02 CONTENT DAILY HERITAGE WEDNESDAY, FEBRUARY 7, 2018 DAILY QUOTE What would you do if you weren't afraid --Spencer Johnson ANNIVERSARIES 06 March, Independence Day 30 March, Good Friday 02 April, Easter Monday Published by: EIB Network / Heritage Communications Ltd. Managing Editor: William Asiedu: 0208156974 Editor: Kofi Enchill: 0265653335 ISSN: 0855-52307 VOL 7 Location: Meridian House (Starr FM) Ring Road. Box AD 676, Adabraka, Accra,Ghana. Telephone: +233-0302- 236051, 020-8156974 026-5653335 Adverts/Mktg: Paul Ampong-Mensah 024-4360782 Fax: +233-0302-237156 Email: email@example.com firstname.lastname@example.org www.dailyheritage.com.gh WORLD SA postpones Zuma State of Nation speech POLITICS Minority can’t hold Parliament to ransom – Mensah- Bonsu BUSINESS PG.04 Ghana Beyond Aid achieved yet? SPORTS PG.11 Elite Bodybuilding Open set for March PG.10 PG.15 Reckless driving is weapon of mass destruction BY KOJO ANSAH NATIONAL ROAD Safety Ambassador, Mr Gabby Adu Gyamfi is calling for strict enforcement of the road traffic laws to ensure that reckless drivers face the required punishment. He said reckless driving is a weapon of mass destruction due to its tendency of killing many law abiding motorists. According to him, reckless driving is used by even terrorists to kill many people on the road hence a critical attention must be paid to the canker by the law enforcement agencies. Mr Gyamfi said this when he visited the scene of the fatal accident which killed 15 people at Anyinam in the Eastern Region. Grieved by the horrifying accident, Mr Gyamfi also called for construction of speed ramps at accident prone areas along the Accra to Kumasi Highway as a mitigation measure. He also suggested tougher punishment for drivers who drive recklessly. The death toll of the fatal accident that occurred last Thursday night at Anyinam in the Eastern Region rose from 14 to 15. One of the injured recently died at the hospital. Reports suggested that the death toll may rise considering the fact that some of • Says Road Safety Ambassador •Gabby Adu Gyamfi, Road Safety Ambassador and Supt. Eric Asiedu, the Anyinam Police Commander the critically injured are still battling for their lives. Meanwhile, one person was knocked down to death at the accident area on Friday. Preliminary investigations by the Eastern Regional Police Command into the fatal accident that claimed 15 lives on the spot revealed that the sprinter driver was recklessly overtaking. Confirming the accident to DAILY HERITAGE, the Public Relations Officer (PRO) of the Eastern Regional Police Command, ASP Ebenezer Tetteh said the accident which occurred at about 11:30pm on Thursday at a spot opposite WAPCO Filling Station near Anyinam, involved three vehicles - a Mercedes Benz Sprinter Bus, a Diesel Cargo Truck and a Mercedes Benz. He said the Mercedes Benz with registration number GN 3699-14 loaded with about 25 pieces of 2/4 woods and 25 passengers from Nkawkaw towards Accra overtook several ongoing vehicles and in the process collided head on with the Diesel Truck with registration number WR 5783-C also fully loaded from the opposite direction. The driver of the Cargo lost control of the steering wheel and also collided with another Mercedes Benz with registration number GT 546-U loaded with passengers and foodstuff. According to the PRO, the 14 people who died on the spot included five children and nine adults, all occupants of the Sprinter Bus. Other occupants of the Cargo Truck and the Sprinter Bus sustained serious injuries hence were rushed to the Engresi Government and Kibi Government hospitals for treatment. The bodies have been sent to the Holy Family Hospital at Nkawkaw. The Eastern Region has recorded many fatal accidents along the Accra to Kumasi Highway this year of which about 20 lives were lost in January. Statistics from the Motor Transport and Traffic Department in the region indicate that a total of 1,233 accident cases were recorded in 2017 in the Eastern Region with 1,732 vehicles involved out of which 374 people perished and 2,254 were injured during the year.
