GUTA Raises Concern About 'Goodwill' Rent

The Deputy Secretary General of the Ghana Union of Traders Association (GUTA), Mr. Alpha Shaban, has appealed to government to address the issue of illegal rent charges, in the country. He said this has become necessary because some landlords were using “good-will” to make business operators pay rents ranging from $45,000 to $70,000 for a period of between 10 and 15 years depending on the location of the premises and size.

Mr. Shaban made the appeal in Accra on Tuesday at a press conference organized by GUTA to address violations of the Rent Act.

Mr. Shaban stated that after thorough research by GUTA into the Rent Act 1963, Act 220, it has been found out that it is totally illegal and fraudulent for any landlord to take “good-will” from tenants.

“Because the fee is faceless the landlords do not issue receipts covering them, implying that they are quite aware of its fraudulent nature as well as the legal implications,” he said.

He said “GUTA as a union should have reacted long ago, but instead decided to thoroughly research the illegalities involved and their implications, before calling for a halt in the illegal practice.

“Some landlords deliberately refuse to issue receipts covering such payments, as well as refusing to state the fee in their tenancy agreements” he said.

He cautioned any landlord who is into this illegal practice to put a stop to it, adding “we will be ready to defend our members and the larger business community in a court of law to prove our case.”

Mr. George Ofori, President of GUTA said that it was “lack of knowledge” which has allowed this problem to escalate.

He said “unless they do their own research, the public are totally unaware of many of the laws passed by parliament.

“This is why this monstrous illegality carried out by landlords has been allowed to continue for so long.”

He said GUTA want to raise awareness and educate the public, so they can protect the ordinary traders who have been exploited for so long.

Mr. Ofori appealed to the media to help educate the public on the Rent Act, in order to reduce the illegalities.