General News Sat, 2 Mar 2019

Government set to battle Jospong Group in court

Government is set to battle Jospong Company in court to forcefully take over the Ayensu Starch Company Limited after it failed to honor its contractual obligations.

The Mahama led administration offered 70% of its shares in the Ayensu Starch Company to Tiberias Company Limited, a company affiliated to the Jospong Group.

Tiberias Company accepted the offer and made an initial payment of 2.2 million dollars representing 51% of its 4.4 million dollars obligation as the purchaser but made no further payment thereafter.

Answering to a question in Parliament by the MP for Awutu-Senya West, George Andah on the status of the company, the Trade and Industry Minister, Alan Kyeremanteng explained the company has failed to fulfill its obligations under the agreement and has defaulted on all other revised payment schedules.

Alan added that the company has abandoned the factory and left the workers idle without compensation.

“In the light of these and many developments, the ministry informed the company of its intention to take over but the company in a letter dated January 14, 2019 stated it would not release the concession for government to take over so we are yet to seek legal advice on the next action to take.”

Source: adomonline.com
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