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STX-GOG Deal Only Echohs Our State Of National Bankrupcy In Ghana

Tue, 3 Aug 2010 Source: Yekin, Kofi Ali Abdul

There is every reason for concerns about the pressure of the need for the Ghanaian

housing situation to be urgently addressed. Every effort by anybody to arrest the

situation is a welcome thing and more so by the popularly democratic elected

president of Ghana. Of course this is one of the reasons why the president was

elected by the masses of Ghana. However, the recent effort by the sitting government

to solve this problem has received reactions from almost every quarter of the

Ghanaian socio-eco-political constituents.

Everything possible has been employed to kick against this seemingly noble venture,

but why? To the common mind, one could not just imagine why anybody in his/her

normal sense should be stopping the sitting government of Ghana from embarking on

this venture that is being vendor as the solution to the housing problems of Ghana.

THE REALITITES OF STX-GOG SAGA

What is practically unfolding itself in Ghana today by all concerned is exposing the

anomalies of the STX-GOG hosing project deal as well as preparing the premises for

exploiting the situation by making political capital out of it. This does not even

exclude the sitting government of the day.

Based on all arguments from all quarters, particularly the NPP faction in Ghana

whose eight years of government exhibited identical lack of consideration for

accountability in the employment of the resources of the people of Ghana, is this

call for the termination of the STX deal the best option for Ghana? Well, if the

interest of Ghana is to stand as the most paramount concerns of every one of us and

we are convinced that we are all equally responsible for any negative outcome in the

long run, then the answer is yes!

IS THE SITTING PRESIDENT OF GHANA ON TOP OF THE GAME IN THE STX SAGA?

In deed it is a relief to learn that the bill to parliament on this issue has been

recalled by the president for review. This position in itself is a clear indication

that the sitting government did not do its home work properly before embarking on

the project in the first place. It is also an indication that the president is not

on top of the game or even far from a project of this magnitude that will have

everything to do with his legacy as a president of Ghana at this point in time.

Based on what we are experiencing, it is becoming obvious that the president is just

a novice as any one of us, as far as the STX project is concern. The president is

just being informed like anyone of us about what is happening while the real job is

an exclusive business of some few, who are not directly responsible to the Ghanaian

electorate.

HOW INFORMED ARE GHANAIANS ON STX?

The most obvious picture about this STX contract is the element of inconsistency and

a clear lack of transparency surrounding the project that is making it look like

some doggy deal being imposed on the people of Ghana by some faceless interest that

are actually not accountable to Ghanaians but to their pay masters by their selfish

agendas.

In all this, certain fundamental facts are missing and most of our

socio-eco-political commentators are struggling to unearth these things but for

their personal circumstances, the real truth is yet to be told. Who will be blaming

our current Ghanaian political activists, as victims of the realities of today’s

Ghanaian political bankrupted state, for not being able to unearth the truth?

Predominant among most Ghanaian political commentators on this STX concerns is the

consensus that unless Ghana commit itself to external debt, no houses in Ghana can

be build by the Ghanaian government for Ghanaians. For or against, one thing that

all these activists share in common is that the destiny of the Ghanaian can never be

of any good to him/her unless he/she is subjected to external debt of slavery.

Kwasi Pratt Jnr. Kwaku Baku, Tony Adu, Raymond Archer, do all share a common belief

on this.

CONSIDERATIONS FOR CONCERNS ABOUT THE STX-GOG DEAL?

In our effort to expose the truth, we shall embark on asking some questions for you

to make your own conclusions;

1. Going by the Minister of Works and Housing, Albert Abongo’s interview

recently to the Ghanaian media that the government will construct 100,000 housing

units over the next eight years through public-private partnerships as part of its

efforts to meet rising housing demand in the country, is this STX-GoG deal of

200,000 houses across Ghana not the private-public partnership in question?

2. The issue before us here is about housing for Ghanaians and how best the

Government of Ghana can rise up to the challenge of addressing the concerns about

meeting up with the housing needs of Ghanaians. Does this not means the Ghanaian

government resorting to STX which is a Korean Company as the best way to address our

housing needs a clear expression of total lost of confidence on local builders? Does

this as well not indicates that the privatization of the State Housing Corporation

and other government ventures have failed as what is coming out of all this is our

own government having more confidence in external builders as an alternative to our

local builders?

3. Now that suddenly there has sprung up overnight an offshoot of the mother

Korean company in Ghana tagged “STX Ghana Limited” just to full fill the condition

of seeing the deal through than a company in Ghana for a genuine intention of doing

business before this uproar, is this not enough premises for the masses of Ghana to

feel the unbearable stink the whole deal?

