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Tag: PWC

  • PWC recommends transitioning to a digital method for collecting road tolls

    PWC recommends transitioning to a digital method for collecting road tolls

    In the 2024 mid-year budget review, PricewaterhouseCoopers (PWC) advocates for adopting a digital method for reintroducing road and bridge tolls.

    The firm highlighted that adopting digital technologies, similar to those used in other revenue collection areas, could notably decrease revenue loss and corruption.

    PWC suggested that the government should introduce a system where drivers utilize prepaid swipe cards connected to their Ghana Card, the national ID.

    “Our recommendation is that government goes digital as they have done in other aspects of revenue collection. We believe providing drivers with prepaid swipe cards which are linked with their identity card (Ghana Card) will prevent revenue leakage and corruption, and also make the toll collection seamless,” the firm stated in its digest.

    Moreover, PWC emphasized that the revenue from tolls should be allocated specifically for the construction and upkeep of highways and bridges, ensuring that the funds are used as intended.

    The government’s proposal to reinstate road and bridge tolls in 2025 has generated significant debate. Road tolls were suspended in 2022 and replaced by the electronic transactions levy (E-levy). Although the E-Levy initially faced opposition, it managed to generate GH¢1.19 billion in 2023. However, its effectiveness may be jeopardized by recent trends in the mobile money (MoMo) sector.

    Data from the Bank of Ghana (BoG) shows a noticeable decrease in mobile money transactions. In June 2024, the total number of MoMo transactions dropped to 644 million, down from 668 million in May 2024.

    This decline also affected the total transaction value, which fell from GH¢234.3 billion to GH¢224 billion. Despite the overall decrease, the float balance—representing funds held in mobile money accounts—slightly increased from GH¢21.1 billion to GH¢22.2 billion.

    The sharp reduction in MoMo transactions could undermine the effectiveness of the E-Levy, a vital revenue source for the government. In light of these developments, PWC’s recommendation for a comprehensive digital toll collection system appears particularly timely.

    “We expect that the new framework will be as robust as possible, incorporating digitalisation in this space of revenue generation,” PWC mentioned.

    This comes as concerns over the cost and reliability of mobile money (MoMo) appear to be on the rise. Over the past two weeks, several social media commentators have expressed dissatisfaction with MoMo, highlighting issues such as high transaction fees and frequent network downtimes.

    These concerns were echoed in an interview with Nana Kwabena Barimah, a seller of building materials who shared his experiences and growing frustrations with the mobile money service. Barimah explained that he has increasingly turned to traditional banking services, including the use of Automated Teller Machine (ATM) cards and bank cheques, to manage his transactions.

    “I use a bank that’s close to my shop, and it has served me well. The costs associated with MoMo and occasional network downtimes are becoming too much for us,” he said.

    “It’s not just about the fees; it’s also about the reliability. There have been times when I couldn’t complete transactions due to network issues, which affects my business operations. With my bank, I have more consistent access to my funds and the transaction fees are more predictable,” he added.

  • You have up to June 30 to pay us our locked-up investments – GCFM customers to govt

    You have up to June 30 to pay us our locked-up investments – GCFM customers to govt

    Gold Coast Fund Management customers have stipulated that the government must settle their locked-up investments along with accrued interests by June 30, 2024.

    The group’s convener, Charles Nyame, highlighted in an interview with Citi News that over 900 customers have passed away due to their inability to access funds for medical care.

    Mr Nyame criticized head of the Economic Management Team, Dr. Mahamudu Bawumia, for disregarding their grievances despite repeated efforts by customers to reclaim their investments from the government.

    “Dr. Bawumia, they call you an economic hero, but what kind of hero ignores the cry of his people? We trusted the system and invested our hard-earned money for a secure future but here we are only to be cast aside like dead news. They dangle the public toilet in front of us like some kind of charity,” Charles Nyame lamented.

