2ND TIER PENSION: Why It Is Not In The Interest of Workers

Kofi Asamoah (TUC Secretary General)

The current impasse between organized labour and Government on the implementation of the 2^nd tier mandatory pension scheme, has come too soon, in the scheme of things, with regard to the implementation of the National Pensions Act, 2008 (Act 766)

1. Act 766 is the brain-child, and one of the conditionalities (not made public) of the IMF/World Bank.
The IMF is known to have described SSNIT as a monopolistic organization,that wields too much power in the Ghanaian financial sector.

2. The ultimate objective of the Act is to privatize SSNIT and dismantle its present administrative/governance structures!!!

3.   The strategy has been a gradual process, over the years, of:

I.           Divesting all subsidiaries of SSNIT - income-generating investments such as:

a. Social Security Bank (SSB) into SSB/SG Bank with SSNIT holding a minority shares. SSB/SG is now fully owned by Societe General (SG) bank.

b. The Trust Bank (TIB), Bank of the Year 2007, absorbed into ECOBANK (2012), despite TIB meeting BOG capitalization requirements. Proceeds from the sale of TIB were put into Tullow Oil shares.

c. The recent sale of Merchant Bank, a 100% SSNIT subsidiary, (and a one-time Bank of the Year), into private hands (despite public outcry against the sale), and now called Universal Merchant Bank. The Merchant Bank at the time of its divestiture was a going-concern entity.

d. Many other profit-making assets of SSNIT have been divested on the quiet.

   II.     The proposals, and subsequent passing into law of a new National Pensions Act, 2008 Act (766), which requires the implementation of a 3-tier scheme _1^st tier managed by SSNIT, entitled to 11% contribution, 2.5% to NHIS, and 5% to the 2nd tier Private Scheme managers. The 3'd tier scheme would be different from the other two and would not be funded from the total contribution of 18.5%.

           III.        SSNIT, as an institution, would under the new pension act, be responsible only for the future payment of monthly pensions to retirees, current and future.

          IV.         New bureaucracies would have to be set up to manage the 2^nd tier pension fund, such as the National Pensions Regulatory Authority (NPRA), and their hierarchy of staff, in addition to the the various Trustees, Custodians and Fund Managers, all of whom would have hierarchies of employees under their charge to manage the 5% contributions.

Haruna Iddrisu, Minister of Employment

The Privatization process would begin once the NPRA has been set up, the Trustees, Custodians, and Fund managers having been appointed and the 5% contributions are paid to the various players in the 2^nd tier pension scheme.

I. SSNIT would cede the payment of Lump-sum claims to the 2^nd tier scheme operators, and that is
the first phase of the privatization - a mandatory publicly funded but privately managed occupational pension scheme. (Art 1.b)

At the appropriate time as stipulated by Act 766, high but unrealistic, unsustainable lump-sums would be paid by these 2^nd tier scheme operators to retiring contributors, and these would be possible (despite their high administrative and overhead costs), because funds would regularly flow in, that would exceed the monthly lump-sums to be paid, and not because the funds have been properly invested.

        2.             Given the seemingly high lump-sum payments that the 2^nd tier operators might be paying, workers might be influenced that given the chance, they (2^nd tier operators) could pay higher pensions than SSNIT is offering workers at the time - and then the agitations for SSNIT's replacement, would be fanned like wild fire, and if the evil intent towards scrapping/privatizing SSNIT prevails, monthly pension payments would be taken over by the NPRA and its 2nd tier scheme operators, and then, the privatization of SSNIT would have been complete!!

THE NATIONAL PENSIONS ACT, 2008 (ACT 766) - A NECESSITY?

SSNIT may have its flaws - it pays unreasonable (amounts calculated, using non-transparent formulae) lump-sums and very low monthly pension payments to its retirees; has been investing in non- performing assets; and has been 'killing off all its geese that lay its golden eggs'. But despite the above, is the NPRA a worthy competitor?

THE NATIONAL PENSIONS REGULATORY AUTHORITY

According to the Act,' the Authority is a body corporate with perpetual succession and a common seal and may sue and be sued in its corporate name' (Art 5.1). 'The Authority may for the performance of its functions, acquire and hold movable or immovable property and may enter into a contract or any other transaction' (Art. 5.3), among other qualifying identity traits.

The Authority would have a governing body made up of a Board comprising a chairperson, a Chief Executive of the Authority and nine (9) other members as representatives from various stakeholder organizations (Art 8.1). Other officers to appoint to the Secretariat of the Authority, would include a Deputy Chief Executive officer, a Solicitor/Secretary and other essential staff that would ensure good corporate governance at the Authority. (Arts. 9 -29)

THE SOCIAL SECURITY AND NATIONAL INSURANCE TRUST

Act 766 states that 'there is established by this Act a body known as the Social Security and National Insurance Trust (Art 32.1). The Trust is a body corporate with perpetual succession and a common seal and may sue and be sued in its corporate name (Art 32.2). The Trust may for the performance of its functions acquire and hold movable or immovable property, and may enter into a contract or any other transaction (Art 32.3), among other identifying qualities.