WWW.DAILYHERITAGE.COM.GH DAILY HERITAGE WEDNESDAY, FEBRUARY 7, 2018 Whenever you find yourself on the side of the majority, it is time to pause and reflect. —Mark Twain IFS commends govt NEWS DESK REPORT THE INSTITUTE for Fiscal Studies (IFS), a renowned economic think-tank, has welcomed plans by the government to hedge the country’s oil imports. The Institute has since 2015 urged the government to consider hedging Ghana’s oil imports because it is the best strategy to mitigate the adverse impact of oil price volatility. Addressing a press conference at the Institute’s head office in Accra yesterday, the Executive Director of the IFS, Prof. Newman Kusi noted that the IFS was “pleased to note recent reports in the media about plans by government to hedge the country’s oil imports. The IFS welcomes this development as a step in the right direction, given that hedging provides an insurance to mitigate the adverse impact of oil price volatility.” Ghana’s oil capacity He explained that “currently, Ghana produces nearly 200,000 barrels of oil per day. Ghana’s share has risen to nearly 20% of this total output, which it sells on the international market. Ghana is however a net oil importer, except last year when oil exports exceeded imports. “Without an oil hedging programme the country stands to lose foreign exchange earnings from exports when oil price drops on the world market. Likewise when oil price increases, the country suffers through increases in its oil import bill. Both scenarios are undesirable and can be mitigated by an effective hedging programme to ensure stability in fiscal management.” He said hedging is not entirely new to Ghana’s fiscal management and is an insurance instrument used to buy protection against risks and not a gamble for futuristic • Over plans to hedge oil imports gain. •Prof. Newman K. Kusi, Executive Director, IFS Success story It would be recalled that in March 2010, after the country had built capacity in commodity risk management in collaboration with one of the world’s reputable banks, Goldman Sachs, the government implemented a Commodity Risk Management Policy to help protect the economy from the volatilities in commodity prices. In line with the policy, a National Risk Management Committee was established and charged with the responsibility of hedging Ghana’s oil imports and exports through “call” and “put” options, respectively. Initially, the government hedged at a strike price of US$ 82.50 per barrel on monthly imports of 1,000,000 barrels. In July 2011, this was increased to 2,000,000 barrels of imports per month at an average strike price of US$ 115.00 per barrel. The programme proved immensely successful, and by end-2011, the scope of the hedging programme had been expanded to provide a 100% cover for Ghana’s oil imports. The commencement of oil production from the Jubilee Field created a new price risk exposure for the country. To protect the oil revenue to enable it support fiscal stability, the scope of the hedging programme was expanded to include revenues from oil exports through the “put” option. Up to the end of 2011 fiscal year, 100% of the anticipated receipts from crude oil exports were also fully hedged. The government was also in the process of implementing Interest Rate Hedging programme which was to begin in 2012 to help stabilise interest costs arising from the external credit it had secured, including the China Development Bank US$ 3.0 billion loan. No hedging programme As of today, Ghana has no hedging programme in place. The country’s hedging programme was abandoned in 2013, exposing its foreign exchange resources to the vagaries of an unpredictable and often harsh international commodities market. Meanwhile, Ghana’s Jubilee Partners – Kosmos, Anadarko and Tullow Oil – have insulated themselves from oil price volatilities through active hedging. So, while Ghana’s crude oil sold for an average price of US$ 46.13 per barrel on the world market in 2016, Kosmos and Tullow raked in US$ 73.60 and US$ 61.70 per barrel, respectively. Way forward Due to the above statistical analysis, the IFS is of the conviction that “Ghana’s previous experience with hedging points to one key lesson: with a well-designed hedging programme, it is possible to protect the country against volatilities in commodity prices through the ‘call’ and ‘put’ options. “Since 2015, the IFS has strongly advocated the need for Ghana to re-introduce the petroleum hedging programme to cover both imports and exports to save the country from losing millions of foreign exchange earnings and also provide stability to the national budget. “The IFS therefore commends the government for its plans in this direction. We urge government to consider a comprehensive hedging programme that covers oil imports and exports, as well as interest rates on public debt.” Starr Woman team visits Parliament, Ghana Fed. for Disability STARR WOMAN Dream Edition project seeks to empower women entrepreneurs with disability to defy the odds and become successful at running business. The aim is to promote awareness of the systemic issues facing women entrepreneurs and to call on duty bearers to roll out policies to suit them. This year, the project will focus on Savelugu and Yendi Municipalities. For this reason the Starr Woman Dream Edition team led by Project Lead, Mrs Eyram Bashan paid a courtesy call on the Member of Parliament (MP) for Savelugu to brief him on the project and officially invite him to our stakeholders' forum to be held in Savelugu on February 15, 2018. The team also presented a copy of the survey report conducted in the two districts, which puts spotlight on the challenges of persons with disability in the Northern Region. The MP for Savelugu, Muhammed Abdul Samed-Gunu expressed excitement over the initiative, accepted the survey report and pledged his total support for the project. A similar visit was paid to the Ghana Federation of Disability organisation to officially seek for their support and involvement in the project. The project coordinator of the organisation, Akua Beatrice congratulated the team on taking up such initiative. She expressed great worry over the situation of Persons with Disability. “It is time we move out of the charitable approach and support them to become independent,” she stated. She further pledged their support towards the project in order to make it a success since the organisation which is the umbrella body for Persons with Disability will benefit a lot from the project. The Group Managing News Editor of EIB Network and Project lead, Mrs Eyram Bashan expressed gratitude over their unflinching support. •Mrs Eyram Bashan, Group Managing News Editor of EIB Network giving the survey document to Muhammed Abdul Samed-Gunu, MP for Savelugu