    He further said, “With all due respect Your Excellency, we are not fools. We see through the empty promises. In this year’s election, our votes would not be a choice, it will be a scream born from the death of despair fuelled by years of neglect. We will not be silenced by apathy any more. June 30th is the deadline, give us back our money, every single cedi with interest. We have over 900 of our people, those are the ones that we have the records of their obituaries, they are dead and gone.”

    Gold Coast Fund Management operated as a registered fund management entity under the regulation of the Securities and Exchange Commission of Ghana.

    Following the government’s financial sector clean-up in 2018, which led to the closure of Gold Coast Fund Management, some customers, previously associated with Blackshield Capital Limited (formerly Gold Coast Management), found their investments locked up.

    These affected customers filed a petition, detailing their grievances, with PricewaterhouseCoopers (PwC) following the completion of the clean-up exercise.

    The Securities and Exchange Commission (SEC) allocated GH¢8 billion for compensating customers of all 47 defunct fund management companies, a budget approved by Parliament.

    The Finance Minister, in public statements, confirmed the completion of the exercise, reporting an expenditure of approximately GH¢25 billion, which encompassed the GH¢8.6 billion earmarked for compensating investors across the 47 defunct companies, including Gold Coast Fund Management.

    However, despite these allocations and assurances, investors who were members of the petitioners’ association and had investments exceeding GH¢50,000.00 have yet to receive their funds since 2018.

  • PwC Ghana Unveils Gender Diversity Banking Report 2024 to elevate women

    PwC Ghana Unveils Gender Diversity Banking Report 2024 to elevate women

    At the launch of PwC Ghana’s Gender Diversity Banking Report, experts urged concerted efforts and effective collaboration among stakeholders to elevate the presence of women in leadership roles within the banking industry.

    Titled “Changing Currency: Examining Trends and Challenges of Female Participation in Ghana’s Banking Sector,” the comprehensive report, compiled from a survey conducted over four months, delves into the experiences and perspectives of women in Ghana’s banking sector.

    The survey specifically targets females in senior management positions and female board members. Through interviews conducted across 13 banks in Ghana, PwC aims to identify the various factors hindering women’s career advancement while also analyzing the factors that propel them in the industry.

    Key findings from the report reveal that many female executives feel that banks prioritize diversity and inclusion as secondary concerns, overlooking their pivotal role in driving progress and fortifying organizational resilience.

    Furthermore, establishing a healthy work-life balance affects women across all levels within bank hierarchies, with particular emphasis on the scarcity of female representation in upper management, where the stakes are high.

    Industry-wide initiatives and partnerships are seen as opportunities to provide enhanced education and collaboration avenues for women in banking.

    Andrea Dwamenah, a Manager at PwC who presented the key findings, stated that interviews were conducted with 26 individuals, mostly women in senior management positions, and Human Resources Executives, to gain a comprehensive understanding of the banks’ stance on diversity, inclusion, and work-life balance, among other factors.

    The report aims to delve deeper into the reasons behind the disparity in the number of men compared to women in top positions, providing insights into the financial services industry.

    Dwamenah highlighted the desire among women in the industry for networking opportunities, mentorship from women in other banks, and knowledge sharing to foster professional growth and development.

    Addressing other obstacles to female representation in senior positions, Dwamenah mentioned women’s self-doubt, skepticism from colleagues, family objections, and societal expectations. She also noted the issue of sexual harassment within the Ghanaian banking sector, emphasizing the importance of addressing and combating it effectively.

    Dwamena expressed her anticipation that the report would spark discussions, even uncomfortable ones, as they are crucial and necessary to address.

    “And I expect it to be a long discourse. I don’t want it to be spoken about once and then goes away,” she said.

    The Changing Currency report highlights the pivotal role women play in advancing Ghana’s banking sector and sheds light on the avenues they must go through to be fully engaged stakeholders in the industry,” Clara Amarteifio-Taylor Partner and Inclusion & Diversity Leader, stated. “It is my hope that through the report, more women feel empowered to push themselves to excel within the sector.”

