Fifteen State Owned Enterprises To Be Divested

Government is on track to raise nearly $50 million through divestiture receipts by the end of the year. Fifteen state owned enterprises have been listed for divestiture through different modalities to raise the needed capital to support developmental projects.

The companies that government will sheet off its interest are Ghana Consolidated Diamond, Ghana Oil Palm Development Corporation, Benso Oil Palm Plantation, Twifo Oil Palm Plantation, Tema Steel Company Ltd and PSC Tema Shipyard.

The rest are GAFCO, Ghana Oil Company Limited (GOIL), Coca-Cola Bottling Company, Ghana Telecom, Westel Ghana Ltd., Ghana Textile Printing Company, Juapong Textile Ltd and Barclays Bank.

Government has already disposed of Mim Timber Company Ltd. The Executive Secretary of the Divestiture Implementation Committee (DIC), Mr Benson Poku-Agyei, did not give details on the modalities for each of the companies to be divested but stated that the DIC has put in place measures for smooth and transparent off loading of government shares in the companies. He however admitted that companies that might pose a bit of a problem are those that government holds 100 per cent shares.

The companies in which government holds 100 per cent share are Ghana Consolidated Diamonds Ltd and Ghana Oil (GOIL). Some of the companies to be divested are reported to incurred heavy liabilities such as salary arrears, tax obligations, bank loans and utility bills.

Mr. Poku Agyei said most of these companies are sunk in heavy liabilities such as salary arrears, tax obligations, bank loans and utility bills. In his budget statement, Finance Minister, Yaw Osafo Maafo, said government intends to raise $50 million through divestiture receipts by the end of the year for development projects.