By Kofi Ahovi
The new insurance premiums approved by the National Insurance Commission (NIC) would take off today May 10, 2010.
The new tariffs were supposed to have taken effect last week but were postponed to allow the commission to consult with the transport owners and driver unions before commencement.
Under the new tariffs approved by NIC on April 23, to correct the eight-year review interval and close the gap between third party insurers and comprehensive insurers, commercial vehicle owners would pay a 200% increase, while private vehicle owners will pay 150% increase.
Taxis would now pay GH₵232.28, mini buses of up to 20 passengers will pay GH₵268.88 and maxi buses of up to 33 passengers would pay GH₵280.28, while ambulances would pay GH₵218.60 annually.
Also, Third Party Property Damage (TPPD) limit had been raised from GH₵1,000 to GH₵2,000, while personal accident benefit which was previously GH₵500 has been increased to GH₵2,000.
Interestingly, the NIC has reduced the insurance tariff for comprehensive policy holders by a percentage point and increased the compensation for accident and personal damages.
It is however feared that the new increases would be translated into higher fares by the transport operators.
The increases are necessary because it is becoming increasingly difficult for insurance companies to pay claims.
Insurance companies quoting for motor insurance are expected to necessarily complete a quotation slip to determine how they arrive at their rates.
Saturday, May 8, 2010
Friday, April 30, 2010
GBC installs digital TV transmitters
Ghana Broadcasting Corporation (GBC) has launched its Digital Terrestrial TV (DTT) to mark its migration from analogue to digital broadcasting.
This was possible after GBC took delivery and installed a 5 kilowatt and 2 kilowatts transmitters in Accra and Kumasi respectively and plans to cover the entire country as soon as the government has finalized its policy directive. The installations are the first phase of the DTT infrastructure in the two cities.
According to the Director of GBC, William Apem-Darko, GBC would be unveiling a number of new channels very soon.
“For us in the broadcasting industry, it’s not just about digital television; it is also about the socio-economic development of this country. Despite the magnitude and the complexity in the task of digitalization, not to talk about the cost, it is clear that the long term benefit clearly outweighs the short term cost,” he noted.
GBC for the past year has been running a pilot system to showcase the system and test the various and complex integration of equipment and software that needs to be done.
Ghana has up to 2015 to migrate from analogue broadcasting to digital. All around the world, the migration to digital broadcast transmission technology has begun.
Countries already advanced in their migration programmes are France, United States, United Kingdom, Sweden, and New Zealand among others. In countries like Sweden, Finland and Mauritius, the analogue switch-off has already been completed.
This was possible after GBC took delivery and installed a 5 kilowatt and 2 kilowatts transmitters in Accra and Kumasi respectively and plans to cover the entire country as soon as the government has finalized its policy directive. The installations are the first phase of the DTT infrastructure in the two cities.
According to the Director of GBC, William Apem-Darko, GBC would be unveiling a number of new channels very soon.
“For us in the broadcasting industry, it’s not just about digital television; it is also about the socio-economic development of this country. Despite the magnitude and the complexity in the task of digitalization, not to talk about the cost, it is clear that the long term benefit clearly outweighs the short term cost,” he noted.
GBC for the past year has been running a pilot system to showcase the system and test the various and complex integration of equipment and software that needs to be done.
Ghana has up to 2015 to migrate from analogue broadcasting to digital. All around the world, the migration to digital broadcast transmission technology has begun.
Countries already advanced in their migration programmes are France, United States, United Kingdom, Sweden, and New Zealand among others. In countries like Sweden, Finland and Mauritius, the analogue switch-off has already been completed.
HFC bank profit dips in 2009
By Kofi Ahovi
HFC Bank Limited recorded a marginal drop of 3.80% in its profit after tax of GH₵5.849 million during the 2009 fiscal year compared to GH₵6.08 million in 2008.
This, the Board Chairman, Nana Agyei Doku, at the Bank’s Annual General Meeting (AGM), explained that it was due to an increased in the cost of funding and continuous expansion of branch network.
However, its loans and advances stood at GH₵157.5 million, a growth of
11.29%. Deposits also increased by 37.96% from GH₵85.2 million in the previous year to GH₵177.6 million in 2009.
The HFC group interest income also rose by 37.9% to GH₵49.2 million from GH₵35.7 million in the previous year.
Based on its achievement for the 2009 fiscal year, the bank paid a divided of GH₵0.015 compared to GH₵0.01 the previous year.
The bank’s mortgage portfolio grew by 32.3% from GH₵37.9 million in 2008 to GHc50.1 million in 2009.