    “Conducting a study on female participation in Ghana’s banking sector was essential,” Vish Ashiagbor, Country Senior Partner, remarked. “By gaining a deeper understanding of the challenges and opportunities women face in the financial services industry, we enhance our ability to provide tailored solutions that drive positive change.”

    The launch event attracted a distinguished audience of senior executives from across Ghana’s banking sector. It featured insightful panel discussions with esteemed industry leaders, including Dr. Cynthia Forson, Board Member at CalBank; John Awuah, CEO and President of the Ghana Association of Bankers, and Pearl Nkrumah, Executive Director at Access Bank.

  • ECG accused of understating generated funds

    ECG accused of understating generated funds

    An audit conducted by PricewaterhouseCoopers (PwC) on the Electricity Company of Ghana (ECG) has revealed significant discrepancies in its adherence to the Cash Waterfall Mechanism (CWM) established by the Public Utilities Regulatory Commission (PURC).

    The audit, according to The Hearld, found that there were substantial disparities between the reported collections and the actual disbursements by ECG, amounting to approximately GHS3.5 billion over ECG’s CWM allocation from July 2022 to September 2023.

    These findings are contrary to the requirements of the Cash Waterfall Mechanism for month-on-month analysis, as reported by The Herald.

    Additionally, the audit highlighted a net difference of GHS1.9 billion between the total collections declared on the CWM-approved schedules and the inflows consolidated from the bank account statements reviewed.

    This comes as PURC continues to accuse ECG and its management of refusing to comply “with the guidelines of the new CWM as directed by the President, Nana Akufo-Addo, in August 2023.

    “This defeats the principle of fair and equitable allocation of revenue to sector players under Level B as approved by the CWM Standing Committee in line with the revised CWM guidelines. The Commission wishes to state that ECG should co-operate and allow the CWM to function as directed by the President. Additionally, MoF should also take the necessary steps to honour its obligation by paying for the shortfalls.”

    The Cash Waterfall Mechanism Validation Report for November 2023 Payment echoed similar concerns about the handling of cash collection and distribution by ECG management.

    In the audit report, PricewaterhouseCoopers expressed frustrations, citing a lack of cooperation from ECG management during the audit process. The report noted that the state company often refused to provide requested information, particularly documents, and did not respond to queries regarding identified infractions.

    However, the PricewaterhouseCoopers audit said, “From our analysis of the disbursements made from the GCB collections account and the Fidelity Single Collections account, we noted that for all the months, with the exception of February 2023, the disbursements made by ECG to non-CWM beneficiaries were in excess of its allocated amounts per the CWM.”

    The audit findings revealed that ECG disbursed funds to non-CWM beneficiaries in amounts that exceeded its allocated amounts as per the CWM guidelines. This deviation from the intended distribution mechanism outlined by PURC is significant.

    The audit team noted consistent differences between the collections and corresponding allocations made by ECG, compared to what was actually paid out. According to the CWM reports, this discrepancy was primarily due to overpayments/underpayments to beneficiaries, particularly those classified under Tier 2 (Level B).

    Conducted at the request of the Ministry of Finance, the audit recommends the strengthening of the current CWM and enhancing ECG’s compliance with its directives. Proposed measures include process improvements in billing and invoicing, as well as the implementation of technology-enabled platforms to enhance transparency and accountability.

    The audit report stated, “We have identified and described in detail our recommendations for strengthening the current CWM and the inputs from ECG going forward.” It added, “It is imperative that ECG and other stakeholders work collaboratively to implement these recommendations and uphold the integrity of the CWM.”

