Doing business in Ghana tough - Illegal payments deter investors — US Ambassador (August 10, 20117, Front)
American and Danish companies find it difficult to do business in Ghana because of the demand for illegal payments, the United States Ambassador to Ghana, Mr Robert P. Jackson, has stated.
According to him, particularly for American businesses, the fear of being prosecuted back home when allegations of corruption were found to be true was enough deterrent.
Quoting the Danish Ambassador to Ghana, Ms Tove Degnbol, he said: “These companies would rather lose an order than become involved in the endless game of paying and being required to pay even more.”
“I can tell that American companies feel the same way. And the problem confronting foreign investments also stymie foreign assistance,” Mr Jackson said at the opening of the Ghana Good Corporate Governance Initiative round table in Accra yesterday.
He, however, stated that there were more American businesses waiting in the wings to invest in Ghana to create opportunities for trade and bring the much needed jobs.
Expectations
But he said there was a caveat: “Businesses want to ensure that the money they invest will not go to waste. They want assurances of transparency before they invest, as well as strict enforcement of the Public Procurement Act to end sole sourcing of contract and the passage of the Right to Information Bill.”
To hammer home his point in what has recently been cited widely in the diplomatic community as the reason corruption seems to gain roots in Ghana, he said the failure to prosecute corrupt public officials, including those involved in the arson at the Central Medical Stores (CMS) in Tema, needed to be addressed.
“After two years, we are still waiting for justice in the CMS arson. The fire destroyed more than $80 million worth of medical supplies and drugs, including $7 million in donations provided by the American people.
“This fire, which was ignited to cover up corruption, dealt a significant blow to public health in Ghana. The currencies of the international partnership, trade and aid are at risk unless we stand together, with one voice, and demand that these systemic issues be addressed,” he told the gathering of leaders from civil society organisations (CSOs), businesses, religious bodies and diplomats.
In a speech that rallied diplomats, business and religious leaders, as well as CSOs, to step up their game, Ambassador Jackson said it was time to deal with a canker that hampered investment and growth and limited opportunities.
He also made a strong case for the quick establishment of the Office of Special Prosecutor to deal with corruption-related crimes after a thorough and robust stakeholder consultation.
According to him, particularly for American businesses, the fear of being prosecuted back home when allegations of corruption were found to be true was enough deterrent.
Quoting the Danish Ambassador to Ghana, Ms Tove Degnbol, he said: “These companies would rather lose an order than become involved in the endless game of paying and being required to pay even more.”
“I can tell that American companies feel the same way. And the problem confronting foreign investments also stymie foreign assistance,” Mr Jackson said at the opening of the Ghana Good Corporate Governance Initiative round table in Accra yesterday.
He, however, stated that there were more American businesses waiting in the wings to invest in Ghana to create opportunities for trade and bring the much needed jobs.
Expectations
But he said there was a caveat: “Businesses want to ensure that the money they invest will not go to waste. They want assurances of transparency before they invest, as well as strict enforcement of the Public Procurement Act to end sole sourcing of contract and the passage of the Right to Information Bill.”
To hammer home his point in what has recently been cited widely in the diplomatic community as the reason corruption seems to gain roots in Ghana, he said the failure to prosecute corrupt public officials, including those involved in the arson at the Central Medical Stores (CMS) in Tema, needed to be addressed.
“After two years, we are still waiting for justice in the CMS arson. The fire destroyed more than $80 million worth of medical supplies and drugs, including $7 million in donations provided by the American people.
“This fire, which was ignited to cover up corruption, dealt a significant blow to public health in Ghana. The currencies of the international partnership, trade and aid are at risk unless we stand together, with one voice, and demand that these systemic issues be addressed,” he told the gathering of leaders from civil society organisations (CSOs), businesses, religious bodies and diplomats.
In a speech that rallied diplomats, business and religious leaders, as well as CSOs, to step up their game, Ambassador Jackson said it was time to deal with a canker that hampered investment and growth and limited opportunities.
He also made a strong case for the quick establishment of the Office of Special Prosecutor to deal with corruption-related crimes after a thorough and robust stakeholder consultation.
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