PRESIDENT MILLS AND GENERAL SMITH MUST COME AGAIN ON KUMASI SHOE FACTORY

As former Military Officers we have serious concerns about the involvement of the military in politics, especially in our 20 year old democracy and given the recent pronouncements by the current government and having served in various intelligence capacities under the PNDC From 1982-2002, we feel we need to speak out against this absurd idea of turning our gallant armed forces into modern day shoemakers!

On Monday 1st August 2011, it was announced that the Ghana Armed Forces (GAF) was to take over the defunct Kumasi Shoe factory under a partnership agreement with Czech company, Knights S.R.O (http://www.knights.cz/index.php?energetika&iv=1&lang=en).

The defence minister Lt Gen. Joseph Henry Smith, said a holding company (Defence Industrial Holding Company) – DIHOC) had been established for that purpose and that a $50 million credit facility had been secured to get the place running once again.

We are all excited that the government has embarked on a policy of industrial development and job creation however we are concerned about the manner, mechanism and vehicles that have been established to promote this initiative and the use of the military in this exercise which is against the spirit of our National Constitution.

QUESTIONS FOR PRESIDENT MILLS AND GENERAL SMITH TO ANSWER

A number of questions immediately come to mind that need to be answered By The President of the Republic of Ghana, Professor John Mills and the Defence Minister Brigadier General(rtd) Joseph Smith.

1. Is DIHOC established by an act of parliament?
2. what was the basis for the decision to partner the Czechoslovakian company Knight – was this arranged by Victor Smith?
3. has the act of parliament of Ghana relating to the role of the military been changed to include ‘engaging in non-military specific commercial activities?’
4. Are there plans for the air force to reconvene operations as a domestic flight carrier and will the Navy engage in fishing activities?
5. Were do we draw the line and what are the effects on competition with the domestic economy. F 6 why $50 million? How many shoes and at what cost would we need to produce and sell to make us competitive?
6.What was the basis for choosing Knights?
7. What is Knight bringing into the transaction and what is the value of their stake in the business?
8. We believe this is a joint venture what is the ownership/share holding structure of the entity created out of the $50 million USD investment. Is that the going rate for a shoe factory?
9. If the shoes are either too expensive or not suitable for the military would they be obliged to buy them?
10. How many people will be employed, what is the cost per dollar terms of each job created? Could the money not have been used to create more jobs by engaging in value added agri-business which has a higher multiplier value and bigger economic impact?
11. If the investment was specifically for the manufacture of exclusively military equipment or armaments a case could have been made to justify the establishment of this entity composed of non-serving/retired members of the military who had established a commercial entity (possibly in partnership with a state agency) to engage in industrial activity.
12. The defence minister in his address stated ‘DIHOC will be managed by qualified civilians, as well as qualified retired service personnel who had the experience in the management of business enterprise’. Is DIHOC then not going to be another avenue for providing employment for foot soldiers and party functionaries?
13. Is DIHOC going o be managed by ex military/Security Services top brass who have proved their loyalty to the NDC government? Our experience with this kind of industrial activity is that unfortunately the DIHOC will go the way of GIHOC and fail due to the ‘enya mi papa ewduma’ or ‘eye aban edwuma’ syndrome? The state in its current composition lacks the capacity to govern yet alone enter into industrial production.

We believe that the cost will go over and above budget, staff selection will be predominantly made up off NDC sympathisers and not based on competence or ability through a competitive selection process.

We should not tickle ourselves and laugh. This initiative although on the surface seems commendable is not. It is a vehicle created by the Mills/Mahama led NDC government to consolidate its hold on the Ghanaian political establishment through fair or foul means. The NDC government is anxious of how it would fare in the 2012 election because it is conscious of its rapid loss of popularity and good will due to not only its incompetence but also the arrogance of its functionaries.

A lot has been said about the discipline of the military/soldiers and how this asset can be used to run businesses. I don’t doubt the discipline of Ghanaians including those in the military however if the members of the military want to engage in business/commercial activities they should resign from the service and set-up businesses like so many of our compatriots such as Prince Kofi Amoabeng CEO of UT Bank.

If we are to go my the military discipline analogy as agued by Victor Smith and other NDC sympathisers it won’t be long before they agitate for the military to take over the reigns of government as they did during the (P)NDC period. What they fail to realise that discipline is not the preserve of the military and that the discipline required to run a business or government although similar in some instances is not the same as military discipline with its mantra of ‘obey before complain’ and not one of openness, choice and the emphasis on the economic incentive which characterises private enterprise.
What is potentially at risk with the creation of this ‘Military Industrial Complex’ is what C.Wright Mills in 1956 described as a class of military, business and political leaders driven by a mutual interest and is effectively beyond democratic control.

The Ahwoi brothers who today remain the ‘God Fathers’ of the NDC party have devised a strategy of maintain their hold on Power post 2012 election by winning the support of the security agencies. They intend to use them to suppress the will of the populace when the time comes to make a democratic choice. This state of affairs cannot be allowed to continue.

The first manifestation of this strategy is the STX housing deal which was in the first phase exclusively for the military and police (Security Agencies/Services). The question is why the military and police as recipients of houses but not nurses, teachers, civil servants and other key workers living and working in the regional and district capitals to keep the engine of government working? The answer is simple and straight forward because they do not bear arms and hence will not be able to help the NDC retain power through force of arms. Our experience shows this is really dangerous for our country and the warning signs are there for all to see!
These new corporate owners by virtue of their positions in DICOM as sympathisers and foot soldiers of the NDC will contribute heavily to their benefactors in the form of electoral funds and other resources to ensure they retain power since that will guarantee their livelihood.

If that was not the case and industrial complex would have been established for all teachers to engage in the manufacture of text books, schools uniforms and shoes for the needs of thousands of school children.

The Mills government is not putting the interest of the country at heart. they have sought to focus on engaging in state transactions and investments which provide them with avenues to raise money for the purposes of electioneering and also put in place mechanisms to ensure that they stay in power at all cost after the 2012 election.

In as much as we have extremely competent and professional soldiers we should not allow President Mills and his hawkish allies in government in collaboration with their God Fathers the Ahwoi brothers to circumvent the democratic process and their desire to remain in power.

The state must find innovative ways of stimulating industrial development as a means of transforming the nature of our economic base and creating employment. However this must be done in a way that provides an opportunity for all well meaning ambitious dynamic and brave entrepreneurs. An industrial strategy that is devoid of avenues for rent seeking, corrupt practice and conflict of interest arising from nepotism etc. The basis upon which the military has co-opted into this venture is not consistent with the modus operandi of a modern professional armed force. We are advising Ghanaians to reject this dubious use of the countries hard earned resources and ensure that that all the questions raised have been answered

Concerned Former Military Officers
Major (rtd) Eric Tei Osabutey
Captain(Rtd) Charles Oracca Tetteh
Lt Colonel(rtd) Kyei Nimako
Captain(rtd) Joe Koranteng
Wing Commander(rtd) Dela Anastui
Accra