    This includes: Establishing billing and invoicing process improvements at ECG; Key considerations for the CWM disbursement process; Key considerations for the management of non-tariff revenue by ECG; Medium-term redevelopment of the CWM onto a technology-enabled platform to strengthen the fundamental objectives of the mechanism; Key considerations for cybersecurity and data protection measures at ECG (including implementation of a disaster recovery plan or framework, integration of cyber defence mechanisms and processes at ECG, and considerations for managing third-party solutions and collaborations).

    It suggested engaging with the Ministry of Energy, PURC, and other relevant stakeholders to establish the critical process of retrieving the required data/information to complete our tasks. This will also establish the foundation for the relevant processes and information requirements going forward for the quarterly reviews.

    “We also look forward to discussing our recommendations as PURC, ESRP, and the other stakeholders plan to work with ECG to implement them to help restore confidence and promote a transparent and strengthened CWM.”

    “The total collections per the CWM were lower than the total collections per the two bank statements. We have raised this with ECG and requested explanations and supporting evidence for these disparities. As of the date of this report, ECG management has yet to revert with these explanations and supporting evidence.”

    “Disbursement to CWM beneficiaries from other ECG operational accounts post-MoF directive of June 21, 2023, effective July 1, 2023. The Ministry of Finance (MoF) issued a directive on June 21, 2023, effective July 1, 2023, that ECG should operate a single account from which all collections and payments will be made. In this regard, ECG designated Fidelity Bank Account Number 1070006628289 as the single collections account.

    “From our validation procedures performed, we noted that some payments totaling GHS 684 million to CWM beneficiaries for the period from July 2023 to September 2023 were made from other ECG operational accounts, escrow accounts, and margin accounts. Payments through these other accounts were not in line with the MoF directive issued.

    “We have raised this with ECG and requested the bank statements for these operational accounts, escrow accounts, and margin accounts to validate these payments to the CWM beneficiaries. We have yet to receive them.

    As part of achieving financial sustainability in Ghana’s energy utilities and value chain, the Government of Ghana (GoG) initiated the Energy Sector Recovery Program (ESRP) in May 2019. The ESRP is a comprehensive recovery program that sets out a roadmap of policies and actions required for financial recovery in the energy sector.

    In April 2020, the Electricity Sector Revenue Protection (ESRP) implemented the Cash Waterfall Mechanism (CWM) to ensure transparent, fair, and timely payment of all revenues billed and collected by the Electricity Company of Ghana (ECG) on behalf of the entire electricity generation value chain.

    The CWM, along with the Natural Gas Clearinghouse (NGC) mechanisms, was established to promote fairness and transparency in the disbursement of energy revenues and the equitable allocation of tariff revenue collected by ECG to all parties in the energy value chain.

    This validation exercise aims to verify electricity sales in terms of kilowatt-hours (kWh) and the amount billed and collected by ECG over a specified period. It seeks to confirm whether these sales, billings, and collections align with the requirements and outcomes of the Cash Waterfall Mechanism and its related payments. The assessment will also validate the cycle of power delivered, corresponding billing, and collection, as well as the full transfer of these collected funds from regional collection accounts into the Single Collections account.

    Issues related to ECG’s revenues/collections and the broader energy sector debt have contributed to Ghana’s economic challenges. Therefore, this engagement is crucial in identifying and addressing these challenges to strengthen the power sector value chain.

    Amongst other things, it demanded some detailed revenue assurance and validation, an understanding of the key sources of revenue for ECG, i.e., tariff and non-tariff, and their detailed composition /breakdown; a review of revenue/cash collections from the district level and how this flows to the Head Office from the customers’ billings.

    It also recommended stakeholder engagement and buy-in to align with key stakeholders (IPPs, ECG, PURC, MoEn, GoG) on the reconciliation/validation exercise’s outcome and key actions required.

    The CWM report does not state clearly why this happened, and the PURC notes that the CWM Standing Committee indicated how this defeats the purpose of the CWM.

    “We generally agree with this position, as the guidelines for the CWM are quite clear.

    It will be important to understand, from ECG’s perspective, why there is a continuous lack of cooperation in following the guidelines, which is raising many questions about its use of its collections.”