The Trust would have a Governing Body of Trustees comprising a chairperson, a Director-General and eleven (11) others as Trustees (Art35.1). Other officers to appoint to the Trust, include a Deputy Director-General, a Solicitor/ Secretary, and other essential staff to complement the effective running of the Trust at all levels (Arts. 36 -50).

From the above extracts from the Act, it is crystal clear that SSNIT and NPRA are separate organizations, independent of each other, to run on parallel basis, and compete with each other for the same resource, the 18.5% total monthly contributions for workers.

Dr Omane Boamah, Communications Minister

OTHER OPERATORS UNDER THE NPRA

Under the Act, the NPRA would have to license Trustees, Fund Managers and Custodians to operate the 2^nd tier mandatory pension scheme. Trustees would have 'to appoint pension fund managers, custodians and other service providers and ensure their compliance with regulatory requirements or guidelines', among other duties (Art. 121). Pension fund managers registered under the Act, would among other duties, invest the funds in different investments to minimize investment risks, whilst achieving the best return within specific investment activities set by trustees (Art 147.b). Pension fund custodians registered under the Act would hold pension funds, and act upon any directives the trustees may give as to the effective operation of the fund (Arts. 155, 156).

From the analyses of the operators as above, they would have to establish bureaucracies, employ the necessary experts and other ancillary staff if the 2^nd tier is to function efficiently. To cover their overall costs, Trustees, Fund managers and Custodians of the 2^nd tier mandatory pension scheme 'shall be paid fees subject to the limits determined by the Board of NPRA (Arts. 145, 154, 161).

FUNDING OF THE 2ND TIER MANDATORY PENSION SCHEME

As stipulated in the Act, of the total monthly contributions for a worker, SSNIT would get 11%, NHIS 2.5%, and 5% to NPRA!! The running costs, recurrent and capital of NPRA itself, those of the registered Trustees, Fund managers, and Custodians would all be accounted for from the 5% contributions and then the balance would be available for investment. Given that the 2nd tier mandatory pension scheme would be national in nature, the NPRA, the various trustees, fund managers and custodians, would need to set up offices nationwide like SSNIT to operate the scheme. Given the salaries and allowances that would be paid from the Board of NPRA, its staff nationwide, those of Trustees, Fund managers and Custodians nationwide, the acquisition of properties nationwide among other costs, and the mandatory one-off lump-sums that would be accruing due, the basic question to ask is whether the scheme would be sustainable into the unknown future with the 5% monthly contributions. It is certainly, No, except that the intention is not to run 2^nd tier pension scheme separately, permanently. With the necessary agitation from organized labour, the NPRA would take over SSNIT as a going concern, payoff workers who be declared redundant, and undertake the payment of monthly pensions to retirees, present and future. The privatization of SSNIT would then be complete!!

OPERATORS REGISTERED BY NPRA FOR 2ND TIER PENSION SCHEME

Trustees - 1. Petra Trust Company, 2. Metropolitan Pensions Trust, Ghana, 3. Pensions Alliance Trust Company, 4. Provident Life Trust Company’s. Universal Pensions Trust Ltd, 6. Secure Pensions Trust Ltd, 7. Enterprise Trustees Ltd, 8. United Pension Trustees Ltd, 9. Axis Pensions Trust Ltd.

Ken Ofori Atta (Managing Director, Data Bank)

Pension Fund Managers -1. IC Securities Ghana Ltd, 2. Databank Assets Management Service Ltd, 3. Prudential Securities Ltd, 4. Cidan Investments and Advisory Services Ltd, 5. New World Renaissance, 6. EDC Investments Ltd, 7. Cal Assets Management Company, 8. Fidelity Securities Ltd, 9. HFC Investments Services Ltd, 10. IFS Capital Management, 11. Wealth Management Ltd, 12. All-Time Capital Ltd, 13. SDC Brokerage Services Ltd, 14. Frontline Capital Advisors Ltd, 15. NDK Asset Management Ltd, 16. New Generation Investment Services Ltd, 17. Stanbic Investment Management Services Ltd, 18.Unisecurities Ghana Ltd, 19. Chapel Hill Denham Securities Ghana Ltd, 20. Gold Coast Securities Ltd, 21. SIC Financial Services Ltd, 22.EM Capital Partners Ltd, 23. CDH Securities, 24. Liberty Capital Ghana Ltd, 25. Firstbanc Financial Services Ltd, 26. Merban Investments Management Ltd, 27. SAS Investments Management Ltd, 28. GFS Securities Ltd, 29. SEM Capital Management Ltd.

