The Importers and Exporters Association of Ghana (IEAG) is concerned over what it describes as a “mafia” system of illegal auctions at the country’s ports.

The Association is accusing politically connected cartels of exploiting forex scarcity to dispossess legitimate traders of their goods.

In a statement signed by Samson Asaki Awingobit, Executive Secretary of IEAG, it said the deepening shortage of foreign exchange has left many importers unable to clear consignments, particularly perishable goods such as frozen foods, from the ports.

Rather than receiving relief, IEAG says its members are being subjected to a predatory cycle where their investments are hijacked and auctioned under questionable circumstances.

“Due to importers’ inability to secure forex on time to clear their goods, their consignments are pushed onto the Undercleared Cargo List (UCL),” the statement explained.

“Shockingly, the statutory 60-day grace period before auctioning has been arbitrarily reduced to 21 days. Politically-connected businessmen lie in wait for this window to elapse, after which goods are dubiously auctioned without recourse to the importer.”

The Association further alleged that proper gazetting and legal processes are ignored, while affected traders are left to suffer crippling losses.

More scandalous, according to IEAG, is the fact that importers whose goods are seized are still forced to pay demurrage on consignments they never had the chance to clear, while the politically connected buyers escape such costs and instead pay shipping lines service charges ranging between GH¢6,000 and GH¢10,000.

“This fraudulent system not only robs importers of their hard-earned capital but also denies the state valuable revenue at a time when Ghana desperately needs every pesewa to stabilise the economy,” the Association stated.

IEAG described the situation as “predatory and heartless,” warning that it undermines investor confidence and contradicts government’s own call for local business growth and inclusiveness.

“How can government, on one hand, call for local business growth, while on the other hand allow such hostile practices that only empower corrupt political cabals to the detriment of genuine traders?” the Association queried.

To address the crisis, IEAG is demanding the immediate restoration of the 60-day UCL grace period, the introduction of a first-time clearance option to allow importers who miss deadlines to pay penalties instead of losing their goods, a comprehensive investigation into the cartels behind the auctions, and urgent intervention by the Bank of Ghana to make forex available at fair and predictable rates.

The Association warned that failure to act could cripple local businesses and plunge the economy further into instability.

“The IEAG wishes to make it clear that it will not sit aloof while its members are subjected to such exploitation.

"We stand ready to explore every legal and legitimate means, including mass action, should government and relevant authorities fail to act swiftly,” the statement concluded.