    It was also identified that ECG used an unprotected Microsoft Excel spreadsheet (Data Integrity and Model Security).

    “We observed that most of the submitted CWM models did not have protected cells to limit users’ ability to interfere with allocation formulas either intentionally or by error.”

    It was advised that PURC will need to reconsider using Microsoft Excel-based spreadsheets for the CWM going forward. The integrity of the data entered into the spreadsheet must be safeguarded to promote transparency and efficient management of the mechanism.

    Key cells must be locked with control access features and enhanced access log features programmed into the spreadsheet to track any attempted changes to the inputs in the model.

    “As suggested in our recommendation, PURC, together with ESRP, should consider a shared platform approach to enhance oversight and accountability from ECG, beneficiaries, and the key stakeholders of Ghana’s value chain to promote confidence in the CWM and its ability to meet its objectives.”

    “Currently, ECG is required to submit the CWM to PURC for review and validation. As mentioned earlier, the allocations and subsequent disbursements often do not completely follow the requirements of the guidelines. It will be useful for PURC to take advantage of technology-enabled solutions to facilitate a system that provides real-time data, independent validation, and a stronger reconciliation system to support a more efficient monitoring and evaluation process in the CWM declaration process.

    On validation of payments to CWM beneficiaries, the report said that “from our review of payments made to CWM beneficiaries, we noted that some payments were made through ECG’s operational accounts, margin accounts, and escrow accounts (ADB, Consolidated Bank, Fidelity Bank, GCB, Access Bank, Zenith Bank, Bank of Africa, First Atlantic Bank, GT Bank, Omni BSIC, Republic Bank, Ecobank, ABSA, Stanbic Bank, Societe Generale, CAL Bank, and Universal Merchant Bank). As of the date of this report, the bank statements for these accounts have not been made available to us to validate these payments. As such, the validation of these payments could not be performed.

    “The list of documents reviewed as part of the validation exercise includes the following: CWM payments (from 2022 to 2023); ECG GCB Bank Statement for account number 1011130011277 for the period from July 2022 to September 2023; Fidelity Bank Statement for account number 1070006628289 for the period from January 2023 to September 2023;

    “Cheque registers for payments to CWM beneficiaries for the period from July 2022 to September 2023; bank transfer advice to various banks for payments to various CWM beneficiaries for the period from July 2022 to September 2023.

    “Based on the data made available to us, we adopted the following approach to the exercise: Cash collections: We obtained the bank statements of the GCB collections account (1011130011277) and the Fidelity single collections account (1070006628289) and analysed all collections received in the account (credit transactions in the bank statement) on a monthly basis for the period from July 2022 to September 2023.

    “We then compared the total monthly collections analysed from the bank statements to the amounts reported in the CWM, highlighting the differences noted for each month.

    “We obtained the bank statements of the GCB collections account (1011130011277) and Fidelity single collections account (1070006628289) and analysed all disbursements in the account (debit transactions in the bank statement) on a monthly basis for the period from July 2022 to September 2023. We then identified all disbursements on a month-by-month basis made to CWM beneficiaries by obtaining and analysing the cheque register and bank transfer advice from ECG. For those payments made through the Fidelity and GCB accounts, we agreed these amounts to the bank statements.

    “We then excluded the total CWM payments from the total disbursements to ascertain the non-CWM disbursements made by ECG and compared these amounts to ECG’s CWM allocation. Differences between Total Collections declared on CWM and the total collections consolidated from the bank statements of the GCB main account and the Fidelity Single Collections account. On a monthly basis, ECG is required to report their total collections for the month for input into the CWM, which would then be distributed amongst the CWM beneficiaries.

    “To assess the amounts reported by ECG, we obtained and analysed all collections received in the GCB collections account (account number 1011130011277) for the period from July 2022 to September 2023 and the Fidelity Bank Single Collections Account (account number 1070006628289) for the period from January 2023 to September 2023).