Pension Fund Custodians -1. Ecobank Ghana Ltd, 2. Standard Chartered Bank, 3. Stanbic Bank, 4. Cal Banks. Agricultural Development Bank (ADB), 6. HFC Bank, 7. Prudential Bank. Conspicuously omitted from the Custodians list is the Ghana Commercial Bank (GCB), the largest commercial bank in Ghana. Source - Ghanaweb, Archived News - Monday, 19 March, 2012.

A careful study of the above registered operators (except the Custodians) of the 2^nd tier pension scheme shows that they are all new entities, set up to take advantage of the coming into being of the 'free' fund that may be made available to them to 'manage'; and being new, they do not have the experience, and hence the risk of mismanaging the fund.

Whether or not the present Government is aware of this grand but scandalous scheme (Act 766 was signed 4 December, 2008) and hence the withholding of the implementation of the 2^nd tier mandatory pension scheme, is not clear. A careful study of Act 766, as already stated, shows SSNIT and NPRA are to run on parallel basis, (all things being equal, and according to the spirit of Act 766), into the unknown future. Two scenarios arise with the implementation of Act 766 -I. According to the spirit of the Act, 2. According to the intended purpose of the Act.

1.      According to the spirit of the Act - This would impose additional huge but unnecessary capital
and recurrent expenditure on the total contributions of 18.5% - Huge salaries and Allowances
for the Board of NPRA and its hierarchies of employees nationwide; the same would be for the various Trustees, Fund managers, Custodians and their various hierarchies of employees
nationwide. In addition to salaries and allowances, all the above categories of workers would
be entitled to the payment of 18.5% contributions! All the above expenditure would have to be
borne out of the 5% monthly contributions due on the 2^nd tier mandatory pension scheme. The balance, if any, would be invested to yield any dividend/interest out of which would be paid the one-off lump-sum entitlements to retirees.

2.      According to the intended purpose -The intended purpose of the Act is to run SSNIT and NPRA on a parallel basis, but not permanently - SSNIT would be paying the monthly pensions of the existing and future retirees, from its 11% monthly contributions, and NPRA would be paying the one-off lump-sum entitlements from its 5% contributions. At an appropriate time into the life of the implementation of the Act, and depending on the huge lump-sum that would be paid, workers would be convinced into accepting NPRA as a better altemative to SSNIT, and the agitations would begin, and SSNIT WOULD BE EVENTUALLY PRIVATIZED when NPRA takes over. With the SSNIT take-over, and the extra 11% available, NPRA' would be able' to run the 1^st and 2nd pension schemes on a sustainable basis.

From the above analyses of the purpose of the Act, it is obvious that implementing the Act according to the spirit of the Act would lead to unnecessary extra costs that would have to incur from the total contributions of 18.5% and would rather reduce the total benefits that would accrue to future pensioners, if SSNIT and NPRA are run on a parallel basis into the unknown future.

Implementing the Act according to its intended purpose, is the worse of the two alternatives-
PRIVATIZATION OF SSNIT and its subsequent PERMANENT MISMANAGEMENT, and the ultimate risk of loss of pension rights of all pensioners, existing and future, in private hands

RECOMMENDATIONS

1.       The National Pensions Act, 2008 (Act 766) must not be implemented and therefore should be repealed as soon as possible.

2. SSNIT already has all it takes - the infrastructure, the personnel, the experience, etc., to continue to manage the pension funds of beneficiaries as it is doing now.

3. The extra costs that would be incurred with the implementation of the 2nd tier mandatory pension scheme, should be avoided and used to improve upon the pension rights of existing and future pensioners.

3.SSN IT should have a Board of Trustees constituted with appropriate experts and stakeholders, in addition to the appropriate governance structure, to see to the efficient and effective achievement of its original mission and vision.

5.   SSNIT should be transparent with the calculation of the pension rights.

6.Periodic review of pensions - Art. 80 of Act 766 states that 'The Trust shall annually review the pension payment which shall be indexed to wage inflation rates of active members or another rate determined by the Trust in consultation with the Board. This section of the Act has been abused by SSNIT over the years - in 2011, SSNIT reviewed the pensions of workers of GhCl0.03, across board. A new pensions act that might be enacted should peg monthly pensions to the equivalent of 50% of basic salaries of existing salaries of employees with the same rank on which pensioners retired (and this equates the 'indexed to wage inflation rates of active members' in Act 766) . The arbitrary annual reviews would be avoided as pensioners rights would be adjusted automatically when there are general increases in wages and salaries, and the attendant increases in monthly contributions.

7.SSNIT should invest wisely to earn returns that would supplement the monthly contributions for workers.

