NDC Reacts on Quality Grains

The Ghana Palaver carries that the NDC has, in a statement, noted the decision of the NPP to take over the Quality Grains Company Limited and its rice operations at Aveyime in the Volta Region, but expresses extreme surprise at the Government's attempts to impute impropriety to officials of the former NDC Administration.

The party said it finds as particularly unfortunate, the allegations and insinuations intended to embarrass, harass and bring into disrepute ex-President J.J. Rawlings, ex-Vice President Professor Atta-Mills and the other former Senior Ministers and officials of the NDC Government.

"Far from causing serious losses to the State as alleged by Nana Akufo Addo, the Attorney General, at his Press Conference held on 25th April 2001, former President Rawlings and former Vice President Atta -Mills did everything possible to assist and expedite the production of rice by Quality Grain Company Limited with the objective of reducing the country's heavy dependence on imported rice and to create employment opportunities for the people of Aveyime-Vume area around the Lower Volta."

It said regarding the legality of the transaction, the NDC Government, through Cabinet, secured Parliamentary approval for a guarantee to enable the company procure a US$7 million loan from the US Exim Bank to undertake the project. However, an augmented US$12 million due to land acquisition and settlement problems, was considered as supplementary to the original loan requiring no fresh Parliamentary approval. "This was also done to cut on start-up time".

Agriculture is a risky venture, therefore care must be taken to safeguard the investor and this is what the NDC did, it pointed out, explaining that against the possibility of non-performance by Quality Grains, the NDC Government ensured that the company executed a deed of indemnity and a floating charge on its assets in favour of the Government of Ghana, acting through the Ministry of Finance.

"It is this indemnity clause in the agreement intended to safeguard the interest of Ghana, which the NPP Government is today taking advantage of to take over the Company and its assets, and yet creating the impression that it is correcting a wrong of the NDC Government," the statement said.