    “From our analysis performed on the bank statements received, we noted a net difference of GHS1.9 billion between the total collections declared on the CWM approved schedules and the inflows consolidated from the bank account statements shared.

  • Anomalies detected in electricity revenue disbursement system – PwC

    Anomalies detected in electricity revenue disbursement system – PwC

    A recent audit conducted by PricewaterhouseCoopers (PwC) on the Cash Waterfall Mechanism (CWM), a system devised for distributing electricity revenue payments, has revealed discrepancies between reported collections and actual disbursements.

    The CWM was established to ensure transparency and timeliness in payments across the electricity value chain.

    However, the audit findings indicate consistent differences between the declared collections and the corresponding allocations made by the Electricity Company of Ghana (ECG) when compared to the actual payments.

    These inconsistencies undermine the core objective of the CWM, which is to ensure predictability and fairness in payment processes.

    Additionally, the audit uncovered instances where payments were made from accounts outside the designated single collections account, contrary to a directive issued by the Ministry of Finance.

    Furthermore, disbursements to non-CWM beneficiaries exceeded the allocated amount designated for ECG.

    To enhance the effectiveness of the CWM, the auditors recommend improvements in billing, invoicing, and disbursement procedures, as well as better management of non-tariff revenue by ECG.

    They also suggest transitioning the CWM to a technology-driven platform and implementing robust cybersecurity measures.

    Moving forward, steps will be taken to retrieve missing data and engage stakeholders in discussions regarding the recommendations, with the ultimate goal of establishing a more transparent and efficient CWM system.

  • ECG allegedly withholds data from PWC tasked with auditing its finances – Document

    ECG allegedly withholds data from PWC tasked with auditing its finances – Document

    The vice president of IMANI-Africa, Bright Simons, has provided documents that indicate that the Electricity Company of Ghana withheld information from Pricewaterhouse Coopers (PWC) tasked with validating ECG’s revenue accounts.

    “PWC, the auditors tasked by govt of Ghana to check if the under-pressure state electricity utility, ECG, is handling its finances properly is struggling to get data from ECG. Its ledger of monies paid out by ECG in Sept 2023 doesn’t even list the big private power producers,” he wrote in a post on X.

    Per the document shared, PWC admitted that it reached out to the ECG for its customer billing and collections, and the bank statements for the Single Collection Account but failed to receive it.

    The December 8, 2023, press statement released by PWC indicated that they were informed on November 30, 2023, by the General Manager for Financial Planning and Revenue Assurance that the Managing Director of ECG had instructed that they attend a meeting on December 7, 2023, at 10 am at ECG so that the data that they had requested, including the customer billing and collections, and the bank statements for the Single Collection Account for the period of their review, would be provided to them.

    On December 7, 2023, PWC met the Managing Director of ECG as requested, however, “he stated during the meeting that ECG is unable to provide customer billing and collection data to a third party as this will contravene the Data Protection Act, 2012 (Act 843).”

    “As such, we were not provided with any data or information at the meeting and to date we do not have any customer billing and collection data, nor do we have any of ECG’s bank statements for the Single Collection Account for any of the periods to be covered by our review,” the statement added.

    The lack of this data and information, PWC said presented a significant limitation to the conduct of our work and without it they will be unable to perform any meaningful analysis towards the overall objectives of the assignment.

    Accordingly, they requested an urgent meeting with the Chief Director at the Ministry of Energy, Mrs Asamoah, at her earliest convenience to discuss the next steps for the engagement.

  • SMEs’ capital infusion gets a significant lift

    SMEs’ capital infusion gets a significant lift

    In a groundbreaking collaboration, the three leading Professional Service firms of the ‘Big Four,’ namely KPMG, PwC, and Deloitte, have officially launched a campaign aimed at elevating advisory and tax services to bolster capital raising efforts for Small and Medium Enterprises (SMEs) in Ghana.