8.   The 5% contributions paid to the Bank of Ghana, should revert to SSNIT as soon as practicable.

9.Meanwhile, the Bank of Ghana, should keep records for each worker for the monthly contributions, so far paid on their behalf, and transmit same to SSNIT appropriately.

10. SSNIT is the best pension institution established in July 1965, in Ghana, whose laudable aims and objectives have been eroded over the years with new enactments. The IMF/World Bank have dismantled all our viable establishments, over 300 of them. SSNIT would be the last major entity to dismantle, perhaps, and then with the confusion that would follow, they (IMF/World Bank) would say to themselves, 'Mission Accomplished, Back Home, Guys'. The IMF/World Bank should not have their way this time, more so, even as the Government goes into a possible financial bail-out from them, in the immediate future.

Marrieta Brew Oppong (Attorney General)

OTHER RELATED MANNERS

STRIKES are the 'cheapest and commonest commodities' produced in the Ghanaian economy now. They cost nothing to the producers, but come at great costs to consumers as a whole. There is nothing constitutional, legal and contractual, about strike actions. In the 'Animal Kingdom' of Ghana, 'every ass complains its load is the heaviest', and therefore deserves an extra bite off the national cake, than it enjoys now; Government must accede to their demands or buy their products -strikes -Willy-nilly. So much so was the situation in the 1980's that even conservancy workers held Ghanaians to ransom by working day time (instead of night-time) and spreading night soil indiscriminately around. So despicable were their actions, that their despicable profession was banned and declared unlawful to practice anymore. The trend is even more pronounced now; the question arises as to who are the most important workers in Ghana now?

COLLECTIVE BARGAINING CERTIFICATES IN THE PUBLIC AND CIVIL SERVICES

Collective Bargaining Agreements should normally be signed between employers and workers in the profit-making sectors within an economy, where emoluments are negotiated based on basic pay in addition to other performance related perquisites (perks). The Public and Civil Services are in the non- profit-making sectors of the economy and are therefore funded from statutory funds such as the Consolidated Fund, among others. Government's revenues come mainly from taxes in addition to other sources, the total of which forms the Annual Budget which allocates funds to the various competing ends within the economy. When governments sign collective bargaining agreements with workers, it distorts the Annual Budgets of the Public and Civil Services' shares therein, and implies that the state must collect extra taxes (in perpetuity) to meet the extra demands that workers would make at different times, with different bargaining certificates.

GENERAL INCREASES IN SALARIES, WAGES AND ALLOWANCES

Government from time to time, on its own, announces minimum wages, or are pressured to do so by workers demanding better conditions of service, not out of improved work output, but to meet the rising costs of living and inflationary trends in the economy.

INFLATION IN THE ECONOMY

Inflationary trends in an economy is not in the least, desirable to anyone. But unnecessary strike actions, emoluments negotiated by workers within the non-profit-making sector of the economy (and therefore outside budgetary allocations), and general increases in salaries, wages and allowances, all contribute in one way or another in fuelling inflation. In Ghana striking workers get paid for no work done, apart from the general adverse effects that strikes have on other sectors of the economy. Increases in emoluments through union negotiations, or through general increases by government, all have a two-pronged effect on inflation- i. the demand -pull effect, and ii. The cost- push effect.

The demand pull effect on inflation states that, with extra money (purchasing power) in the hands of workers, their demand for extra goods would increase, and all things being equal (supply of goods remains the same) the extra demand would exceed the available supply; prices must necessarily go up to maintain equilibrium and avoid shortages.

The cost- push effect on inflation states that the extra salaries and wages paid to workers add to the cost of producing goods and services which eventually the worker must buy at an extra cost.

In effect, the worker eventually gains nothing from agitations for more pay, and general increases in emoluments - they end up in a vicious circle - they pay more for demanding more goods, they pay more because cost of production has increased, and they pay indirect taxes (increased import duty on consumables) because government needs more revenue to meet the increase in the wage component of the annual budget.

THE WAY FORWARD

Government (the Executive) must take, and be seen to take charge of the smooth running of the governance structures of the nation. Whilst allowing all arms of government to function without any let or hindrance, the Executive takes ultimate responsibility for all actions, and also has powers to override any other decision taken by other arms of government, in the public interest.

It is in the light of the above, that one has a problem with the way Government continues to handle labour unrests/strikes in the country. Government seems to be spineless in enforcing all laws involving labour matters and hence the impunity with which union leaders declare strike actions on any flimsy excuse. The appointment letters, the basic contracts signed between employer and employee, contain all the terms of employment; all professionals have codes of ethics and swear oaths relevant to their professions; workplace ethics exist in government establishments; collective bargaining agreements exists in public entities; and finally there is the Constitution that prescribes appropriate rights and responsibilities of every citizen - none of these documents recommends strike actions, even impliedly!
Sovereign power rests with the Executive and shares that power with no one! And no person, or any group of persons should be made to feel indispensable - for any job position now, there is at least one person out there waiting to fill that vacancy should it occur.

