Ghanaian Authorities Would Rather Close Down Struggling Businesses Than Support Them To Grow
Founder of the Defunct Gold Coast Securities, Dr. Papa Kwesi Ndoum has blamed the failure of African businesses on what he describes as the politically motivated policies and practices of their governments. According to him such practices stunt the growth of segments of the private sector they consider to be sympathizers of the opposition, a reason many local firms are unable to grow and expand.
Speaking during his regular podcast, Dr. Ndoum said he wondered why Ghanaian authorities like the Ghana Revenue Authority and the Social Security and National Insurance Trust (SSNIT) will prefer to close struggling businesses instead of helping them to overcome their challenges.
“For example, in Ghana, we have a number of regulators who know that because of covid and all manner of negative global activities there are shortages of raw materials and inability to ship products from here to there”. Said Dr. Ndoum.
According to him although the authorities know about the problems, they show no empathy. “Indeed, many companies are facing severe cash flow difficulties, and yet they would want to go and lock doors, take people to court, disrupt their activities, and demand to be paid huge sums of money now if not they close the company, collapse it, let it go away”. Dr. Ndoum noted.
The former flagbearer of the CPP said the regulators find it easier to close struggling businesses than help them in finding solutions that will enable the companies to exist while they take time to deal with all these global problems that have surfaced
He wondered why these same governments turn around to blame their inadequacies on covid and other global challenges
He further challenged the assertion of related party businesses and said there is nothing wrong with operating a conglomerate. He described as strange the new lexicon “related party transactions” that was introduced to collapse businesses and how it was made to look illegal. According to him, related parties’ businesses tend to help businesses grow and develop.