Allotey Jacobs accuses GHACEM

ALLOTEY JACOBS ACCUSES GHACEM

…Company connives with dealers to cheat users and sabotage government

By Emmenuel Opare Djan,Daily Democrat

Mr. Allotey Jacobs, a member of the ruling National Democratic Congress (NDC)

communication team has accused Ghacem Company, manufacturers of Ghacemsuper

rapid and extra cement of conniving with dealers to sell the products at

exorbitant prices.

According to him, this is a deliberate attempt by Ghacem and dealers to sabotage

and derail the government’s socio- economic gains achieved under the better

Ghana agenda. He questioned the sincerity of the manufacturer to ensure that

users are paying the right price for the product at designated locations and not

cheated by dealers.

He noted that government’s effort towards massive infrastructure developments

can suffer a setback if cement prices keep on escalating beyond budget levels

because it is a major input in almost all projects.

The only possible options that will confront contractors working on government

projects will be to do shoddy works or abandon the projects half way because of

the frequent price hikes in Ghacem cement. He stressed that the country will be

the major loser in this unpatriotic and anti-government agenda.

In an interview, Mr. Allotey tasked the relevant government agencies to

institute measures to halt the unnecessary cement price hikes and advised Ghacem

not to create artificial shortages and turn round to increase prices.

He entreated management of Ghacem to ensure that prices of the company’s

products are not increased any time they experienced power outages because they

are active partners in the nation’s economic development

The current ex-factory price for 50kg bag of cement (super rapid) is GH¢10.35

while Ghancem extra goes for GH¢ 11.42. These are expected to sell at prices

ranging between GH¢11.40 in Accra to GH¢14.30 in Wa per the official recommended

end-user price list downloaded from Ghacem website on Thursday 30th June, 2011.

However, the products are sold over and above the recommended prices across the

country with dealers using shortage of the products to justify the high prices

but could not confirm or deny whether the ex-factory prices have been changed.

Users started buying Ghacem cements at exorbitant prices after the company’s

production process suffered a 3-day intermittent power supply in June.

Daily Democrat investigations revealed that prices across the country have

changed since mid-May moving above GH¢11.50.

In 2008, Ghacem raised its ex factory price from GH¢8.05 to GH¢8.74,

representing 70Gp difference highest throughout the 41-year history of the

company.Ghacem was founded by the Government of Ghanain collaboration

with Norcem AS of Norway on August 30, 1967.

In 1993, the Ghana Government sold 35 % of its shares to Scancem (formerly

Norcem). Scancem as a result had 59.5 %, leaving it with 40 % and 0.5 % going to

a local investor. In 1997, the Ghana Government sold 5 % of its 40 %

shareholding to the workers of the company.

The remaining 35 % shares of Ghana Government was sold to Scancem in 1999 and at

present Scancem has 93.1% shares in the company, Ghana Government has 5% shares

while 1.9% is owned by Dr. J. A. Addison, a local investor.

In 1999, Heidelberg Cement took over Scancem, thus making it a subsidiary.