PREVENTING/MINIMISING STRIKE ACTIONS

1. Heads of public organizations must be held accountable for the peaceful running of their entities.
Appointment letters to such heads must state categorically clear that their continued occupation as
heads, depend on their ensuring that there is industrial harmony in their organizations. Professor Frempong Boateng, then Chief Executive Officer of Korle-Bu Teaching Hospital, stopped the annual ritual of fresh housemen organizing strikes at the Hospital- he told them point blank that their services were not required-and they could work elsewhere outside Korle-Bu. And so it was that new housemen at the Komfo Anokye Hospital took over the annual strikes. 'Go-slow' tactics must also be controlled by heads of department.

2. The academic calendars of all secondary and tertiary educational institutions for every year, must be submitted to the appropriate authorities at the Ministry of Education, and that calendar must be strictly adhered to. Schools must close within the stipulated calendar.

3. Salaries and wages are the motivating factors to work, but where workers willingly refuse to work for as long as they please and they are paid for no work done, they are motivated to continue their strike actions. No worker should be paid for as long they refuse to work.

4. Union dues collected from workers are supposed to serve as 'strike pay/allowance' to striking
workers, where employers (should) stop paying them whilst the impasse lasts. For a long time, on the Ghanaian labour front, union dues have been misapplied by union leaders.

5. The Absence without official leave (AWOL) for ten (10) days' rule must be enforced strictly to striking workers and this amounts to outright dismissal without notice; workers living in official bungalows must be ejected as soon as possible.

6. What if all workers nationwide refuse to work? Well, that is possible and the impact would be great!

The Government cannot be blamed if after offering workers jobs, they refuse to work. It is true that 'one can take a horse to the riverside, but one cannot make it drink'; but it is equally true that when the horse becomes thirsty, it will willingly run back to the riverside to drink. The Government has to keep calm, but ensure that peace prevails whilst the strike action lasts. There would be casualties, one way or another, but at the end of it all, the Government could get monies stopped as emoluments, to finance other essential projects.

7. Union leaders who organize and execute strike actions, must be held to account for any loss imposed on society as a whole.

8. Collective Bargaining Agreements do not belong to the Public and Civil Services. These institutions are non-profit-making and depend on the Annual National Budget. Individual collective agreements within the Public and Civil Services have distorted past, and will continue to distort Salaries and Wages schemes such as the current 'Single-spine Salaries and Wages Structure (SSS)

9. Individual self-development through further education, and hence, upgrades, is the remedy for workers.

10. 'Freedom' is the word in a Democracy; it does not imply lawlessness. Strike actions are nothing but lawlessness. No one is bound to do a particular job for life. Take your present job or leave it. 

David Adjei

Retired Civil Servant
Tel. # 027-5861163
4 November 2014

References: 1.National Pensions Act, 2008 (Act 766)

2. Ghanaweb - Archived News -19 March, 2012

Archived News - 1 October, 2011

Editorial

THE PARADOX OF THE ACCRA METROPOLITAN ASSEMBLY

Whilst going about our duties recently we had to visit the office of the Public health department of the Accra Metropolitan Assembly. This facility amongst others like the Medical and Dental council, the Pharmacy council and the Birth and Death registry is located between the Cocobod head office and the former Kingsway stores on the Kwame Nkrumah Avenue in the suburb of Adabraka called Adjabeng.

There, at a bus stop on the Avenue right opposite Republic House and behind the offices of the Public Health Department, a market is sprawling alongside one of the most prestigious areas of this Ceremonial road named after the first President of the Republic.

It is indeed sad that you see, okro, tomatoes, fish, shoes, second hand clothes, kenkey, plantain and all sort of vegetables, clothes and various merchandise being sold there. The pavement has been taken over, pedestrians and traders have spilled out onto one half of the road leading into central Accra and only half is left for vehicles, thus creating an artificial traffic jam right up to the former Farisco junction.

We read in the newspapers of the threat by the Mayor of AMA to destroy unauthorized structures in Glefe and elsewhere, please Mr. Mayor let’s start from the dual carriageway of the Kwame Nkrumah Avenue. 

Both sides of the street, indeed the frontage of Republic House and the pavement leading to Cocoabod behind the AMA office have been invaded and occupied by traders and they are generating dirt, filth and Waste right out there in the open.

This is causing both vehicular and human traffic jam, destroying the beauty of the place and causing noise pollution to the offices around. Do not let us wait for the road in Accra central to be closed by these traders before we wake up from our slumber to do something.

