China shipping firm Cosco to buy HK rival OOIL for $6.3bn

Chinese shipping giant Cosco is set to buy its Hong Kong rival OOIL for $6.3bn (£4.9bn).

The deal would make Cosco the world's third biggest shipping company, with more than 400 vessels.
OOIL's majority owner has accepted the bid, though the sale will still need regulatory approval.
It would be the latest in a wave of mergers, which has left the top six shipping lines controlling almost two thirds of the market.

Overcapacity struggles

OOIL's subsidiary OOCL is currently the world's seventh largest shipping line, with 3.2% of global market share, according to shipping database Alphaliner.
Cosco is offering $10.07 per share, a 38% premium over OOIL's closing price on Friday.
The family of Hong Kong's first Chief Executive Tung Chee-hwa founded OOIL, and still holds a 69% stake in the company.
They have accepted the offer, but it still needs the approval of Cosco shareholders, as well as US and Chinese regulators.
Overcapacity and slowing demand is leading to major changes in the shipping industry.
Korean shipping giant Hanjin filed for bankruptcy last year, while France's CMA CGM bought Singapore's Neptune Orient Lines.

Trump accuses Obama of inaction over Russia meddling claim

President Donald Trump has accused his predecessor Barack Obama of inaction over alleged Russian interference in the US election in 2016.

Mr Trump said Mr Obama had learned well before the 8 November poll about the accusations and "did nothing".
His comments followed an article in the Washington Post which said that Mr Obama learned last August of President Vladimir Putin's "direct involvement".
The alleged meddling is the subject of high-level investigations in the US.
President Putin has repeatedly denied any Russian interference into the presidential election.
The Washington Post article says Mr Obama was told early last August by sources deep within the Russian government that Mr Putin was directly involved in a cyber campaign to disrupt the election, injure Hillary Clinton and aid a Trump victory.
The Post said Mr Obama secretly debated dozens of options to punish Russia but in the end settled on what it called symbolic measures - the expulsion of 35 diplomats and closure of two Russian compounds. They came in late December, well after the election.

The Post reported that Mr Obama was concerned he might himself be seen as trying to manipulate the election.
The paper quoted a former administration official as saying: "From national security people there was a sense of immediate introspection, of, 'Wow, did we mishandle this'."
Measures Mr Obama had considered but which were not put into action included planting cyber weapons in the Russian infrastructure and releasing information personally damaging to Mr Putin.

Mr Trump tweeted on Friday: "The Obama Administration knew far in advance of November 8th about election meddling by Russia. Did nothing about it. WHY?"
He followed that up with two more tweets on Saturday, the second saying: "Obama Administration official said they "choked" when it came to acting on Russian meddling of election. They didn't want to hurt Hillary?"
He repeats the argument in an interview with Fox News, which will air on Sunday.
Credit: BBC

GRA declares Roland Agambire wanted for defaulting tax

The Ghana Revenue Authority (GRA) has declared the Chairman of Agams Group of Companies, the Mr Roland Agambire, a wanted man.
This, is because according to the GRA, one of the subsidiaries of AGAMS Group, ACI Construction Company has evaded corporate tax and VAT amounting to GH₵14,312,974.19.

According to the GRA, even though it has sent a number of correspondence to Mr Agambire as chairman, he has not responded or sent a representative to meet with the GRA.
Consequently, the special mobilisation task force of the GRA on Tuesday locked up the company.

14 days notice
According to the National Co-coordinator of the GRA task force, Mr Henry Sam, under Section 34 of the VAT Act, Act 546, and Section 136 of the Internal Revenue Act, when a property is sealed, owners have 14 days within which to pay up.
“We have locked the place but it is not the end, the final determination is that we will auction the property if the company fails to pay within the 14 days”, he explained.
He said all efforts to reach Mr Agambire has proven fruitless, adding that they have therefore given Mr Agambire fourteen days to report himself or lose his properties.
“We’ve been trying to get in contact with him to explain the basis upon which the company has been assessed but to no avail. We even issued a notice for him to appear at the Ghana Revenue Authority but once again we did not establish contact with him” he stated
He said the GRA will sell off the property to defray the debt if Mr Agambire fails to comply.
He further explained that GRA conducted a tax compliance audit on ACI Construction and a draft report was sent to him through a consultant three months ago for him to appear before them but they were told he was not in the country.