The consumer loans portfolio decreased from GH₵17 million in 2008 to GH₵10.2 million in 2009. Also the Public Sector Affordable Housing Scheme managed by the bank achieved a gross portfolio of GH₵4.44 million, providing 172 new homes to public servants.
HFC’s lending to corporate institutions and SMEs stood at GH₵103.4 million, an increase of 13.10%.
On the bank’s subsidiaries, HFC Investment Services Limited’s managed funds contributed GH₵ 220,736 to the group’s earnings for the year under review, while HFC Realty’s contribution was GH₵103,603 for the same year.
Shareholders fund increased to GH₵32million in 2009 from GH₵27.5 million in 2008.
According to the MD, Asare Akuffo, The bank managed to achieved significant strides of it’s objectives for 2009 which included branch network expansion, improved loan administration and recovery and recapitalization.
In the year under review, four new branches and five Automatic Teller Machines (ATMs) were added to the bank’s network. The bank is now represented in all but three of the 10 regions of Ghana.
In a related development, the bank cut a sod for the commencement of the construction of a six classroom block and offices at Kotobabi 2 basic school in Batsonaa in Accra.
Cutting the sod, Asare Akuffo, recounted that the area was one of the first vicinities that the bank started its real estate investments, “this motivated as to contribute to education infrastructure in this community”.
He added that, the bank was committed to its corporate social responsibility, adding the bank has undertaken similar exercises in Ashanti Akyim in the Ashanti Region and Krobo Adumasi in the Eastern region.
The assistant metro director for the Tema Metropolitan Assembly, Philomena Baltes, commended the bank for the initiative to rebuild one of the deprived schools in the metropolis.
She however, requested the bank to also sponsor needed but brilliant students in the metropolis to senior high level.
The head mistress of the school, Gifty Mawusi, expressed appreciation to HFC for the gesture, adding the facility will have a great impact in improving education in the school.
HFC Bank Limited recorded a marginal drop of 3.80% in its profit after tax of GH₵5.849 million during the 2009 fiscal year compared to GH₵6.08 million in 2008.
This, the Board Chairman, Nana Agyei Doku, at the Bank’s Annual General Meeting (AGM), explained that it was due to an increased in the cost of funding and continuous expansion of branch network.
However, its loans and advances stood at GH₵157.5 million, a growth of
11.29%. Deposits also increased by 37.96% from GH₵85.2 million in the previous year to GH₵177.6 million in 2009.
The HFC group interest income also rose by 37.9% to GH₵49.2 million from GH₵35.7 million in the previous year.
Based on its achievement for the 2009 fiscal year, the bank paid a divided of GH₵0.015 compared to GH₵0.01 the previous year.
The bank’s mortgage portfolio grew by 32.3% from GH₵37.9 million in 2008 to GHc50.1 million in 2009.
The consumer loans portfolio decreased from GH₵17 million in 2008 to GH₵10.2 million in 2009. Also the Public Sector Affordable Housing Scheme managed by the bank achieved a gross portfolio of GH₵4.44 million, providing 172 new homes to public servants.
HFC’s lending to corporate institutions and SMEs stood at GH₵103.4 million, an increase of 13.10%.
On the bank’s subsidiaries, HFC Investment Services Limited’s managed funds contributed GH₵ 220,736 to the group’s earnings for the year under review, while HFC Realty’s contribution was GH₵103,603 for the same year.
Shareholders fund increased to GH₵32million in 2009 from GH₵27.5 million in 2008.
According to the MD, Asare Akuffo, The bank managed to achieved significant strides of it’s objectives for 2009 which included branch network expansion, improved loan administration and recovery and recapitalization.
In the year under review, four new branches and five Automatic Teller Machines (ATMs) were added to the bank’s network. The bank is now represented in all but three of the 10 regions of Ghana.
In a related development, the bank cut a sod for the commencement of the construction of a six classroom block and offices at Kotobabi 2 basic school in Batsonaa in Accra.
Cutting the sod, Asare Akuffo, recounted that the area was one of the first vicinities that the bank started its real estate investments, “this motivated as to contribute to education infrastructure in this community”.
He added that, the bank was committed to its corporate social responsibility, adding the bank has undertaken similar exercises in Ashanti Akyim in the Ashanti Region and Krobo Adumasi in the Eastern region.
The assistant metro director for the Tema Metropolitan Assembly, Philomena Baltes, commended the bank for the initiative to rebuild one of the deprived schools in the metropolis.
