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Home»Business»Fallout of Labianca saga: Govt reverses discount on FOB value of goods and HDV of vehicles
Business

Fallout of Labianca saga: Govt reverses discount on FOB value of goods and HDV of vehicles

By newsfileghDecember 29, 20223 Mins Read
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Officers of the Customs Division of the Ghana Revenue Authority would no longer be able to offer discount on imported goods at the ports at their own discretion from 2023.

This follows government’s reversal of the policy discount on the free on board (FOB) value of general goods and the home delivery value (HDV) of vehicles.

Special Prosecutor, Mr. Kissi Agyebeng made the announcement in a press release issued on Thursday, December 29, 2023.

“The OSP (Office of the Special Prosecutor) notes, with gratification, that following its various investigations and interventions at the Customs Division, the Government has reversed the discretionary discount on the free on board (FOB) value of goods and the home delivery value (HDV) of vehicles effect 1 January 2023.”

According to the Special Prosecutor, “The new policy effectively shuts all avenues for officers of the Customs Division to grant discretionary markdowns and removes opportunity for corruption and corruption-related activities.”

Meanwhile, the release said the various investigations commenced by the OSP at the Customs Division would still proceed and would continue to monitor the implementation of the new policy.

Earlier in November 2021, the Special Prosecutor, Kissi Agyebeng, was petitioned to launch an investigation into the Customs Division of the Ghana Revenue Authority and La Bianca Company and its subsidiaries for alleged evasion of import duties since 2017.

La Bianca Company is involved in the importation of frozen foods into the country.

According to the petitioner, Frank Asare, the owner of La Bianca Company, one Eunice Hinneh, who also serves on the Governing Board of the Ghana Ports and Harbours Authority and the Council of State, has used her position to influence an arbitrary markdown on import duties.

“Complainant says that grant of the 10% markdown on legally prescribed benchmark values to the La Bianca was done arbitrarily with this known process,” the petition reads.

He revealed that this is not the first time La Bianca has been granted an illegal markdown on imported frozen products.

“On 20th April 2021, the Company was granted a 5% to 10% markdown on similar imported products contrary to the dictates of the law,” he said.

However, on 3 August 2022, the Office of the Special Prosecutor published an investigation report in respect of a complaint against Labianca Company Limited and the Customs Division of Ghana Revenue Authority.

A major finding of the investigation led to the recovery of ¢1.074 million from Labianca, which the OSP attributed to institutionalised culture of lighthearted unconcern regarding impropriety of action at the Customs Division in respect of the grant of customs advance rulings and other ruling regarding the importation of goods, which indicates a high propensity to engender corruption and corruption-related activities.

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