Five hundred and forty (540) employees will lose their jobs in 41 days from today if government decides not to renew the contract of Destination Inspection Companies (DICs).
On August 31, 2015, the five-year contracts of the five companies; namely, Gateway Services Limited, Ghana Link, BIVAC, Webb Fontaine, and Inspection & Control Services will come to an end.
Already, Tax Policy Advisor to the Ministry of Finance, Dr Edward Larbi-Siaw has indicated that government cannot promise to automatically absorb staff of DICs into Customs.
He explained that workers of DICs have the right to apply anytime Customs advertise vacancies.
Even though the Customs Division of the Ghana Revenue Authority (GRA) said it is ready to discharge the duties of DICs, investigation by The Finder indicates otherwise.
While Customs stated that over 70% of people working with DICs are customs officers on secondment, it turned out that the 540 full-time employees of DICs are not customs officers.
Currently, the breakdown of customs officers seconded to DICs is Gateway Services Limited, four; Ghana Link, one; BIVAC, two; Webb Fontaine, two; and Inspection & Control Services, two.
It also turned out that only 11 customs officers resigned to join DICs. The breakdown is Ghana Link, eight; Inspection & Control Services, two; and Gateway Services Limited, one.
Government has decided to implement a National Single Window to be operated by West Blue Ghana Limited from September 1, 2015.
However, clearing agents and the DICs have kicked against this policy, insisting that it is the same kind of window Ghana Community Network (GCNET) is currently operating and, therefore, wanted the current system to be maintained.
The Finder’s investigations indicate that terminating the contract of DICs would have far-reaching repercussions for the industry.
It has emerged that the contract of GCNET will only expire in 2018, raising questions about what role West Blue Ghana Ltd.
Experts say West Blue Ghana Limited cannot run a parallel system alongside that of GCNET.
Additionally, industry players explained that West Blue Limited has not piloted its system neither did it organise any training for stakeholders to enable smooth takeover.
A committee charged to design the transition process from DICs to Customs, headed by the Chief of Staff, met only once.
Even before the committee will commence work, the President, through a letter written by his Chief of Staff, Julius Debrah, dated May 12, 2015, directed the Ministry of Finance to transfer the duties of all five DICs to an IT consulting firm with international claims of specialising in Trade Facilitation, West Blue Ghana Ltd.
It is feared that even the timing of the takeover could be problematic as imports into the country begin rising from August.
The total value of the contracts that the five Destination Inspection Companies (DICs) have with the Government of Ghana is worth some $60 million annually or up to 1% of the value of inspected and classified imported goods at the nation’s ports.
This is justified by the fact that between 2010 and 2014 alone, the combined work of the DICs ended up recovering for government some $2.8 billion in under-declared duties for imported goods.
<<Print>>