The Association of Ghana Industries (AGI) has dismissed the Finance Minister’s accusation that the group is partly blamable for the cedi depreciation.
The Minister of Finance, Mohammed Amin Adam Anta in an engagement with the AGI indicated that some members of the association are engaged in hoarding dollars which leads to shortages resulting in the depreciation of the cedi.
The Minister who cited a specific case to buttress his point further indicated that, “the day we start pursuing them [Humphrey] is going to organize a press conference and say you are harassing my members. I am appealing to you also. Talk to your members to support the efforts of the government.”
But the Chief Executive Officer of AGI, Seth Twum Akwaboah in reaction to the claims of the Minister insisted that it does not even make business sense for their members to lock up their capital in dollars.
Seth Twum Akwaboah explains that members of the AGI depend on their monies for running their respective businesses hence risk collapse should they hoard their capital in dollars.
“No business person will lock up his funds in foreign currency simply because he just wants to save money in foreign currency. You need the money to run. It runs like water or blood. It flows in, up and down. When you have sold your goods and have gotten sales, the next time you are using it to pay your workers, bills and you are buying the next raw materials. The savings you make are a small percentage that you can save for cushioning,” the CEO explained.
Commenting on the specific case cited by the Minister, Seth Twum Akwaboah admitted that the incident is wrong should it be proven to be indeed the case. He added that the case has not come to their attention but the association will take action against the member should they be furnished with the full facts.
He explained that, “The classic example he cited can be looked at separately because in that case, it is something untoward and we are not aware of it. He didn’t mention the company’s name. I’m not in any way doubting it but if anybody does anything that is contrary to the law, regardless of where he is coming from I don’t think the Association of Ghana Industries will support the move because otherwise you are sabotaging the whole economy. We will never support it. If this comes to our notice, we will take the necessary action against the member.”
He however insisted that is a peculiar case and cannot be generalized as a practice of the Association of Ghana Industries.
“That is an outlier which as of now cannot be fully supported. So I wouldn’t say that is what our members are doing,” Seth Twum Akwaboah insisted.