4. Since technically the STX Ghana come into existence just for the sole

purpose of obtaining contract and the most likelihood that the real faces behind the

STX masquerade are individuals within the sitting government with the STX Ghana

Limited as a mere front to con Ghanaian, is this not obvious that the company will

as well cease to exist should this project fail to see the light of the day?

5. On the subject matter itself, housing comprises of Social or Commercial

housing. In the case of Social housing provision, the focus is more about need than

the ability of the beneficiary, in this case Ghanaians. Since about 65% of the

Ghanaian population live on far below $10US per day and almost every one of these

people is homeless, should anyone take this bogus official position of 100,000

housing deficit figures as a joke or anything serious?

6. With the understanding that each house will be costing between $30,000-

$40,000 spread over 30 years, by the Ghanaian standard this will automatically

qualify for a Commercial Housing project. If this is going to be a private interest

with the sole aim being driven by profit instinct, why should the Ghanaian tax payer

be the one footing the bill as is being made clear in this case?

7. Who is actually going to be the owner of the 200,000 housing units to be

built in Ghana; is it the STX or the Ghanaian government?

8. If it is going to be the STX as it is now being the case; either as STX

Korea or STX Ghana LTD., how come the Ghana government being the sovereign sole

guarantor of the loan STX is obtaining from its lenders?

9. If, rather the housing unites belongs to the Ghanaian government and all

that STX is doing is to serve as a construction firm for the Ghanaian government,

does this not mean that the Ghanaian government should be the one to obtain its own

loan and then contract STX to do the job of house building?

10. If it is a joint venture between the Ghanaian government and STX, then is it

not obligatory on both parties to be the signatories to the collection of loans and

equally liable in case of default in payment as a result of unforeseen

circumstances?

11. If something goes wrong, like similar loans in the pasts Ghana obtained for

capital projects that ended up unviable by changes in the prearranged circumstances

to meet up with planned expectations, will STX be the one to bear the consequences

or this will be added to the stock of debts the Ghanaian government owe to external

interests?

12. It is very common these days to hear individuals in the current government of

Ghana publically informing us Ghanaians that the money for the venture is something

the STX borrowed or loaned from foreign investors to build houses in Ghana; is this

not in the interest of Ghanaians to know who this benevolent lender is since our

government is said to be the guarantor of the said loan?

13. If the $10 billion loan is coming from the Korean government as we are being

made to believe by some of our government officials and spokes persons, is the loan

to the Ghana government or to STX?

14. If the debtor to be is STX, why must the Ghanaian government put itself

forward as the debtor on behalf of STX? Considering the fact of the reality of

managing the loan, STX will be much more the manager of its business and its loan

than it shall be of the Ghana government, how then vulnerable is the interest of the

Ghanaian?

15. If STX is in Ghana to do business to make profit like any other businesses,

why should the Ghanaian government in the name of the people and tax payers of Ghana

allow itself to be roped so much into such a private debt?

16. If our current experience with Kosmos is anything to learn from; is it not

good to know if the contract with STX is transferable or not?

17. Now that we are being told that the Ghana government on behalf of the people

of Ghana is the guarantor of this loan being obtained by STX Korea or Ghana, and the

fact that in the business world any company can go into liquidation and its asset

put under administration; what will be the fate of the state of Ghana when it will

have to be forced to deal with a third party other than STX just due to how much we

allowed our self to be tied to the loan as its guarantor?

18. In the worst case scenario, such eventuality could result in a third party, in

this case Ghana could be faced with an arch enemy like Kosmos, who will be selling

her interest in Ghana to another third party at 4,000% profit, what will be the fate

of the poor people of Ghana?

19. In the quagmire of the STX-GoG saga, there is every indication that mortgaging

the houses is the main intention of both the Ghanaian government’s share of the

houses to the security ser vices and that of the STX share to the Ghanaian public;

has the government indeed taken a second look at the long term consequences of this?

20. On the position that the STX is going to be selling its own share of the

houses as mortgage to be paid instalmentaly by Ghanaians to STX, what happens to the

poor Ghanaian when inflation set in as our currency is highly prone to fluctuations?

Is the poor Ghanaian going to be at the mercy of the Casino Bankers and their

financiers fiddling with the rate of interest? Is our government going to be

deciding the rate of repayment and its changes or the whole thing is going to be by

the volatile “market forces?”

21. How shall the interest of the poor Ghanaians be protected against the

organized Korean firm whose sole objective is to make as much profit as possible

from the Ghanaian?

22. How painful shall the situation be when one day the Ghanaian wake up to the

reality that our current government that took Ghanaians into such obnoxious deal did

not only gave the Korean mouth wetting concession of all types but also the

government guarantor of the loan for the private deal?

