Alan Kyeremanten
The current Akufo-Addo administration is seeking legal advice to take back the Bawjiase Ayensu Starch Company from Tiberias Company Limited, which is affiliated to Jospong Group of Companies, after Tiberias failed to pay almost half of the $4,450,000 the previous government sold the starch company for in August 2016.
The previous National Democratic Congress (NDC) government decided to offer 70 per cent of its shares in the company to Tiberias Company Limited.
After taking over the company, Tiberias paid $2,269,5000 out of the total amount.
The Minister for Trade and Industry, Alan Kwadwo Kyerematen, who disclosed this in Parliament yesterday, said Tiberias refused to fulfill its obligations under the takeover agreement and defaulted on all other payment schedules.
The minister, who was answering a question on the status of the company posed by George Andah, the Member of Parliament (MP) for Awutu-Senya West, where the company is located, told Parliament that Tiberias had abandoned the factory, putting the plant and machinery at risk and also leaving workers idle.
He said in the light of the development and in anticipation of a smooth takeover of the factory by the government, the ministry is negotiating a financial package under the “One District, One Factory” policy of the government to resuscitate the company to ensure that it achieves its intended purpose of creating jobs, reducing rural-urban migration and producing an important raw material for the food and beverage sectors and other related industries.
He explained that the ministry, through the Transaction Advisors, wrote a letter dated December 20, 2018 to inform Jospong of government’s decision to take over the Ayensu Starch Company.
The Minister said that the company later informed government of its decision not to hand over the starch company.
He explained that government is seeking the necessary legal advice to take over the company for the benefit of Ghanaians, especially residents of the area, due to the refusal of Jospong.
By Thomas Fosu Jnr