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Social Service Cost
Under the Timber Resources Management Act 547, 1997 (the law that regulates timber operations in Ghana), all timber felled for either commercial, domestic or social purposes attract a stumpage fee. Stumpage fee is the value of the timber destined for harvest. It represents revenue to the forest owner and charges for the felled timber.
The same law establishes the Social Responsibilities Agreement (SRA) which mandates timber companies to provide certain social amenities or development projects to communities living around the forest estates. This cost should not be less than the equivalent of 5% of the stumpage fee paid.
However, due to Samartex's rural location, where government resources are spread thin, or are virtually non-existent in certain areas, the Company ends up spending far above the mandatory 5%. The table below indicates the yearly average expenditure over a period of five years, which is in the region of 105%!
Table of Social Service Costs in EURO
Details
 |
1999 |
2000 |
2001 |
2002 |
Up to June 2003 |
Total |
| Electricity |
125388,14 |
40868,97 |
81058,63 |
83947,56 |
30104,88 |
361368,18 |
| Water |
112739,88 |
27830,80 |
40321,40 |
68246,80 |
24187,79 |
273326,67 |
| Community donation |
59847,90 |
68869,29 |
41738,88 |
26192,01 |
7803,06 |
204451,14 |
| School |
16430,63 |
13434,17 |
15086,93 |
9523,66 |
4355,2 |
58830,59 |
| Scholarship |
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2808,99 |
4339,28 |
7148,27 |
| Public roads |
517246,99 |
218155,44 |
322580,64 |
352941,18 |
170376,69 |
1581300,94 |
| Hospital |
110266,16 |
80712,78 |
78773,84 |
108288,98 |
29281,09 |
407322,85 |
| Sports development |
12338,77 |
10030,03 |
8664,02 |
25614,65 |
21738,81 |
78386,28 |
| Total |
954258,47 |
459901,48 |
588224,34 |
677563,83 |
292186,80 |
2972134,92 |
| Stumpage fees |
695653,22 |
541608,88 |
505512,63 |
753191,07 |
343701,68 |
2839667,48 |
| Social cost / Stumpage fee % |
137% |
85% |
116% |
90% |
85% |
105% |
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