry Mensah, Senior Minister, on Friday said the debt which Tema
Oil Refinery (TOR) owes the Ghana Commercial Bank (GCB) has been converted into
long-term bonds.
He said government came to this
decision in order to cover the over-exposure of the bank, which formed about 90
per cent of the total debt. The total debt of 4.5 trillion cedis, according to
him, was incurred, especially between 1999 and 2000.
Mensah said this at a press
briefing to announce new prices for petroleum prices in
The new price for a gallon of
premium petrol is now 20,000 cedis, up from the previous 10,500 cedis, liquefied petroleum gas is 3,800 cedis per kilo,
premix and marine fuel, 16,000 cedis a gallon each while kerosene and diesel
will now sell at 17,500 cedis a gallon each.
Mensah said the situation facing
the GCB is real and must not be glossed over, adding that the Bank is very
potent and viable. He said government was taking the situation at TOR very
seriously, saying it was being addressed with all the energies and efforts
available.
He explained that stakeholders
such as the Association of Ghana Industries, Private Enterprise Foundation,
religious bodies and other well-meaning institutions were consulted in
determining the new petroleum prices.
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Refinery has another $200 million debt
Kan-Dapaah
said this when he announced new petroleum prices in
Kan-Dapaah
said nothing was said about this new debt, "because,
on paper they are likely or supposed to get it back through the production of
products that will be exported." "My fears are that with the current
rate of consumption pattern in
He said TOR had the capacity of
becoming an efficient plant if its current plans are followed, and with the
additional restructuring and injection of a new management envisaged by
government.
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