Gcnet Presents Dividend To Government

GcNetGhana Community Network Services Limited (GCNet), has presented an interim dividend of GH¢4 million to government for its 2013 operations.

The payment was in respect of the government’s equity stake in GCNet, which is held by the Ghana Revenue Authority (GRA). This brings the total dividend payment made to the government through the GRA shareholding in GCNet to GH¢67 million over the past decade.

Besides the GRA interim dividend, the government has also received indirect dividend through interim dividend payments made to the Ghana Shippers’ Authority (GH¢2 million) and Ghana Commercial Bank (GH¢ 1 million) from GCNet’s 2013 operations.

The dividend was presented by the Deputy Managing Director of GCNet, Emmanuel Darko, to the Deputy Minister of Finance and Economic Planning, Cassiel Ato Forson.

Making the presentation, Mr. Darko observed that the 2013 interim dividend payment was relatively lower in comparison with dividend payments made in previous years and hoped that the declaration of a final dividend would augment the interim dividend paid so far.

Mr. Darko noted that GCNet had over the past two years invested nearly US$25 million in the automation of the Domestic Tax Revenue Division (DTRD) of the GRA and the Registrar-General’s Department.

“As this investment had been funded largely from GCNet internally generated funds, this has affected the quantum of distributable income available for payment to its shareholders as dividend,” he said.

Mr. Darko also stated that with the completion of the development of the new GRA automation project and its operational acceptance at the end of 2013, and the expected full roll-out of the system in 2014, especially to the Large Tax Offices (LTOs), this would greatly enhance the efficiency of domestic tax collection by the GRA and the receipts thereof.

He pledged GCNet’s support towards the government revenue mobilisation efforts, in pursuit of which GCNet would also deploy enhanced modules to the Ghana Customs Management System in the course of the year.

Commenting, Mr. Forson expressed regret that some state-owned enterprises and public-private partnerships often performed below expectation and therefore congratulated GCNet for being alive to its responsibilities and making regular dividend payments to the government.

Mr. Forson indicated that a revenue target of GH¢ 57 million had been set in 2014 as non-tax dividend contribution from state-owned enterprises and the public private partnership companies to the budget.

“In the light of this, a close monitoring would be made of their operations during the year,” he said.

Mr. Forson also took note of the planned new deployments by GCNet and urged GCNet to do so expeditiously as revenue was critical for the good performance of the economy and the achievement of the various macro-economic targets.

He therefore urged GCNet and GRA to collaborate effectively for the realisation of the 2014 revenue targets.

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