Alan John Kwadwo Kyerematen, the Trade and Industry minister-nominee has explained why the Ayensu Starch factory in the Central Region has not been in operation.
Taking his turn at the Appointments Committee vetting of Ministerial nominees on Friday, February 26, Kyerematen explained that there is litigation over the factory between the Government of Ghana and Tiberias Company Limited, a subsidiary of Jospong Group.
This, he indicated, has made it very difficult for the company to operate.
Alan Kyeremanten explained that in August 2015, the Government of Ghana offered 70 per cent shares of the Ayensu Starch Factory to Tiberias Company Limited at a bid price of $4,450,000. As a condition, the 70% shareholder, Tiberias Company Limited, was to pay 50% of the amount to which they complied.
He disclosed that Tiberias made an initial payment of $269,000, and there was a requirement in the Sales and Purchase agreement for Zoomlion, which is another subsidiary of the Jospong Group, to complete the payment of the outstanding money in order to have full control of the 70% shares. However, Zoomlion failed to do so even though the factory was handed over to it.
Alan Kyerematen further disclosed that when the Akufo-Addo administration assumed office in 2017, the factory was no longer operational and Tiberias Company Limited had still not paid the balance of 20% to have full ownership of the factory.
“So, we engaged PricewaterhouseCoopers, a financial advisor, to see how they can have an amicable resolution. However, the money has still not been paid,” he said.
The nominee noted that per the provisions of the Sales and Purchase agreement, Tiberias was supposed to pay back a certain percentage of the shares to the Government of Ghana.
The Government of Ghana, Alan Kyerematen explained, subsequently became the majority shareholder and found out that Tiberias Company Limited had not paid its workers for some time. This compelled the government, in its capacity as majority shareholder, to pay the outstanding salaries from September 2017 to December 2019, in order to prevent chaos.
Tiberias Company Limited, he added, subsequently abandoned the factory. The government then requested security to ensure that there was no undue interference with the factory property.
Tiberias Company Limited, however, filed a writ in court praying for an injunction against the Government of Ghana.
The successful injunction has subsequently prevented the company from functioning.
Alan Kyerematen believes that once the court process is over, the Government of Ghana will find a lasting solution to the problem.
