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Stakeholders slam proposed cement price regulation bill as unconstitutional


Stakeholders in the construction ecosystem have cited constitutional anomalies in the proposed Legislative Instrument (LI) to regulate cement prices in the country. 

The stakeholders, notably the Ghana Chamber of Construction Industry (GhCCI) and the Ghana Chamber of Cement Manufacturing Association (COCMAG), have indicated that the current Bill is unconstitutional. 

Mr. Emmanuel Cherry, the Chief Executive Officer for GhCCI, criticised the methodology of presenting the bill to parliament. 

He said the Ministry had not engaged key stakeholders to seek their input on the bill, which was a prerequisite in the law-making process.

Their comments come against the backdrop of the proposed bill by the Ministry of Trade and Industry to regulate cement prices. 

‘We are representing the entire construction industry: professionals, artisans, trade associations, as well as academia,’ he said. 

Mr Cherry said the challenge was that the proponents of the Bill had not consulted major stakeholders in the drafting of th
e Bill.

‘The composition of the Committee to regulate the prices of cement does not include major stakeholders, including our Chamber,’ he added. 

The CEO said that the law that established the Ghana Standard Authority (GSA) did not have any mandate pertaining to price regulation; therefore, any attempt to enable the Authority to regulate cement prices was unconstitutional. 

He called for the drafting of a Consumer Price Protection and Competition Law to give credence to the GSA’s ability to legally regulate cement prices. 

Mr Cherry said with the exception of cement manufacturers, it was unclear how the prices would be controlled with respect to the other entities in the cement manufacturing and distribution value chain. 

The Ghana Standard Authority (Pricing of Cement) Regulators Bill 2024 aims to streamline the regulation of the pricing of cement for wholesale and retail distribution.

The Bill also aims to prevent gouging in the pricing of cement and promote competitive practices within the cement in
dustry. 

The proposed Bill, spearheaded by the Ministry of Trade and Industry, comes against the backdrop of an incessant increment in cement prices and other building materials.

Bishop George Dawson-Ahmoah, the Chief Executive Officer for the Ghana Chamber of Cement Manufacturing Association (COCMAG), reiterated that the Bill was unconstitutional because it was not hinged on the ‘parent Act’ of the GSA. 

He said the Ministry had never engaged his outfit on the proposed Bill, adding that the exclusion of their input would render the enforcement of the bill difficult. 

He urged the Ministry to withdraw the Bill, re-engage the relevant stakeholders, and relay the bill in parliament. 

Source: Ghana News Agency