The fight against poor sanitation and waste, noise and illegal structures and this illegal sprawling market in the bosom of the Public Health Department of AMA is a paradox indeed. Mr. Mayor do something right now.

KWAME NKRUMAH ON THE U.G. C. C.

Osagyefo Dr Kwame Nkrumah

By Nii Ardey Otoo

The United Gold Coast Convention (UGCC) was founded in August 1947 under the chairmanship of Mr. A. G. Grant, a timber merchant. The UGCC then was hailed as the would be nationwide movement, dedicated to restoring leadership into the hands of the ‘chiefs and people’ who had been for too long dominated by Colonial Officials. The Gold Coast government’s Annual Report of 1947 remarked on the UGCC;

“A new movement, the United Gold Coast Convention, which may most conveniently be classified as a political party, sprang up during 1947 and declared as one of its main objectives the attainment of full self-government in the shortest possible time. The movement has not so far contributed to the solution of the practical and urgent problems facing the country but has confined itself to an appeal to nationalist feelings”. During this time the UGCC had no general secretary; they only talk but no action. It was Kwame Nkrumah who breathed political life –action into the UGCC when he became general secretary.

According to Osagyefo Dr. Kwame Nkrumah; “the promoters of the United Gold Coast Convention (UGCC) came from the middle class. They were lawyers, doctors, academics, and indigenous business men, with little or no contact with the masses. When they invited me to become the general secretary of the UGCC they hoped that l would help them to bridge this gap, and to draw into the UGCC the growing anti-colonial and nationalist elements, particularly among the youth, which were at that time beginning to make their voices heard throughout the country.”

“I did not immediately accept the invitation from the UGCC, knowing that it was a movement sponsored by bourgeoisie reactionaries, whose objectives stopped short at national liberation, and who had no plans to bring about fundamental economic and social change. But l agree to accept the position after consultation with the West African National Secretariat. The time has come to get to the grips of imperialism on the soil of Africa, and by working for the UGCC l would at least be actively engaged in the national liberation struggle to end colonial rule. I knew however, that it might not be long before the basic differences between our long term objectives might make it impossible for me to continue to work for them”. 

Under the Governorship of Sir Alan Burns (1941-1947), there were many reforms including a new constitution, known as the ‘Burns Constitution’ which for the first time in the history of the colony Africans were appointed to the Executive Council which used to be Europeans only. The new constitution did not satisfy the hopes and aspirations of the people of the Gold Coast who want nothing less than Self- Government.

Dr. Kwame Nkrumah returned to the Gold Coast on 16^th December 1947 and immediately started working as general secretary of the UGCC. Thirteen days after his arrival, on 29^th December, 1947, the UGCC was officially launched at Saltpond to oppose the “Burns Constitution”, and to press for self- government ‘in the shortest possible time’.  

After the launching of the UGCC Nkrumah set up an office and drew up a programme of action for the leadership, known as the ‘Working Committee’ on 20^th January, 1948. It included the following:

Shadow Cabinet

The formation of a Shadow cabinet should engage the serious attention of the Working Committee as early as possible. Membership is to be composed of individuals selected ad hoc to study the jobs of the various ministries that would be decided upon in advance for the country when we achieve our independence. This Cabinet will forestall any unpreparedness on our part in the exigency of Self-Government being thrust upon us before the expected time.

Organizational Work

The organizational work of implementing the platform of the UGCC will fall into three periods:

First Period:

 Co-ordination of all various organizations under the UGCC: i.e. apart from individual Membership, the various Political, Social, Educational, Farmers’ and Women’s Organization as well as Native Societies, Trade Unions, Co-operatives Societies, etc., should be asked to affiliate to the UGCC.

The consolidation of branches already formed and the establishment of branches in every town and village of the country will form another major field of action during this period.

 UGCC Branches should be set up in each town and village throughout the colony, Ashanti, the Northern Territories and Togoland. The chief or Odikro of each town or village should be persuaded to become the Patron of the branch.

Vigorous UGCC weekend schools should be opened wherever there is a branch of the UGCC. The political mass education of the country for Self-Government should begin at these weekend school.

Second Period:

To be marked by constant demonstration throughout the country to test our organizational strength, making use of political crises.

Third Period: 

The convening of a Constitutional Assembly of the Gold Coast people to draw up the Constitution for Self-Government or National Independence.

Organized demonstration, boycott and strike – our only weapon to support our pressure for Self-Government.

This programme was approved in principle and Nkrumah took the hardest task organizing branches of the UGCC throughout the country.

