Joseph Siaw Agyepong
The Jospong Group of Companies (JGC) has expressed dissatisfaction about the manner in which government has taken over the Akwatia Diamond mine.
According to Jospong, the takeover was “hostile and illegal.
The Group made this known in a press statement issued by its Communications Directorate on September 23, 2019, to set the records straight.
Government on Friday, September 20, 2019, abrogated the contract of Great Consolidated Diamonds Ghana Limited (GCDGL) by the Divestiture Implementation Committee (DIC) due to the GCDGL’s alleged inability to meet the contract terms.
But the Jospong Group of Companies said in its statement that “…the facts contained in the publication are not accurate and are a misrepresentation of the terms of the agreement executed between the parties.”
Background
It said JGC took ownership of GCDGL from government’s Divestiture Implementation Committee (DIC) in the year 2011.
At the time of acquisition, it stated, the company had been closed down with its premises in a dilapidated state with obsolete machinery and equipment.
Upon the assumption of ownership of the mine in 2011, and immediately after the execution of the Agreement between DIC and GCDGL, the statement revealed that substantial investments were made in an attempt to revive the mine and make it commercially viable.
Subsequently, it added, GCDGL has also focused on meeting the necessary regulatory, engineering and restructuring works necessary to achieve this objective.
“We wish to state that all due processes, guidelines and regulations provided by DIC to regulate the said transaction were duly followed,” according to the statement.
In addressing the issues raised by the State, it noted that “following the acquisition of the mine, GCDGL and the JGC have made several attempts to make the mine commercially viable, albeit not yet entirely successful.”
“This led to series of communication with the DIC with the aim of reaching a mutually satisfactory direction on how to proceed with same,” it said.
Despite these attempts, it noted, the Government acting through DIC by a letter dated 9th April 2019 purported to abrogate the agreement between the parties without following due process. GCDGL through their lawyers drew the attention of DIC’s lawyers to the illegality of the intended action of the DIC, and proceeded to issue a writ of Summons and an accompanying Statement of Claim to protect the interest of the company.
” It is therefore unfortunate that Government, after filing a Statement of Defense in the aforementioned suit, proceeded to take over the management of the company without recourse to the law and tenets of good governance,” it added.
“Payment of Consideration-
GCDGL, has since the acquisition made payments on account, and through its principal shareholder been in dialogue with Government with the aim of settling the outstanding liability by way of a set-off from Government’s liability to the shareholder. Government is yet to respond to this proposal despite repeated overtures.”
BY Melvin Tarlue