    Supported by the Ghana Venture Capital and Private Equity Association (GVCA) and the Ghana Investment Support Programme (GhiSP), powered by British International Investment, this campaign signifies a transformative shift in the landscape of business advisory and tax services. It underscores the commitment of these industry giants to contribute significantly to the growth of the private equity ecosystem and improve access to finance for SMEs.

    As part of the campaign, KPMG, PwC, and Deloitte have collectively pledged to enhance accessibility to their services for SMEs seeking to raise capital, including all GVCA members, Fund Managers, and their portfolio companies. This initiative is poised to have a profound impact by empowering businesses with quality advisory and tax services, enhancing their investment readiness.

    The GVCA has consistently championed the interests of its members and Ghana’s dynamic SME sector. This latest development solidifies their dedication to providing beneficiaries with the tools necessary for success in an increasingly competitive and globalized business environment.

    In a joint statement, PwC, KPMG, and Deloitte expressed their satisfaction in joining GVCA in this campaign, stating, “We are pleased to join GVCA in this campaign to promote improved access to quality advisory and tax services. By working with the Association and with GhISP, we aim to enhance the investor readiness of SMEs, serving as a catalyst to assist them in attracting capital for scaling.”

    Hannah Acquah, CEO of GVCA, highlighted the significance of this collaboration for SMEs, stating, “Private Equity and Venture Capital compels SMEs to establish stronger management and governance structures, navigate pervasive risks, and provide sustainable jobs while intentionally pursuing a double bottom line: providing returns for investors and fostering sustainable job creation. Having KPMG, PwC, and Deloitte join us means our members can navigate complex business challenges and reach new heights of success.”

    David Tetteh, speaking on behalf of GhISP, expressed excitement about supporting this trailblazing campaign. He emphasized that the commitment of the top professional service firms to expand the accessibility of their services to SMEs will significantly impact supporting the growth and expansion of this crucial segment of the Ghanaian economy while creating investment opportunities for capital providers.

    For KPMG, PwC, and Deloitte, joining the GVCA is not just a collaboration; it is a testament to their shared vision of advancing the interests of the Ghanaian business community. It embodies their commitment to fostering innovation, providing valuable support, and ultimately driving the growth of SMEs in Ghana.

  • Exempt education, health sectors from public job freeze – PwC

    Auditing firm, PwC, is appealing to government to spare the education and health sectors from the freeze on the public sector employment.

    Though it supports government’s decision to freeze employment in the public sector, it said in its 2023 Budget review that key sectors such as education and health should be given key consideration and should not be hampered by the freeze on public sector employment.

    The 2023 Budget highlighted some key interventions with respect to payroll and human resource management. These included, among others, the freeze on all public sector employment, expunging ghost names from payroll through periodic audits, linking of the Ghana card to the payroll, placing moratorium on granting of extension of employment after retirement and completing the roll-out of HRMIS and its integration to the payroll and GIFMIS.

    PwC said “as negotiations with the IMF are currently ongoing, this is a critical area of reforms that need to be undertaken to cut down expenditure. However, whilst we agree with the Government on these measures, key sectors such as education and health should be given key consideration and should not be hampered by the freeze on public sector employment”.

    The government also proposed key expenditure measures in the 2023 Budget to support its fiscal consolidation. These include the reduction of the earmarked funds from the current 25% of tax revenue to 17.5% of tax revenue, continued action of the 30% reduction of salaries of the President, Vice President, Ministers, Deputy Ministers and other political office holders, negotiate public sector wages, manage public sector hiring within current budgetary constraints, reduce fuel allocations to political appointees and heads of Ministries, Departments and Agencies; Metropolitan, Municipal, Department and State Owned Enterprises by 50%, among others.

    It said there is the need to downsize government machinery in addition to the implementation of the measures outlined to achieve a more sustainable outcome.

