“Goodwill” is adversely affecting local trade(11/6/09)

The Ghana Union of Traders Association (GUTA) has appealed to the Ministry of Works and Housing and the Rent Control Department to enforce provisions of the Rent Act 1963 (Act 220) which makes it an offence for property owners to demand the payment of any money apart from rent.
The enforcement of the Rent Act would also check the payment of astronomical rent and other charges to property owners by tenants and traders.
At a press conference in Accra last Tuesday, the Deputy Secretary General of GUTA, Mr Alpha Shaban, who conveyed the concerns of the traders, said the trading community was being saddled with a “monstrous illegality” termed “Goodwill”.
Goodwill is huge amount of fees which, according to the Deputy General Secretary, ranged between $45,000 and $70,000 and is charged by property owners depending on the location of the business premises and their sizes.
The goodwill, which is separate from the normal legal rent, usually covers a period of 10 to 15 years.
Mr Shaban said what was more worrying about the goodwill was that no receipt was issued to cover the transaction and was not part of the tenancy agreement.
He said the union decided to research into the illegalities involved and their implications before holding the press conference to call for a halt to the illegal practice.
He said the various stakeholders had to stand up to the challenge to save the investments of the business community and protect the ordinary Ghanaian from the shackles of unsympathetic landlords.
Mr Shaban cautioned property owners who were into the practice to stop, adding that the union would be ready to defend its members and the larger business community in a court of law to prove their case.