She however, requested the bank to also sponsor needed but brilliant students in the metropolis to senior high level.
The head mistress of the school, Gifty Mawusi, expressed appreciation to HFC for the gesture, adding the facility will have a great impact in improving education in the school.
GOVT URGED TO AVERT ANOTHER ECONOMIC CRISES
By Jeorge Wilson Kingson, Ho
Government has been urged to take appropriate measures and formulate the right policies to ensure that in the unforeseen event of another global economic crisis as experienced recently its impact on the country will not be severely felt.
Deputy Secretary-General of the Ghana Trades Union Congress (GTUC), Dr. Yaw Baah, who sounded this warning, last week however gave government high marks for introducing strong fiscal policy measures in dealing with the crisis.
He praised policies such as the freeze on public sector employment, the reduction in the number of ministries, and the rationalization of subsidies to State Owned Enterprises (SOEs) as well as the rationalization of public sector wages and other expenditures including postponing the implementation of the single spine salary structures as very good moves that will bring the economy back on track.
He on the other hand slammed the current administration for its decision to go back to the Britton Wood institutions cup in hand saying it was a trivial decision. “I will advice the government to do anything to recover the economy but go back to the IMF. You see, the IMF controls you and forces you to listen to them and in such situations your options are limited and because you are the one who came begging you have no choice”
Dr. Baah, stated this last week at Ho when he addressed financial and economic journalists at a capacity building workshop on the aftermath of the 2008 financial and economic crisis. The workshop which was sponsored by the Friedrich Ebert Stiftung was under the theme “Beyond the 2008 financial end economic crisis: Assessing government response to the crisis in Ghana”
According to him governments all over the world which experienced the financial crisis including third world countries have started putting in place measures to ensure that the impact of future crisis is not as severe as that of 2008 and Ghana must not be different.
“The IMF is synonymous with short term measures but Ghana’s problem is long term. As long as we keep depending on the IMF to give us short time measures for our long time problems we will never get there. Ghanaians would have been better off without the IMF. Ghana is still waiting for that bold leader who will take drastic decisions to change the paradigm” Dr. Baah stated.
Participants at the two day workshop in a communiqué issued after the programme urged government to formulate policies to protect the economy and review policies that are not helpful to the Ghanaian financial system such as efforts at increasing revenue mobilization and making the private sector more competitive.
They urged government to develop negotiating capacity to effectively engage development partners on issues of national interest and further develop and strengthen institutions to deliver efficiently on government policies and programmes devoid of corruption.
The group identified sectors of the economy such as the agricultural sector, education sector as areas that government must focus spending its revenue effectively on so as to add value to primary agro products.
“Government should pursue the ECOWAS and African Union agenda by promoting inter regional trade, use of common currency in Africa, the protocols of free movement of people across region, and undertake strategic and active industrialization programmes and policies for the long term transformation of the economy by revamping collapsed state industries.” The communiqué stated.
They also urged government to effectively regulate the financial institutions and the financial market to protect the financial sector and the economy as a whole from future financial shocks and also adopt long term strategies to deal with structural problems such as prioritizing and developing the energy sector to be more efficient and effective.
Government has been urged to take appropriate measures and formulate the right policies to ensure that in the unforeseen event of another global economic crisis as experienced recently its impact on the country will not be severely felt.
Deputy Secretary-General of the Ghana Trades Union Congress (GTUC), Dr. Yaw Baah, who sounded this warning, last week however gave government high marks for introducing strong fiscal policy measures in dealing with the crisis.
He praised policies such as the freeze on public sector employment, the reduction in the number of ministries, and the rationalization of subsidies to State Owned Enterprises (SOEs) as well as the rationalization of public sector wages and other expenditures including postponing the implementation of the single spine salary structures as very good moves that will bring the economy back on track.
He on the other hand slammed the current administration for its decision to go back to the Britton Wood institutions cup in hand saying it was a trivial decision. “I will advice the government to do anything to recover the economy but go back to the IMF. You see, the IMF controls you and forces you to listen to them and in such situations your options are limited and because you are the one who came begging you have no choice”
Dr. Baah, stated this last week at Ho when he addressed financial and economic journalists at a capacity building workshop on the aftermath of the 2008 financial and economic crisis. The workshop which was sponsored by the Friedrich Ebert Stiftung was under the theme “Beyond the 2008 financial end economic crisis: Assessing government response to the crisis in Ghana”
According to him governments all over the world which experienced the financial crisis including third world countries have started putting in place measures to ensure that the impact of future crisis is not as severe as that of 2008 and Ghana must not be different.