 GRA storms 4 companies to demand taxes
The GRA on Tuesday stormed the offices of four companies in an effort to compel them to settle their tax indebtedness to the state.
The companies were Vodafone Ghana Limited, ACI Construction, a subsidiary of the Agams Group of Companies, which is indebted to the state in the sum of GH¢14,312,974; Eagle Star Enterprise Limited, an engineering and construction firm that owes GH¢604,175, and Logistics Supplies Services Limited, which owes GH¢460,779.
The National Communications Backbone Company (NCBC), a firm set up by Vodafone Ghana Limited to provide the bandwidth needs of Internet service providers (ISP) and offer other technology services, is said to owe the state GH¢30,061,608 in taxes, which is being disputed by the Vodafone Ghana Limited.
Credit:   Getrude Ankah Nyavi

I have no ties with DKM owner and others – Mahama

President John Mahama has refuted rumours that he and the First Lady, Lordina Mahama, are behind some fraudulent microfinance institutions in the Brong Ahafo region, particularly DKM.

The Director of DKM Microfinance Company, Martin K. Dele, is in the custody of the Bureau of National Investigations (BNI) for allegedly misappropriating funds of his clients.
Dele, who was on the run, reported himself to the BNI in Accra yesterday and has since been placed in custody.
Three other persons facing similar charges were arraigned last Friday, January 8, 2016.
They were remanded till January 14, 2016.

A highly placed BNI source said Dele would be arraigned within 48 hours of his arrest.
“We will take him to court for a remand warrant,” it disclosed to the Daily Graphic in Accra yesterday.
Those arraigned last Friday were Monica Afriyie, Chief Executive Officer (CEO) of God Is Love Fan Club; Nortey Noel, a businessman, who is also an associate of Monica, and Charles Asum, the founder of Jastar Motors and Investment Company.
Afriyie (popularly called Maame Korkor) and Nortey pleaded not guilty to two counts of agreeing to act together to commit crime and dishonestly appropriating GH¢50,000 cash which was invested by a man identified as Adam Jagoi.
Asum, who is standing trial for dishonestly appropriating GH¢22, 500 that was invested by a man identified as Stephen Yaw Boateng, also pleaded not guilty.

Customers of DKM Diamond microfinance and ‘God is Love fun club’ are facing a hard time retrieving their funds as managers of the facilities are unable to account for them.
The BNI has subsequently arrested the owners of such facilities as part of investigations into their operations.
The Central Bank has also begun moves to revoke the licenses of some microfinance institutions for breach of its regulations.
Speaking at a press encounter at the Flagstaff House Tuesday, Mr. Mahama said it is unfortunate that some people are playing politics with the development.
“I don’t know DKM from Adam, my wife doesn’t know DKM from Adam. I only got to see him in the papers today after his arrest by the BNI but yet we are being linked to him.
”...If anybody promises I will give you 50 percent interest on your money, just know that he’s fooling you,” the President stated.
He also disclosed that the BNI has been instructed to go after properties and assets of such institutions.
According to him, the Central Bank will soon start disbursing the remaining funds in the accounts of DKM and 'God is Love' to their aggrieved customers.

Imported cement scuttles GH¢50m revenue

The country has lost over GH¢50 million due to the importation of some 500,000 tons of bagged cement, the Cement Manufacturers Association of Ghana (CMAG) has said.

According to the association, the realistic cost and freight values of imported bagged cement from China must not be less than $80 per tonne but owing to certain ridiculous measures being employed in the calculation of the cost and freight values at the ports, between $25 and $30 per tonne was being charged for imported bagged Chinese cement at the ports.

The association said that it has on countless occasions stressed the need to stop the importation of bagged cement since local manufacturers have installed capacity of about 7.4 million tonnes per annum whereas the current consumption is 5 million tonnes per annum, thereby leaving a surplus of 2.4 million tonnes.

A statement recently issued by the association and signed by its chairman, George Dawson-Ahmoah, said: “It’s mindboggling to see the ascendancy of imports of bagged cement from China despite persistent petitions that the manufacturers have installed capacities to meet local demand.”

It said that the menace poses a setback and challenge to the operations of local manufacturers which comprise GHACEM Limited, Diamond Cement Ghana, Savanna Diamond Cement and Western Diamond Cement.
 
The association has since April 2015 petitioned the Ministry of Trade, the Tariff Advisory Board, Commissioner of the Customs Division of the Ghana Revenue Authority, Parliamentary Select Committees on Finance and Trade/Industry, among others, on the influx of imported bagged Chinese cement and its attendant negative consequences on the economy and the local cement manufacturing industries.

“Government decided to undertake promotion of made-in-Ghana campaign to increase production and consumption of indigenous goods and services to expand the production capacities of Ghanaian companies. Yet, the expected reduction in Ghana’s imports will dramatically reduce our import bill that piles heavy amounts of pressure on the cedi to reduce its strength.

Credit: Daily Guide