Ghana Cotton Company Collapses

Northernghana.com's investigations has uncovered that activities of the Ghana Cotton Company have grounded because farmers have declined to supply it with seed cotton. This is due to management's inability to pay for earlier supplies running into millions of Ghana cedis.

A source close to management informed northernghana.com that Volta River Authority disconnected the company's power supply in demand of full payment of about GH ¢50,000 debt.

Apart from this debt, the Northern Central division of the company owes fuel suppliers a sum of GH ¢90,000 and this situation has rendered the few obsolete vehicles useless.

Meanwhile frustrated workers of the Ghana Cotton Company Limited have given government one-week ultimatum to pay their three-months accumulated salaries and other entitlements due them.

The workers thereby threatened to go on an indefinite strike if their grievances were not resolved within the one-week ultimatum. The workers have not received their salaries since November 2009 despite Kwesi Ahoi, the Minister of Agric‘s assurance to settle their arrears during his last working visit to the company in April 2009 in Tamale.

Speaking to northrnghana.com on grounds of anonymity, the frustrated workers in their hundreds complained that the situation had worsened their economic situation.

They accused the company’s management of having misplaced priorities and alleged that at the peak of the company’s financial crisis, the decision making body wasted GH ¢14000.7 on renovation works carried on the Public Relation Officer’s residence.

The aggrieved workers also slammed management over salary disparities and alleged that the company’s Public Relations Officer who was engaged on contract receives GH ¢10,000.8 a month whereas the labourers and drivers are pegged between GH ¢100 and GH ¢150.

According to our sources, the last stimulus package received by the company was given by the immediate passed Kufuor-led government in 2008 which was GH ¢2,600.

The Ghana Cotton Company Limited formerly Cotton Development Board, was established in the 1960’s, is the only surviving company in the country.

The company operates in the three regions of Ghana with offices each in Tamale of the Northern region, Bolgatanga in the Upper East region and Tumu in the Upper West Region.

Over the past decade, the company has experienced considerable decline in production as well as gross mismanagement and these factors have contributed to its near collapse.