“The IMF is synonymous with short term measures but Ghana’s problem is long term. As long as we keep depending on the IMF to give us short time measures for our long time problems we will never get there. Ghanaians would have been better off without the IMF. Ghana is still waiting for that bold leader who will take drastic decisions to change the paradigm” Dr. Baah stated.
Participants at the two day workshop in a communiqué issued after the programme urged government to formulate policies to protect the economy and review policies that are not helpful to the Ghanaian financial system such as efforts at increasing revenue mobilization and making the private sector more competitive.
They urged government to develop negotiating capacity to effectively engage development partners on issues of national interest and further develop and strengthen institutions to deliver efficiently on government policies and programmes devoid of corruption.
The group identified sectors of the economy such as the agricultural sector, education sector as areas that government must focus spending its revenue effectively on so as to add value to primary agro products.
“Government should pursue the ECOWAS and African Union agenda by promoting inter regional trade, use of common currency in Africa, the protocols of free movement of people across region, and undertake strategic and active industrialization programmes and policies for the long term transformation of the economy by revamping collapsed state industries.” The communiqué stated.
They also urged government to effectively regulate the financial institutions and the financial market to protect the financial sector and the economy as a whole from future financial shocks and also adopt long term strategies to deal with structural problems such as prioritizing and developing the energy sector to be more efficient and effective.
Monday, April 19, 2010
BOG slashes policy rate by 1%
…Pressure on banks to cut lending rates
By Elorm DESEWU
Universal banks in the country would this week begin slashing their respective base lending rates between 50 and 100 basis points in response to the Monetary Policy Committee (MPC) of the central bank’s policy rate cut.
The MPC, led by the governor of the Bank of Ghana (BOG), Kwesi Amissah-Arthur, cut the policy rate by 100 basis points to settle at 15%, a reduction from 16%.
The policy rate, which serves as a benchmark, is the rate at which the central bank does overnight lending to universal banks in the country.
It serves as a basis for the banks in setting their respective base lending rates, as well as lend to their most favoured customers.
Headline inflation dropped from its March 2009 level of 20.5 per cent to 13.2 per cent last month. Monthly changes in the Consumer Price Index (CPI) continue to grow at a pace lower than trends observed in 2009. Food inflation, which was 18.4 per cent in March 2009, declined steadily to 7.4 per cent by March 2010.
Similarly, non-food inflation, which was 22.0 per cent in March 2009, declined to 17.6 per cent by March 2010.
According to Amissah-Arthur, interest rates have generally declined along the full spectrum of the yield curve - 8.7 percentage points on the lower end and 4 percentage points at the higher end - since December 2009.
The market observed shifts towards long-dated instruments, in line with easing inflation expectations.
Between December 2009 and mid-April 2010, the benchmark 91-day Treasury bill rate went down by 8.7 percentage points to 13.9 per cent. Similarly, the 182-day Treasury bill rate declined by 11 percentage points to 14.4 per cent.
The rate on the 1-year note fell by 5.0 percentage points to 15.0 per cent, while the 2-year fixed rate note went down by 7.3 percentage points to 16.3 per cent. The 3-year fixed rate bond also fell by 4.0 percentage points to 14.9 per cent.
On the interbank market, the average overnight interbank interest rates fell by 1.4 percentage points to 14.9 per cent during the same period.
After staying largely static initially, commercial banks have also begun revising their base and lending rates downwards in line with the general decline in interest rates and easing inflation expectations.
However, the declines have only been marginal and have not kept pace with the recent reductions in the policy and money market rates.
Average base rates of the banks were revised downward, after the previous policy rate cut, by 200 basis points, in February, into the range of 24.7 – 32.0 per cent, with an industry average of 29.9 per cent. Similarly, average lending rates were revised downward by 0.61 percentage points to 32.1 per cent into the range 23.6 – 39.9 per cent.
By Elorm DESEWU
Universal banks in the country would this week begin slashing their respective base lending rates between 50 and 100 basis points in response to the Monetary Policy Committee (MPC) of the central bank’s policy rate cut.
The MPC, led by the governor of the Bank of Ghana (BOG), Kwesi Amissah-Arthur, cut the policy rate by 100 basis points to settle at 15%, a reduction from 16%.
The policy rate, which serves as a benchmark, is the rate at which the central bank does overnight lending to universal banks in the country.
It serves as a basis for the banks in setting their respective base lending rates, as well as lend to their most favoured customers.
