The Minister for Trade and Industry, Mr. Alan John Kwadwo Kyerematen, has hinted that the Ministry is seeking legal advice on the next line of action to take, to restore the Ayensu Starch Company Limited (ASCO) to government ownership.
Mr. Kyerematen indicated that in light of the poor control of the Company, the Ministry through the Transaction Advisers informed the company of its decision, to take over the Ayensu Starch Company in a letter dated December 20, 2018.
Mr. Kyerematen revealed that the Company however in a letter dated January 14, 2019, indicated its refusal to hand over possession to the Ministry although the Company has abandoned the factory, putting the plant and machinery at risk.
Mr. Kyerematen explained that as part of efforts to sustain the operations of the Ayensu Starch factory, the Company entered into a two-year off-taker agreement with Guinness Ghana Brewery Limited (GGBL), to supply 14,000 metric tonnes of industrial starch until June, 2015.
Speaking at the Plenary, Mr. Kyerematen indicated that under the agreement, Guinness Ghana Limited provided the company with financial and technical support.
He added that the government in August 2016 offered 70 percent of its shares in the Ayensu Starch Company to Tiberias Company Limited, a company affiliated to the Jospong Group.
In explaining further, Mr. Kyerematen pointed out that Tiberias Company accepted and made an initial payment of US$2,269,500, representing 51 percent of its US$4,450,000 obligation as the Purchaser, and has made no further payment thereafter.
The Trade and Industry Minister, however, informed the House that the Company has refused to fulfill its obligations under the agreement and has defaulted on all other revised payment schedules.
Answering a question on the floor on the steps the Trade and Industry Minister is taking to revamp the operations of the Ayensu Starch Factory, Mr. Kyerematen disclosed that the company has abandoned the factory and left the workers idle, without any form of compensation.
Mr. Kyerematen concluded that in anticipation of a smooth takeover by the government, the Ministry is negotiating a financial package under the One District One Factory (lDlF) Programme, to resuscitate the company to ensure that it achieves its intended purpose of job creation, reducing rural-urban migration and producing an important raw material for the food and beverage sectors and other related industries.
The establishment of the Ayensu Starch Company
The Ayensu Starch Company Limited (ASCO), was established in 2002 with the capacity to process over 22,000 metric tonnes of cassava starch per annum.
To meet its objective, the Company assisted various farmer-based organisations within its catchment area to produce cassava by providing them with resources, both financial and technical, to ensure a sustainable supply of its raw material needs.
Source: GhanaJustice/S.Ayisi
