REMARKS BY HON DEP MIN FOR DEFENCE (DIHOC BOARD CHAIRMAN)

Your Excellency, distinguished invited guests, ladies and gentlemen, I would like to stand on the existing protocols and express my utmost delight as I make these few remarks in my capacity as the Board Chair of the Defence Industries Holding Company Limited (DIHOC). I am very happy that this milestone in the history of DIHOC is attained during my tenure as Chairman of the Board tasked with the responsibility of ensuring that a Military Industrial Complex is established to actively embark on industrial development projects to enhance national socio-economic development.

Your Excellency, Under the Tier Three Responses of the National Security Strategy 2020, my Minister the Hon. Dominic Nitiwul, MP Bimbila, is tasked to make proposals for the establishment of a Military Industrial complex for Ghana as part of our national economic strategy based on the “Ghana Beyond Aid Agenda.”

Your Excellency, I’m glad to note that, even before the framers of the National Security Strategy came out with the policy, the Ministry of Defence and for that matter the Ghana Armed Forces had already envisioned and laid the foundation for a Military Industrial Complex
 with the establishment of DIHOC. This was borne out of the understanding that such a complex will not only ensure that the logistical needs of the Ghana Armed Forces are met, but also enhance the internally generated funds capacity of the Ghana Armed Forces and also serve as an employment avenue for retired service personnel and the teeming youth alike.

In countries such as the United States, the United Kingdom, Germany, Norway, Finland, Greece, Slovakia, Argentina, Canada, Brazil, Bulgaria, China, India, Pakistan, Turkey, Egypt and Israel to mention a few, and closer home Nigeria and Kenya, the Armed Forces through activities of their Research and Development Directorates, have built factories to produce identifiable items of strategic interest in the country. The Defence Industries of these countries manufacture virtually all the logistics needed for their Armed Forces and export the excess.

Although DIHOC was established almost a decade ago as a holding company, it was not until 2019, during the first term of the Akufo Addo led NPP government, that my Minister, together with the Military High Command decided to implement most of the planned thematic divisions under the Holding Company. At the inauguration of the Board chaired by my predecessor, Hon Maj Derek Oduro (Rtd), my minister tasked the Board to explore the possibility of collaborating with private investors, both national and international. I am glad to note that the previous Board heeded to my Minister’s directives and worked tirelessly to establish most of the joint venture companies we are about outdooring today.
Your Excellency, distinguished invited quests, ladies and gentlemen, the Ministry of Defence is the 100% shareholder of DIHOC , which it holds in trust and for the benefit of the GAF. DIHOC is structured in such a way that the Government, MOD and GAF leadership do not have direct involvement in the day-to-day operations of the organization. Instead, a Board of Directors, is responsible for its operations, while a management Team headed by a CEO is assigned with the day to day running of the Company.

The DIHOC Board of Directors is constituted as bellow:
•    The Hon Deputy Minister for Defence    -    Chairman.
•    The Chief of the Defence Staff        -    Member.
•    Director General Defence Industries Department-    Member.
•    Chief Director Ministry of Defence        -    Member.
•    Director Veterans Affairs (MOD)            -    Member.
•    Mr Samuel Anomah Kwao (Osprey International)-Member.
•    Director General Legal Services            -    Member/Sec

By dint of good leadership and strategic guidance, DIHOC, today can boast of 13 joint venture companies focusing on every aspect of the economic life of our country and dealing in both defence and non defence related products and services. On behalf of my Board, I would like to say a big thank you to my predecessor who is here with us today and his team, most of whom I am privileged to have on my team, for the great job done.  

The structure of the military industrial complex ensures the independence of the individual joint venture companies as each of the companies have their own Boards of Directors and Management Teams. This does not only ensure that the companies are effectively managed, but also serves as a guarantee and a confidence builder for the private investors who have bought into the military industrial complex agenda.

Your Excellency, as we boast in our achievement so far, my Board and I see this as the beginning of a bigger challenge, that is to live the dream which has become a reality. And we pledge our loyalty, support and commitment towards making DIHOC a preferred partner and a real industrial giant contributing meaningfully to the socio economic growth of our dear country.

Permit me to end my remarks by thanking my Minister who has shown huge interest in the operations of DIHOC. The office of the COS at the Presidency for taking keen interest in the activities of DIHOC. The support from the Military High Command towards DIHOC has been tremendous.

Your Excellency, like every start-up company, the joint venture companies under the Military Industrial Complex would require all the needed support from most of the stakeholders who are present in this hall to witness this all important ceremony. In this regard, we would be more than happy if Government would extend all the tax relieve holidays and incentives to the industrial complex. Policy directives that would ensure that MDAs patronize products and services from the industrial complex would be in the right direction your Excellency.  
Your Excellency, distinguished invited guest, ladies and gentlemen thank you very much for your time.