The Importers and Exporters Association of Ghana (IEAG) has warned that the practice is ruining firms and undermining investor trust, accusing politically connected cartels of controlling the auctioning of perishable products at the nation’s ports.
The Association, in a sharply worded statement, attributed the development to Ghana’s ongoing foreign exchange shortages, which it claims have prevented importers from getting dollars in time to clear cargoes.
Goods on the Uncleared Cargo List (UCL) are supposed to have a 60-day grace period prior to going up for auction under current law.
However, according to the IEAG, this window has been abruptly reduced to 21 days, a gap that it alleges is being taken advantage of by politically connected businessmen who buy consignments at discount prices, frequently without following the correct legal or gazetting procedures.
The association claims that it is even more infuriating for traders since the winners of these auctions just pay a service fee of GH₵6,000 to GH₵10,000, while importers lose their goods and are still subject to significant demurrage penalties.
“This fraudulent system not only robs importers of their hard-earned capital but also denies the state valuable revenue at a time when Ghana desperately needs every pesewa,” the Association remarked.
The IEAG is calling for a complete investigation by the Customs Division and security services into what it describes as a “political cabal” making money off of the system, the immediate reinstatement of the 60-day grace period, and a first-time clearing alternative for importers who are having trouble with FX.
Additionally, the Bank of Ghana is being urged to guarantee that commercial banks offer foreign exchange at reasonable prices.
The Association has threatened to launch a large-scale protest if authorities do not respond quickly.
Source: newsthemegh.com