According to Nkrumah; “This involved almost continuous travel, endless meetings and rallies, and the delivery of hundreds of speeches. Within six months, well over five hundred branches of the UGCC had been established. I usually travelled in the old car bought by the UGCC, but frequently had to hitch lifts on lorries, or had to trek on foot when the car broke down and there was no other means of transport. In most of the places l visited l was given food and accommodation in the homes of supporters of the UGCC. But there were many nights when l and my companions slept in the open by the roadside, when it had not been possible for some reason or the other to reach our destination by nightfall”.

 It must be noted that during this time J. B. Danquah, Obetsebi Lamptey, Ofori Atta, Akufu Addo, and Ako Adjei were sleeping on soft vono mattresses in the comfort of their homes. They were eating bacon and eggs for breakfast, fufu and light-soup for lunch, rice and stew with salad for dinner. While Nkrumah was sleeping on benches, eating koobi and ampesi offered to him by the poor villagers. 

Why Nkrumah left UGCC

By December 1948 the relationship between Nkrumah and the leadership of the UGCC had worsened. According to Nkrumah;

“The UGCC objected to my founding of the Ghana National College to accommodate those students from various colleges and secondary schools who had gone on strike and had been expelled when we were arrested and banished to the Northern Territories. They also objected to the formation of the Youth Study Group, which was later embodied in a nationalist youth movement with the Ashanti Youth Association and the Ghana Youth Association of Sekondi, and known as the Committee on Youth Organization (CYO). They further objected to the steps l was taking to establish a newspaper in order to publicize our policies to the rank and file of the people”.

The inevitable split came in early June 1949, at a special conference of the CYO in Tarkwa. The militant members of the CYO decided they should break away from the UGCC and form their own political party separate from the UGCC. The party should be called the Convention People’s Party (CPP). It was to be a mass-based, disciplined party pursuing policies of scientific socialism. Its immediate task was to obtain ‘Self-Government NOW’ and not in the shortest possible time.     

The CPP was launched in Accra on Sunday, 12th June 1949, before a crowd of about 60,000 people. In Nkrumah’s speech he declared: “The time has arrived when a definite line of action must be taken if we are going to save our country from continued imperialist exploitation and oppression. In order to prevent further wrangling between the CYO, who are ready for action, and the “Working Committee”, who are out to suppress this progressive youth organization, the CYO has decided on a line of action that will be consistent with the political aspiration of the chiefs and the people of the country… I am happy to be able to tell you that the CYO, owing to the present political tension, has decided to transform itself into a full-fledged political party with the object of promoting the fight for full self-government now”.

After his speech, while still on the platform, he asked for pen and paper, and used somebody’s back as a support, and wrote his official resignation from the UGCC and then read it to the people.

UGCC Road Blocks

When it came to ‘political speed’ Nkrumah worked with speed of light and the UGCC worked with the ‘speed of a snail’. They could not keep up with Nkrumah’s speed so they put many road blocks on his way to stop him completely.

The first road block put on Nkrumah’s way was when he was summoned to appear before a special meeting of the Ga State Council, the Accra traditional local authority, to explain what he meant by “Positive Action”. At the meeting some of the executive members of the UGCC were there in force demanding the banishment of Nkrumah from Accra. They blamed Nkrumah for creating lawlessness in the Gold Coast.  The Ga Manste overruled the banishment idea and instead asked Nkrumah to go and explain “Positive Action” to the public. The Reuters’ news agency, representing the imperialist press and supporting the UGCC all along wrote this falsehood about the meeting;

‘Local African Chiefs have sent ultimatum to extremist Home Rule Leader Kwame Nkrumah demanding undertaking by next Wednesday not to cause trouble when Coussey Report on Constitutional advancement of Gold Coast is published next week. He has also been told to promise loyal co-operation of his Convention People’s Party. If he refuses African Authority will “Forcibly Eject” him from Accra to his Native Village of Nzima about 250 miles inland. All Political Leaders promised co-operation in keeping peace except Dr. Nkrumah who said he had “No Guns to Fight” but would resort to Boycotts, Strikes and Spiritual Force to carry the struggle.’

Other obstacle put in Nkrumah’s way was libel suits brought about by all manner of people seeking to stop Nkrumah and the CPP. At a point in time claims against Nkrumah amounted to ten thousand pounds. Supporters of the CPP managed to collect enough money to settle the claims. At a later stage, J. B. Danquah sued the Accra Evening News for libel for an article written about the Kibi ritual murder case. Danquah was awarded damages, but was not content with the damages so he bought the rights of the Evening News paper, the mouth piece of the CPP in order to stop the progress of Nkrumah and the CPP.

According to Nkrumah; “…we had anticipated him. The Head Press, as it then was, was immediately taken over by the Heal Press, which continued to publish the same newspaper under a new name The Ghana Evening News. In other words Nkrumah outwitted Danquah from achieving his objective of closing down the news paper.