    “While these measures may lead to expenditure reduction, we believe that there is the need to downsize Government machinery in addition to the implementation of the measures outlined, to achieve a more sustainable outcome”.

    Source: Myjoyonline

  • About 60% of banks have approved ESG plans – PwC

    More than half of banks in the country have approved plans to adopt and integrate Environmental, Social and Governance (ESG) strategies into their business operations, a recently-released study by Price Waterhouse Coopers (PwC) has shown.

    In its 2022 Ghana Banking Survey Report – wherein it surveyed 21 out of the 23 registered universal banks – the advisory notes that 62% of bank executives it surveyed confirmed the existence of such plans, with 86% indicating that the subject is discussed at board level, at least, once every year.

    “Insights from the survey show a clear-cut interest in embracing ESG strategies by banks, both at the board and senior management levels,” PwC’s Country Senior Partner, Vish Ashiagbor, noted in remarks accompanying the report.

    Additionally, 71% of the survey’s respondents believe ESG should be an integral part of their credit decision-making; 63% say the concept is at its nascent stage, and 48% of them describe regulatory leadership and initiative as the main drivers of implementing ESG.

    The top executives pointed to customer satisfaction and employee engagement as the top-two non-financial metrics they are prioritising – ostensibly because these have the most direct consequences on their bottom line.

    PwC attributes the growing ESG focus, in part, to the Sustainable Banking Principles and Sector Guidance Notes introduced as a consequence of sustained collaborative efforts from key industry stakeholders – including the Bank of Ghana (BoG), Environmental Protection Agency (EPA) and Ghana Association of Bankers (GAB).

    “Even though some banks seem to have had some form of ESG strategies in place prior to the release of the principles and sector guidance notes on the subject matter by the regulator, many woke up to the issue only after the regulator’s publication – with only a very few having in place a clear strategy which goes beyond just satisfying the regulator compliance matters required as at now,” Ashiagbor elaborated.

    Despite gains made in awareness and adoption of self-initiated ESG frameworks by the banks, the survey showed that only 48 percent of them have more than 50% of their management team with formal training on the subject. This prompted a call from PwC to accelerate training.

    “There is a need for banks to intensify training on ESG for their staff to advance the ESG agenda and harness its full potential… It may be difficult to achieve more in ESG if key decision-makers in the industry lack adequate knowledge on the subject,” PwC noted.

    This further prompted the advisory firm to advocate the development of a roadmap for implementing sustainable banking practices, with the conviction that “banks will show more commitment and be more accountable to the implementation process”.

    On his part, the chief executive officer of the Ghana Association of Bankers (GAB), John Awuah, said the growing interest in ESG is unsurprising, as banks had even before lessons from the pandemic begun shifting away from a narrow focus on shareholder investment maximisation to a broader scope that incorporates long-term sustainability, healthy financial systems and the transition to a green economy.

    “Banking institutions’ strict adherence to sustainable banking principles in prior and recent years has seen some demonstrable improvements. The adherence is a reflection of society’s desire to engage and transact business with banks characterised by strong ethical standards and values,” he said, noting that charting this course will see banks lower their costs, have stronger governance structures, attract environmentally-conscious capital and contribute to sustenance of the world.

    He is confident that the medium-term will see growth in the subject, as the approach adopted by local banks is not only consistent with global best practices but also fits into the country’s development needs.

    Tax lead at PwC, Ayesha Bedwei Ibe, also believes that in addition to policies which incentivise sustainable finance and provide punitive measures for harmful practices, the pressure from investors will see more banks embrace sustainability and enhance their tax transparency.

    These developments come as concerns over sustainability of the planet have come into sharper focus, with a growing interest in ESG. Sources such as the ESG and Thematic Investing unit for Europe, the Middle East and Africa (EMEA) at Bloomberg Intelligence is forecasting that ESG assets will grow 10x between now and 2025, from US$530 million to more than US$53 billion.