Ghana Community Network Services Limited (GCNet) has presented a dividend of GH¢2.4 million to Government.
The payment is in respect to the final dividend payment due to Government in 2011 through the Government’s equity stake in GCNet, which is held by the Ghana Revenue Authority (GRA). This dividend payment brings the total dividend payment made to Government through the GRA shareholding to nearly GH¢6million over the past eight years.
The dividend was presented by the Executive Chairman of GCNet, Dr. Nortey Omaboe, to the Minister of Lands and Forestry, Mike Hammah, who received it on behalf of the Minister of Finance and Economic Planning.
Dr. Nortey Omaboe noted at the presentation that besides the direct dividend payment, Government receives other indirect dividends through dividend payments made by GCNet to the Ghana Shippers’ Authority (GSA) and the Ghana Commercial Bank (GCB).
Dr. Omaboe also observed that although the 2011 final dividend payment was relatively lower in comparison with those made in previous years, this stemmed from the fact that GCNet has over the past year invested nearly US$20million in the automation of the Domestic Tax Revenue Division (DTRD) of the GRA and the Registrar-General’s Department.
As this investment has been funded largely from GCNet’s internally generated resources, it had affected the quantum of distributable income available for payment to its Shareholders as dividend.
He also stated that with the completion of the new GRA automation project by the end of 2012 and the deployment of the new system, not only will it enable GCNet make a greater corporate contribution to the mobilisation of non-tax revenue as dividend payments, but it will also greatly enhance the efficiency of domestic tax collection by the GRA and the receipts therefrom.
In comments after receipt of the dividend, Hon. Mike Hammah expressed regret that a number of state-owned enterprises and those where Government hold a shareholding often perform below expectation.
He therefore congratulated GCNet for being alive to its responsibilities and making regular dividend payments to Government.
He however observed that in view of the versatile system that GCNet has deployed, there is need to leverage off the facilities at its disposal for it to ensure that other areas in the economy requiring e-governance services to improve public sector service delivery will also be considered by GCNet.
He also indicated that revenue is critical for the good performance of the economy and achievement of various macro-economic targets.
He thus urged GCNet and the GRA to redouble their efforts in ensuring that the revenue targets for the year are realised.
Present at the presentation ceremony were the Chief Director of the Ministry of Finance and Economic Planning, the Commissioner-General of the GRA and executives of GCNet.