Another obstacle was the issue of “federalism” which the opposition was demanding as opposed to Nkrumah’s unitary form of government. The National Liberation Movement (NLM) representing the opposition walked out of the Assembly any time constitutional issue on federalism was raised. On April 5^th 1955 a Select Committee was set to examine the question of federal system of government. The Select Committee on 26^th July, 1955 issued its report, in which it declared against a federal form of government. Instead it recommended the establishment of Regional Councils to which the central government would delegate certain powers and functions.  

The last obstacle before Independence was achieved was Dr. K. A. Busia’s, trip to London. After the “Independence Motion” was passed by 72 votes to none, Professor Busia, official leader of the Opposition, actually travelled to London to appeal to the British government not to grant Independence. He said the Gold Coast was not ready for Independence: “We still need you (the British) in the Gold Coast. Your experiment there is not complete. Sometimes l wonder why you seem in such a hurry to wash your hands of us.” Due to the militancy of the masses the British Government rejected his appeal and on 17^th September 1956, in response to a formal request from the CPP to the British Secretary of State to fix a firm date for independence, the Governor informed Nkrumah that 6 March 1957 had been decided upon. On 5/6 of March at midnight, at   the Polo Ground the Union Jack (British flag) was lowered in the presence of 100,000 people.  The red, gold and green flag of Ghana was raised with cheerful cries of FREEDOM! FREEDOM!! FREEDOM!!!

Conclusion

Some political and social commentators from the Danquah-Busia political tradition often speak as if the UGCC was a dynamite movement working hard for the people in the Gold Coast before Nkrumah was invited.  The truth of the matter was that it was Nkrumah who came to inaugurate the UGCC, breathed political life into it and rallied the masses against British colonialism. Another fact which needs to be recognized was that it was Nkrumah who united the opposition by introducing the “Avoidance of Discrimination Act” which forbade the existence of political parties based on regional, tribal, or religious basis. Before then, the groups opposing Nkrumah was religious or tribal based. Ga Shifimo Kpee was Accra based, Northern People’s Party was northern based, National Liberation movement was Ashanti based, Togo Congress was based in Togoland and Muslim Association Party, was religious based. This Act forced all these sectional organizations to form the United Party lead by Dr. K. A. Busia. The CPP was the only party which was national in character.  

It must be noted that not any of the leadership of the UGCC studied politics as a vocation. They were lawyers, businessmen, doctors and social scientists; politics was a hobby for them. Dr. Kwame Nkrumah was the only professional politician among them. He preached African nationalism in African churches while in the USA. His political message for African liberation and redemption was so profound that the Federal Bureau of Investigation (FBI) started investigating him to see if he was a registered member of the Communist Party of the USA.

 Initially Nkrumah had wanted to write his doctoral dissertation on; ‘Imperialism: Its Political, Social and Economic Aspects’. But he later changed it to; ‘The Philosophy of Imperialism with special reference to Africa’. No wonder he used constitutional means to destroy imperialism in the Gold Coast and Africa.

Unlike Nkrumah not any of the members of the UGCC studied in depth the ideas of Lenin, Mazzini, Marx, Hegel, Marcus Garvey and others whose thoughts armed him for the liberation struggle. In fact none of them will touch the works of these twentieth century revolutionaries with a ten feet pole. They were afraid of revolution. Nkrumah said the book which inspired him most was The Philosophy and Opinions of Marcus Garvey with its philosophy of ‘Africa for the Africans’ both at home and abroad. He learnt from them that the masses when organized with a correct ideology and political leadership can achieve their freedom.

Fifth Pan-African Congress

It was the Fifth Pan-African Congress (5^th PAC) held in Manchester, England, 15-21^st October, 1945 which crowned Nkrumah’s political work abroad. The Pan-African legend George Padmore and Nkrumah were co-secretaries of the organizational committee which planned the Congress. The 5^th PAC adopted scientific socialism as its political philosophy. Also two Declarations were addressed to the imperial powers, one written by DuBois, and the other by Nkrumah. Both stressed on right and determination of colonial peoples to be free, and condemned capitalist exploitation of the masses. Nkrumah ended his declaration with the following; ‘Today there is only one road to effective action- organization of the masses. Colonial and subject peoples of the world – unite’. The Congress also called on Africans and peoples of African descent to organize into political parties, trade unions, co-operatives and so on to campaign for political and economic freedom.

It was the success of this Congress which influenced the formation of the UGCC in the Gold Coast in 1947 and then invited no other than Nkrumah to become its general secretary. The UGCC was Nkrumah and Nkrumah was the UGCC. When Nkrumah left the UGCC, he took its political life away so the UGCC died a natural death.

The writer is a subsistence farmer and an organizer of the A.A.P.R.P

E-mail: yesnkrumahneverdies@yahoo.com