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New Procedure for Stumpage Disbursement

Publication- New Procedures for Stumpage Collection and Disbursement
Forestry Commission in Association with the Office of Administrator of Stool Lands



Background
The Forestry Commission (FC) is responsible for the protection of forest lands in Ghana as provided for under section 269 (sub section 1) of the Constitution of the Republic of Ghana. Act 567 of the Constitution specifically mandates the FC with the responsibility for the regulation and management of the utilization of forest and wildlife resources and the co-ordination of the policies in relation to them. Again section 269 (Sub section 2) provides for the authority of the Forestry Commission to approve the grant of rights, concessions or contract in respect of the exploitation of forest and wildlife resource in Ghana.

As regards ownership of forest lands, the Constitution provides under section 267 that all forest lands shall vest in the appropriate stool on behalf of and in trust for the subjects of the stool in accordance with customary law and usage.In recognition of the responsibility and privileges of ownership, the constitution authorizes the Office of Administrator of Stool Lands (OASL) to establish an account for each stool into which all royalty payableThis is provided for under section 267 of the Constitution. The same section of the constitution also mandates the OASL with the responsibility for the collection as well as the disbursement of all stumpage.

Scope of Stumpage Disbursement
The mode of disbursement of stumpage accrued to each stool is adequately provided for under section 267 (Sub section 6). It stipulates that:
Ten percent (10%) portion of the revenue accruing from stool lands shall be paid to the Office of the Administrator of Stool Lands to cover administrativeexpenses and the remaining revenue shall be disbursed in the following proportions-


Copy of Brochure >> Here
Contact:

>> The Customer Service Officer at all District Offices
>> The Customer Service Manager at the Corporate Headquarters, Achimota Accra
>> The Chief Executive at the Corporate Headquarters Achimota, Accra
a) twenty-five percent (25%) to the stool through the traditional authority for the maintenance of the stool in keeping with its status;
b) twenty-five percent (25%) to the traditional authority; and
c) fifty percent (50%) to the District Assembly, within the area of authority of which the stool lands are situated.


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The Role of FC in Stumpage Collection Disbursement
Section 267 sub section 2 of the Constitution of the Republic of Ghana provides that the OASL shall be responsible for the;

“(b) the collection of all such rents, dues, royalties, revenues or other payments whether in the nature of income or capital, and to account for them to the beneficiaries specified in clause (6) of this article; and
(c) the disbursement of such revenues as may be determined in accordance with clause (6) of this article”.

However, under a special arrangement (memorandum of understanding-MoU) between FC and the OASL, the role and function of stumpage collection and disbursement has been ceded to the FC. Under the MoU, FC is authorized to retain a portion of the stumpage. At all times, the quantum of FC’s portion of the stumpage payable is negotiated among all the key stakeholders. Until January 2007, FC used to take 60 percent of all sharable revenue accruing from stumpage/rent as management fees after the 10% administrative fees for OASL has been deducted. The rest deemed as 100 percent is then distributed to the other stakeholders.

In 2006, a recommendation was made for a review of the 60/40 stumpage sharing ratio between FC and other stakeholders. The recommendation advised on the adjustment in the stumpage sharing ration between FC and other stakeholders and fixed it at 50/50. This recommendation was adopted and implemented by the then Minister for Lands and Forestry. On December 20, 2006, FC and OASL agreed to work out a framework for the implementation of the 50/50 stumpage sharing formula.  Actual implementation took effect from January 1, 2007.

The existing scope of stumpage disbursement therefore stipulates that after the 10% administrative fee for OASL has been deducted, the remaining stumpage payable shall be shared by a 50/50 ratio between the FC and the other stakeholders. FC’s share of stumpage payable is to cover cost incurred in the protection of the forest. FC’s portion of the stumpage is to be applied to cover cost and expenses of staff remuneration, administration, operations and investment.

Type of Forests

FC's Share

Stool Land & Others

     

On Reserve

50%

50%

Off Reserve

50%

50%

The formula applies to both on-reserve and off-reserve situations. The 50% share for the other stakeholders is deemed 100% and then distributed based on the proportions spelt out above under ‘scope of stumpage disbursement’.
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Improving FC's Service Delivery
In pursuance of FC’s good forest governance vision and in fulfillment of our social contract with the people of Ghana as described in our service charter, FC has set itself the goal to ensure transparency and accountability in its dealings. Consequently, FC in conjunction with the OASL has over the years been pursuing a policy to publish a half-yearly report on the collection and disbursement of stumpage. This report is to be made available to all affected and interested parties.

Additionally, in keeping with our customer service policy and principles of accountability, openness and continuous improvement, we intent to get as close as possible to our stakeholders for effective and quality interaction. We believe this will help us know and appreciate their needs and expectations regarding the services we render. We intend to establish a very active feedback loop by which system the expressed needs and expectations of our customers could be employed as a useful tool for ensuring continuous improvement in the delivery of our services. It is therefore our expectation that the interaction we seek to establish through this exercise will help FC improve its service delivery to you.

 


 

 
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