Friday, 27 December 2013

Why All State-Owned Entities Must Insure With SIC And Bank With GCB

A major source of corruption amongst the upper echelons of the public sector,  has apparently been lobbyists working for financial services sector entities, such as banks and insurance companies.

It is therefore not surprising that the industry-wide  body, the Ghana Insurers Association, is up in arms over the edict by President Mahama that ministries, departments and agencies of the government of Ghana, insure only with wholly-owned or partially state-owned insurance companies, such as SIC.

According to bush-telegraph sources,  senior public servants able to make it possible for state institutions and organisations to open accounts with private-sector  banks, and insure with privately-owned insurance companies, get the public-private-partnership-equivalent of a golden handshake, for doing so.

President Mahama is closing a significant loophole that has made it possible for taxpayers' money to end up in  the already-deep-pockets of crooked senior public servants, for years now,  in taking this bold step.

He must resist any pressure that those greedy banks and insurance companies that have fed fat on taxpayers for so many years now, will put on his regime, to rescind his decision. The banks and insurance companies that the state has a stake in, pay dividends to the government - so why should they not be given the opportunity to improve their bottom-line by being given business by public-sector entities, I ask?

Any measure that lessens the propensity of the state to impose taxes on individuals and businesses is to be welcomed. Dividends from entities such as SIC and GCB, in which the state has a stake, lessen the burden on taxpayers - which is why we must all  support the decision taken by the President that public-sector establishments must insure with SIC (and hopefully bank only with GCB too). At the very least it will lessen high-level corruption amongst senior public servants  - a positive development that ought to  be welcomed by every patriotic Ghanaian.















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