Headline inflation dropped from its March 2009 level of 20.5 per cent to 13.2 per cent last month. Monthly changes in the Consumer Price Index (CPI) continue to grow at a pace lower than trends observed in 2009. Food inflation, which was 18.4 per cent in March 2009, declined steadily to 7.4 per cent by March 2010.
Similarly, non-food inflation, which was 22.0 per cent in March 2009, declined to 17.6 per cent by March 2010.
According to Amissah-Arthur, interest rates have generally declined along the full spectrum of the yield curve - 8.7 percentage points on the lower end and 4 percentage points at the higher end - since December 2009.
The market observed shifts towards long-dated instruments, in line with easing inflation expectations.
Between December 2009 and mid-April 2010, the benchmark 91-day Treasury bill rate went down by 8.7 percentage points to 13.9 per cent. Similarly, the 182-day Treasury bill rate declined by 11 percentage points to 14.4 per cent.
The rate on the 1-year note fell by 5.0 percentage points to 15.0 per cent, while the 2-year fixed rate note went down by 7.3 percentage points to 16.3 per cent. The 3-year fixed rate bond also fell by 4.0 percentage points to 14.9 per cent.
On the interbank market, the average overnight interbank interest rates fell by 1.4 percentage points to 14.9 per cent during the same period.
After staying largely static initially, commercial banks have also begun revising their base and lending rates downwards in line with the general decline in interest rates and easing inflation expectations.
However, the declines have only been marginal and have not kept pace with the recent reductions in the policy and money market rates.
Average base rates of the banks were revised downward, after the previous policy rate cut, by 200 basis points, in February, into the range of 24.7 – 32.0 per cent, with an industry average of 29.9 per cent. Similarly, average lending rates were revised downward by 0.61 percentage points to 32.1 per cent into the range 23.6 – 39.9 per cent.
Dev’t fund for private media houses takes off
By Solace AMANKWA
The Media Foundation for West Africa (MFWA) has launched the West African Media Development Fund (WAMDeF) in Accra.
The fund is to be used to improve and expand access to finance and technical assistance to private media entrepreneurs by lending and investing in private media enterprises.
Products that would be offered by the fund include quick operating loans of up to $10,000, repayable between 60- 120 days, short term loans between $10,000 and $50,000, repayable between 120 days and two years, medium term loans between $50,000 and $100,000, repayable between three and five years and long term loans between $100,000 and $200,000, repayable between five and seven years.
The loans would attract small interests up to about 10%t to be charged on case by case basis
This would provide innovative and customized financial and capacity-building solutions to private media companies in West Africa.
The WAMDeF would also strive to engender the emergence of successful, vibrant, dynamic, diversified and sustainable media enterprises, optimize value to stakeholders and contribute to the strengthening of democracy in the ECOWAS region.
The Executive Director of the Foundation, Professor Kwame Karikari, speaking at the launch, disclosed that the idea of setting up the fund was conceived in 2005 by MFWA, due to the rapid change in the media landscape.
He said the MFWA was motivated by the severely challenging economic and financial situations of the media in the region, where most of the privately owned and independent media organizations were established on weak capitalization and under shaky economic regimes.
The Chief Executive Officer of the African Media Initiative, Adamou Mahtarba, who launched the fund, last week, observed that the media was the oxygen of the body of democracy, adding that without it, media democracy would not thrive.
He said the fund would be of great importance to the media in Africa, which is faced with capital, political challenges and the rapidly changing technological landscape.
He urged all private media companies to take advantage of the opportunity to improve their working conditions.
"It was established as a regional, independent, non-profit, non-governmental organization to defend and promote the rights and freedoms of the media, and generally, to help expand the boundaries of freedom of speech and expression in West Africa," he said.
The Chief Executive Officer of WAMDeF, Kwesi Owusu Asare, noted that the fund was targeted at emerging and already established private media enterprises with real or potentially solid management and financial performance in the sub- region.
He said such media groups should also have the potential to add value to democratic processes in the sub-region by increasing access to information, encouraging political dialogue and catering to a diverse range of viewpoints among members of the society.
The Media Foundation for West Africa (MFWA) has launched the West African Media Development Fund (WAMDeF) in Accra.
The fund is to be used to improve and expand access to finance and technical assistance to private media entrepreneurs by lending and investing in private media enterprises.
Products that would be offered by the fund include quick operating loans of up to $10,000, repayable between 60- 120 days, short term loans between $10,000 and $50,000, repayable between 120 days and two years, medium term loans between $50,000 and $100,000, repayable between three and five years and long term loans between $100,000 and $200,000, repayable between five and seven years.