23. How worse will the situation be if the Ghanaian should realize that in

addition to all the benefits that Ghana government is making available to the STX

Korean firm of which no any other firm has ever enjoyed in the history of Ghana,

there is also a legal backing enough to make the Ghanaian defenceless before the

Koreans on the land of Ghana in ensuring that the monthly payment is unconditionally

met at what ever cost?

24. In limiting our selves to the share of the Ghana government‘s allocation of

the deal to the Ghanaian security services, who in turn will becoming owners of the

houses after payment is completed, what happens to the Ghanaian public security

personnel when he/she is out of job?

25. Going by the realities of our time, it is not uncommon for the IMF and the

World Bank to make it mandatory to the Ghanaian government to lay off existing

public servants of which the so called Ghanaian security forces are part of; what

will happen to the monthly mortgage commitments of the public servants who have been

laid off and his/her salary stopped?

26. If the Ghana government is going to go on with its commitment to STX despite

lying off these public servants, how will our government sustain such commitment in

a circumstances with its own income fallen?

27. It is not uncommon to hear academicians making the remark that every existing

asset of the Ghanaian government is already tied down to one debt commitment or the

other; with our oil prospective coming into reality, does the Ghanaian see the

connection between the expected income of Ghana and the ploy to rope the nation and

its people into an advance debt?

28. Are we not seeing a future in which subsequent governments will be pretending

that they are the good guys to get the Ghanaians out of these mess by surrendering

our oil field as a means of saving the people from losing their homes?

THE CONCERNS OF OUR NATIONAL SECURITY

What make this particular case a serious concern is that it is an intentionally well

calculated policy to trap the Ghanaian into a national debt that will make

generations to come so helpless in their payment method and a commitment to foreign

interest. A house is a basic need of life and so a right to every citizen of Ghana.

It is beyond any word to explain the danger of putting the right of the Ghanaian by

the Ghana government in the hand of the Korean.

Well, there is no doubt that we desperately need houses for our teaming population

but making political or financial capital out of the plight of our people by those

that were entrusted with the sovereignty of the people is a grievous concern. We

were all relieved when the bill last week was withdrawn from parliament for

reconsideration. With basically nothing done to it as most of the concerns for the

withdrawal actually did not take into account what we have highlighted above, we

appeal to all well meaning Ghanaians to put their differences and sentiment aside to

allow commonsense to reign.

What is happening in Ghana today is a clear mockery of democracy in which self

centred interest precedes the will of the people. We are now in a state of

deceptions in which our public state is now being run as a private state. Cone

business men like wolves parade themselves daily in our political corridors dangling

financial carrots to our entrusted public servants. We are now being ask through our

parliament to confirm a deal that will be legally be binding on us in the future,

even after a change of governments.

OUR SELF DENIAL IN THIS STATE OF BANKRUPTCY

Our state of bankruptcy is also so severe that few lenders are willing to lend us

money directly as a state. We are also showing a clear indication that we are ready

to stoop so low just for a foreign loan as no company is even willing to come into

our state for independent investment unless our government put her people at the

mercy of such company. Thus, taxation is never enough to finance public project such

as public housing and other things. So rather than employing government revenue to

embark in building house for the public as public investment into its citizen and

job creation, the state of Ghana can only resort to external borrowing and external

employees as contractors to work for the unemployment ridden society of Ghana. In

the developed European and the American nation, government resort to the local tax

payer’s money to invest in local project by its own citizens thereby creating jobs

in time of unemployment.

Conclusion

In conclusion, it is no doubt that every Ghanaian need a roof over his/her heads

which make the issue an urgent one. It must however not be doubted that the modern

con man play on the state of our vulnerable minds. We thus appeal to all

progressives to stand up now to defend Ghana from these miscalculated intentions to

enslave us by those we trusted with our mandate to serve us. We might wish it goes

away but our action must be more than just ordinary wishes. If the proponents of the

bill have withdrawn it for the first time, definitely they only presented it to us

in the first place to test how wise or blind we are. Their withdrawal as well should

not be considered as cowardice but an understanding of the dangers in the deal.

However, we must not push our luck too far before the selfish financial interest of

some of the unrepentant criminals within the corridors of the reigning government

becloud our common conscience. We must make it clear that this is not in the

interest of the Ghanaian or Ghana, so it must be returned to the Koreans in Korea.

God Bless our homeland Ghana and Long Live Ghana

Kofi Ali Abdul Yekin

Coordinator - Action Group of Africa (AGA)

+044-7984445344 +233-243377829 www.aga4fed.com

Columnist: Yekin, Kofi Ali Abdul