Ghana Post, the company primarily responsible for postal service in the country, has pleaded with President Akufo-Addo to help secure more government business as they are capable of delivering quality service.
The Managing Director of Ghana Post, Bice Osei Kuffuor, popularly known as Obour as a musician, made the appeal on Thursday, May 19, 2022, when the Board of the company paid a courtesy call on President Akufo-Addo at Jubilee House.
He told the President that they had studied the posts of other countries, including Kenya, and realised because of transformation and digitisation, organisations were also transforming, adding that Ghana Post itself was also changing, but needed a core base to propel its growth.
He opined that in some posts across the globe, the base had been achieved through getting businesses from governments.
Narrowing it to Ghana Post, he opined that the government, through its agencies, already does courier services, and that it was their major plea that a certain government policy direction could come to their aid for the agencies to use Ghana Post instead.
“Your Excellency, if there is a certain government drive, or certain policy direction to support Ghana Post with government business…but unfortunately for us, Ghana Post is not getting these businesses. If we look at our books, the portion of government business that Ghana Post receives in our monthly revenue is 3%,” he stated, citing that of Kenya received 45% and Japan 80%.
He argued that these government agencies, both local and the missions abroad, rely on foreign courier companies, which Ghana Post is able to undertake.
Payment of Dividends
The MD told President Akufo-Addo that the management was poised to make the company a dividend paying business to the government.
This will be after over three decades of none payment of dividends by Ghana Post to the government, but one of the key visions of the new board, the MD indicated was to change the narrative.
Though they have resolved to do that, the MD asked for the government’s support.“Your Excellency we have two main requests which we believe strongly if you’re able to consider will make Ghana Post paying dividends a reality and not a saying,” Obour stated.
The MD said if more government business were directed to the Ghana Post, the company would be able to clear its debt. He informed the President that Ghana Post has legacy debt in the region of GH¢40 million.
He said in the old administration there were debts to the Ghana Revenue Authority (GRA), Social Security and National Insurance Trust (SSNIT), and end of service benefits to former staff from 2016 to 2021.
In his response, President Akufo-Addo said there was a particular concern about the possibilities that Ghana Post represents. So, he was not surprised about the changes that had taken place at the company, and also the trajectory of the thinking of the MD and the board.
According to the President, it was feasible for government businesses to be directed to Ghana Post, and said the sector minister, who represents the government,which is the 100% shareholder, should bring the matter up for consideration.
“I wouldn’t like to go further on that…it makes sense to me that instead of government paying foreign private sector operators to do this necessary job, it should pay a public sector agency to do the same business if the capacity is there,” he remarked.
President Akufo-Addo asserted that one issue people have with doing business with the public agency is capacity, if not competence.
In view of that, if the public agency proves competent, he could not agree why business should go to foreign agencies which does the same business like indigenous companies in the countries.