The Ghana Investment Promotion Center (GIPC) has announced its decision to strengthen its sanctions against investors and businesses that fail to register their Technology Transfer Agreements with the regulator.

Speaking at a media workshop on Thursday, the Head of Legal Division with the GIPC, Naa Lamle Orleans-Lindsay, said the evasion of payment of the Technology Transfer Agreement (TTA) is causing the nation to lose more revenue.

“The GIPC may take a harder stance against companies who transfer fees under unregistered agreements, and then offence penalties will come on board.

“There are a lot of companies and even multinational companies with several lawyers and accountants who are on retainer and say that they didn’t know that there is a TTA law they should comply with,” she noted.

Technology Transfer Agreements are Agreements between a company in Ghana (Transferee) and a company outside Ghana (Transferor) for the provision of services (not goods) by the Transferor to the Transferee for not less than 18 months.

The Technology Transfer Regulations, 1992, L.I. 1547 is set out extensively terms and conditions applicable to technology transfer agreements.

GIPC’s role in registering TTAs includes reviewing applications, registering, keeping records, monitoring and renewing agreements.

Mrs Orleans-Lindsay said, “TTAs must be between a Ghanaian incorporated company (Transferee), and foreign-based company (Transferor), duration of the TTA should be more than 18 months.

“The maximum duration is 10 years ( Renewal applications are 18 months to 5 years), and payment for the technology is transferred by the Transferee through the banking system.”

The Transferee is obliged to pay for these services by transferring fees to the Transferor.

According to her, failure to register a TTA with the GIPC is a breach of the GIPC Act 2013, Act 865 and L.I 1547 liable to a summary conviction.

“A company that fails to register its technology transfer agreement with the GIPC should not transfer fees and charges to the transferor regarding technology transfer.

“The GIPC may also suspend, cancel or revoke the registration and advise Bank of Ghana to suspend any remittance and incentives granted to the company etc.,” she added.