Accra, August 7th, 2020 – Ghana’s mobile industry comprising of leading global network operators namely AirtelTigo, MTN and Vodafone are good corporate citizens, showcasing an exemplary record of tax compliance as well as delivering on all their tax obligations.
The Ghana Chamber of Telecommunications wishes to respond to ongoing media discussions relating to answers provided to a question in Parliament by the Hon. Minister of Communications, on the Common Platform (CP).
The content of the answer given is almost similar to the earlier press conference held on the 14th of November 2019. The Minister stated inter alia that “ The introduction of the CP has uncovered that, prior to the introduction of the CP, GHS 470 million in taxes was lost from potential under declarations between 2015 to the first quarter of 2017. An estimated amount of GHS 300 million in taxes was saved between Q1 of 2017 to date as a result of the announcement of the implementation of the CP on March 8th, 2017 and its actual implementation date”.
We wish to once again, state that these claims although potential and estimated have not been brought to the attention of our members and on the contrary, the ongoing working relationship between the Ghana Revenue Authority (GRA), National Communications Authority (NCA) and/or their technical partner KelniGVG regarding the Common Platform does not support these allegations.
The mobile industry is deeply concerned about the continuous recurrence of these claims, and the fact that standard audit principles and practice that characterize our members dealings with regulators continue to be breached. Any revenue assurance best practice will expect that such findings, if indeed were the case will be shared with our members for their response and reconciliation before onward engagement with external parties and the media.
We have requested since the 19th of November 2019, that this very report detailing these alleged tax misconducts as being espoused by the Ministry be brought to our urgent attention, but this request has not been met till date and our engagements with the Ministry and Regulators over the last nine months has never contained such an agenda for discussion.
Financial reporting procedures within the telecoms industry are rigorous, and these include regular audits by the GRA as well as periodic ones by the NCA. These are in addition to assessments performed by blue-chip external auditors with world-class reputations as done in other sectors.
The fraud in question, SIMBOXING (bypass fraud) negatively impacts the network operators and the State, both losing $0.13 and $0.06 respectively for every minute of international calls which bypasses the legitimate international gateways which our members have paid for to operate. We have been working prior to the CP and now with the regulator to minimize the incidence if not eliminate them completely.
To this end, we are humbly entreating the Government to engage with our members and all other industry players on serious reputational issues such as these before conclusions are drawn and same circulated with the public. We also will seek audience with Parliament through the Select Committee on Communications in the ensuing days to engage them adequately in addressing these allegations which have serious reputational effects on our businesses both in and out of Ghana.
We reiterate that the effect of no-consultations on serious assertions such as these, is dire to the growth of the mobile industry as it hurts investor confidence and lowers the entire image of the industry before the general public.
Dr. Ing. Kenneth Ashigbey
Chief Executive Officer
Note for Editors
About the Ghana Chamber of Telecommunication
The Ghana Chamber of Telecommunication is the foremost mobile and technology industry association and a private initiative by the mobile network operators in Ghana. We are an advocacy institution established to help direct telecommunications policy, legislation and regulation, and pursue research towards the development of telecommunications.
As the voice of the mobile operators, tower and infrastructure companies in Ghana, we work through direct engagements with government (institutions), civil society, key stakeholders and consumers to shape the mobile ecosystem and maximize the socio-economic benefits of mobile in Ghana. The Chamber was registered in 2010 and inaugurated in 2011.
Fraud Management is an entire business process and unit within the network operators’ outfit. These revenue assurance teams support the business to collect fully what it has earned so that government taxes are equally assured. The teams deploy tools to detect general fraud, SIMBox, Billing Verification and more.
Tax alleged to have been under declared are all estimates or potential values. We are confident when provided these reports and given fair opportunity to clarify them with evidence of actual payments made by our members, we shall satisfy all parties concerned.
Source: Chamber News Desk
