IEAG threatens showdown over “Mafia-style” port auction

The Importers and Exporters Association of Ghana (IEAG) has sounded an alarm over what it describes as a “mafia-style” system of illegal auctions at the country’s ports.

The association also accused politically connected cartels of manipulating forex shortages to seize and auction goods belonging to legitimate traders.

In a statement signed by Executive Secretary Samson Asaki Awingobit, the Association expressed deep frustration over how the worsening foreign exchange crisis is crippling businesses, especially those dealing in perishable goods like frozen foods.

According to the IEAG, many importers are unable to access forex on time to clear their consignments, leaving their goods stuck at the ports and vulnerable to auction.

Instead of receiving relief or support, these traders are reportedly pushed into a predatory cycle.

The Association revealed that affected goods are swiftly moved onto the Undercleared Cargo List (UCL), where, contrary to the legally mandated 60-day grace period, goods are now being auctioned in as little as 21 days.

IEAG alleges that politically connected businessmen deliberately wait for this shortened period to expire, after which they acquire the goods through dubious auctions that completely bypass legal procedures, including the proper gazetting process.

Even more troubling, according to the Association, is that while importers lose their consignments, they are still forced to pay demurrage fees on cargo that was never allowed to clear.

Meanwhile, the well-connected beneficiaries of the auctions escape these charges, instead paying fixed service fees ranging from GH¢6,000 to GH¢10,000 directly to shipping lines.

IEAG described the situation as fraudulent, heartless, and damaging not only to individual businesses but to the national economy as a whole.

It emphasised that this practice strips importers of their capital, erodes investor confidence, and denies the government badly needed revenue at a time of economic difficulty.

The Association questioned how the government could promote local business growth while allowing corrupt practices that blatantly undermine genuine traders.

It called for immediate restoration of the original 60-day grace period, the introduction of a “first-time clearance” option allowing importers to pay penalties rather than lose their goods, a full investigation into the auction cartels, and urgent intervention by the Bank of Ghana to make foreign exchange more accessible and predictable.

IEAG warned that failure to act swiftly will push many local businesses to collapse, further weakening the economy.

The Association concluded by affirming that it will not sit idle while its members are exploited and stands ready to pursue all legal and legitimate means, including mass action, should the authorities fail to respond appropriately.

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