The Ghana Investments Promotion Centre (GIPC) is seeking to administer hefty sanctions to businesses that fail to register their technology transfer agreements (TTAs) with the centre with its review of the law governing its operations.

The new sanctions, according to the centre, will be tough and strongly enforced and could see the investments agency liaising with the Bank of Ghana to suspend remittances by companies that do not have the relevant TTA registration and certification.

“In the review of the GIPC Act, we have proposed that the sanctions should be significantly increased.

Aside from fines, there are other options open to the centre such as the suspension of registration and ordering the repayment of any incentives that’s been extended to the company,” Head of Legal Division, Naa Lamle Orleans-Lindsay, said at GIPC’s CEOs Breakfast Meeting on “Technology transfer agreements: eligibility, compliance and liabilities” held in Accra.

“For now, we are stepping up sensitisation to clients, both local and foreign investors, on the need to register their TTAs. But as we go ahead, we’ll start implementing the sanctions very strongly,” she added.

A TTA is an agreement entered into by two entities when a foreign firm/enterprise transfers its technology, expertise, know-how or facilities to its Ghanaian counterpart or partner.

Under the GIPC Act 865, all such agreements must be reviewed and registered by the GIPC, the sole agency that is responsible to monitor such activities in the country.

Failure of businesses to adhere to their TTA requirements could create an avenue for tax evasion, money laundering as well as facilitate the illegal exportation of currency and capital flight.

The illegal practice also engenders cedi depreciation, which could induce bankers to compromise breaches of processes and procedures and with adverse impact on the country’s foreign reserves.