We remain resolute - GMCL assures stakeholders, employees after shutdown

Ghana Manganese Company limited (GMCL) has defused any pending panic situation regarding their shutdown by assuring stakeholders including employees of their resoluteness.

In a press release copied to Ghanaweb, management of the firm stated that they are ready to cooperate with the mandated government institutions to bring the issue to amicable end even though the latter did not consult them before announcing the indefinite closure of the company.

On Monday August 5 2019, The Ministry of Lands and Resources announced an indefinite close down the Ghana Manganese Company Limited (GMCL) citing huge loses to the state for the period of 2010 – 2017.

The decision, according to the sector Minister, Kwaku Asomah-Cheremeh, follows the apparent lack of transparency in the operations of some mining companies in Ghana which has been a source of “serious concern” to the Ministry.

Hence the Ministry decided on an audit of the company to ascertain the cause of loses.

Findings from the audit were based on Fair Pricing Model utilizing best business practices, open source data as well as information obtained from verifiable business intelligence centers.

Results indicated that an additional revenue residing offshore from 2010 to 2017 with no transfer pricing audit performed prior to 2017 recorded loses of a whopping $259m.

Further, loss of dividends within the period amounted to $6.1m while additional corporate tax due was $79m.

Aside the findings of the audit report, Cheremeh added that in late 2014 and 2015, just before the sales agreement reached between Manganese Trading Limited (MTL) as the sole off-taker of the total volume of the manganese produced by GMCL, there was a manipulation of the sales in order to stockpile ore prior to adjusting the price downwards by $0.65 for every DMTU.

Calculated loss due to this price per production manipulation was conservatively estimated to be $3.6m.

GMCL has however refuted claims that the company has recorded over $200m losses to the state for the period of 2010 – 2017 as stated by the sector minister, maintaining that the said figure did not tally with that of Ghana Revenue Authority.

“The figures put out there by the Minister in his press conference are therefore inconsistent with that of GRA which is the mandated institution when it comes to tax issues in the country”

Below is the full statement by the GMCL