Mills' Pal Sweats Over $12bn Debt

Austerity measures put in place by President Millls to put the economy back on track, appears to have suffered a jolt, following the discovery that Mr. John Owusu Amankrah, Managing Director of Jowak Sawn Mills Limited, who was recently appointed to the board of the Forestry Commission (FC) by the president, owes the same institution he is supposed to superintend ¢12 billion. The debt is said to have brought the FC’s finances to its knees, but all efforts to get the board member to settle his indebtedness have proved futile.

Mr. John Owusu Amankrah admitted that his company owes the FC, but denied the ¢12b figure being bandied around.

He claims the FC also owes him ¢14 billion, which has not been settled. This reporter gathered that following the refusal of Jowak to settle the indebtedness, the Chief Executive officer (CEO) of the FC, Prof. Nii Ashie Kotey, wrote a strongly-worded letter dated September 2, 2007 to the former, asking him to pay the money or face the consequences.

The letter, which was under the caption ‘Demand notice/legal action,’ stated “Your Company was requested to fulfill some requirements, as well as pay fully for the volume of teak trees to be harvested. Up to date, your company has an outstanding balance of GH¢1,243,047.46 to be paid, which contravenes the conditions under which the permit was granted.

“Your company has been given up to September 15, 2008 to make all its financial obligations to the Forestry Commission without fail. From September 15, 2008, the Commission will resort to the following against your company - Stop your operations, publish your company’s name in the print and electronic media as a defaulter, and therefore not of good standing, and resort to legal action against your company.”

The Chronicle learnt that Jowak could not meet the above demand issued to the company by the CEO before the New Patriotic Patrty (NPP) lost power.

When National Democratic Congress (NDC) took over, they also gave the company another period to settle the debt, which expired on September 25th this year, but the company has still failed to pay the money into government chest.

Surprisingly, the powers that be, have gone ahead to offer another concession to the company to harvest teak trees.

In a letter dated July 6th 2009, Mr. F. S. Amoah. Director of Plantations, directed some of the zonal plantation managers in the Ashanti and Brong Ahafo regions to provide uninterrupted services to the company to harvest logs that fall within their jurisdictions. “You are hereby directed to allow the company to operate, and provide them with uninterrupted services,” the letter stated.

This development is said to have incurred the displeasure of some of the board members, who think the decision infringes upon the transparency and accountability being preached by the government.

Mr. John Owusu Amankrah told The Chtronicle, when he was contactedthat he owes the FC ¢9 billion and not ¢12 billion. According to him, the debt emanated from the auction of forest reserves to him at the cost of ¢60 billion, which has paid, leaving a balance of ¢9 billion.

He also claimed the FC also owes him ¢14 billion in loans he granted the commission. According to him, somewhere in 2007, the FC approached him for a loan. As part of the agreement, the then sector Minister, Cecilia Obeng Dapaah, gave him concession to harvest trees to cover the debt.

He however regretted that an injuction had been placed on the forest that was allocated to him, so he has not been able to harvest the trees to recoup his money.