Cement manufacturers could face 3 years in jail per proposed Legislative Instrument

Manufacturers of cement products in Ghana could face up to three years in jail if they violate provisions of a new Legislative Instrument (L.I.) proposed by Trade Minister K.T. Hammond.

This stringent penalty is outlined in a draft document that Hammond intends to present to Parliament, as seen by Newsghana24.com.

The Trade Minister’s justification for introducing the L.I. is based on the need to address rising cement prices. According to Hammond, stakeholders were consulted before drafting the instrument.

However, this claim is contested by the Executive Secretary of the Cement Manufacturers Association of Ghana (CMAG), Rev. Dr. George Dawson-Ahmoah, who argues that manufacturers were not involved in the process and are unaware of the document’s contents.

“We don’t know anything about it. And with my common knowledge in legislative instruments, don’t you involve stakeholders before it gets to Parliament? Don’t you involve stakeholders in the process?” Dawson-Ahmoah questioned on Tuesday.

He believes that the approach taken by the Minister is akin to putting the cart before the horse and criticizes the lack of consultation.

In response, K.T. Hammond emphasized the necessity of the L.I. to combat what he describes as the exploitation of the public by a cartel of cement manufacturers.

Speaking to journalists, Hammond pointed out that cement prices have been consistently rising and need regulation.

He highlighted the country’s increased cement production capacity, which now stands at over 11 million tons, far exceeding national demand.

“At a point in time, we were not producing so much cement in the country. Now we have an installed capacity of over 11 million tons in the country. Our demand is nothing like 11 million, so it must be a very profitable enterprise,” Hammond stated.

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He expressed concern that the public is not getting fair prices for cement, suggesting that the current pricing practices are arbitrary and exploitative.

“I think it behoves those in responsible positions in authority to ensure that the good people of Ghana are not fleeced. I am not comfortable, I don’t believe that we’re getting good prices for all that it’s worth,” Hammond said.

He emphasized the critical role of cement in the economy and the need for reasonable pricing to ensure affordability and accessibility.

“Now I take the view that it’s about time that the country was better served by those who are selling this product to us. You have a kind of arbitrariness in the pricing of cement. It’s been so haphazard, I strongly believe that there must be some sanity in the system,” he added.

The proposed L.I. aims to bring order to the cement pricing system and ensure that manufacturers do not exploit the market.

By introducing this legislative measure, the Trade Minister seeks to protect consumers and stabilize the prices of a vital construction material.

The debate surrounding the consultation process and the necessity of such stringent penalties reflects the broader challenges in regulating essential commodities and balancing the interests of stakeholders with public welfare.

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