The loans would attract small interests up to about 10%t to be charged on case by case basis
This would provide innovative and customized financial and capacity-building solutions to private media companies in West Africa.
The WAMDeF would also strive to engender the emergence of successful, vibrant, dynamic, diversified and sustainable media enterprises, optimize value to stakeholders and contribute to the strengthening of democracy in the ECOWAS region.
The Executive Director of the Foundation, Professor Kwame Karikari, speaking at the launch, disclosed that the idea of setting up the fund was conceived in 2005 by MFWA, due to the rapid change in the media landscape.
He said the MFWA was motivated by the severely challenging economic and financial situations of the media in the region, where most of the privately owned and independent media organizations were established on weak capitalization and under shaky economic regimes.
The Chief Executive Officer of the African Media Initiative, Adamou Mahtarba, who launched the fund, last week, observed that the media was the oxygen of the body of democracy, adding that without it, media democracy would not thrive.
He said the fund would be of great importance to the media in Africa, which is faced with capital, political challenges and the rapidly changing technological landscape.
He urged all private media companies to take advantage of the opportunity to improve their working conditions.
"It was established as a regional, independent, non-profit, non-governmental organization to defend and promote the rights and freedoms of the media, and generally, to help expand the boundaries of freedom of speech and expression in West Africa," he said.
The Chief Executive Officer of WAMDeF, Kwesi Owusu Asare, noted that the fund was targeted at emerging and already established private media enterprises with real or potentially solid management and financial performance in the sub- region.
He said such media groups should also have the potential to add value to democratic processes in the sub-region by increasing access to information, encouraging political dialogue and catering to a diverse range of viewpoints among members of the society.
Govt to pay NHIS arrears
By Kofi AHOVI
The government will from next week begin clearing the nationwide unpaid claims of the National Health Insurance Scheme (NHIS) totaling GH¢50 million.
This would cover all outstanding arrears to service providers up to February, this year.
The announcement comes as a big relief to service providers, who have been complaining of delays in claims’ refund.
The delays, they say, were affecting their operations, especially, drugs re-stock, and procurement of other supplies and equipment, a situation which has resulted in growing anxiety among subscribers about the possible collapse of the scheme.
According to a source at the NHIA, the authority is determined to maintain a clean sheet.
“By June, this year, the Authority would no longer allow itself to be accused of delaying payment and would keep to payment in arrears of not more than three months as provided for in the law,” the source stated.
The source stated that the target is to approach a maximum of two months’ arrears by the close of the year.
However, recent clinical audits of the district mutual schemes across the country have revealed massive abuses and fraudulent activities by some scheme officials and service providers.
Three scheme managers and some officers are in prison custody, while 33 others are on interdiction.
Sylvester Mensah, CEO of NHIS, has vowed that the NHIA would tackle corrupt practices and inject sanity into the system, adding that the authority would also cooperate with all stakeholders to find appropriate mechanisms to sustain the operations of the scheme
Central to these efforts, a new legislation has been drawn up which will make the 145 various district mutual schemes part of the national scheme, supervised directly by the NHIA.
The government will from next week begin clearing the nationwide unpaid claims of the National Health Insurance Scheme (NHIS) totaling GH¢50 million.
This would cover all outstanding arrears to service providers up to February, this year.
The announcement comes as a big relief to service providers, who have been complaining of delays in claims’ refund.
The delays, they say, were affecting their operations, especially, drugs re-stock, and procurement of other supplies and equipment, a situation which has resulted in growing anxiety among subscribers about the possible collapse of the scheme.
According to a source at the NHIA, the authority is determined to maintain a clean sheet.
“By June, this year, the Authority would no longer allow itself to be accused of delaying payment and would keep to payment in arrears of not more than three months as provided for in the law,” the source stated.
The source stated that the target is to approach a maximum of two months’ arrears by the close of the year.
However, recent clinical audits of the district mutual schemes across the country have revealed massive abuses and fraudulent activities by some scheme officials and service providers.
Three scheme managers and some officers are in prison custody, while 33 others are on interdiction.
Sylvester Mensah, CEO of NHIS, has vowed that the NHIA would tackle corrupt practices and inject sanity into the system, adding that the authority would also cooperate with all stakeholders to find appropriate mechanisms to sustain the operations of the scheme
Central to these efforts, a new legislation has been drawn up which will make the 145 various district mutual schemes part of the national scheme, supervised directly by the NHIA.
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