Trade and Industry Minister, Alan John Kyeremanten has disclosed government’s intention to take over operations of the ‘abandoned’ Ayensu Starch Company (ASCO).
The change of ownership to government, the Minister said, is as a result of failure on the part of shareholding company, Tiberias Company, to make further payment of its $4,450,000 obligation as the Purchaser.
Government, in August 2016 offered 70% off its shares in the Starch Company to Tiberias Company Limited, a company affiliated to the Jospong Group.
Tiberias Company accepted and made an initial payment payment of $2,269,500 representing 51% of its $4,450,000 obligation and the Purchaser and has made no further payment thereafter.
During a sitting in Parliament today, Alan revealed that, “The Company failed or refused to fulfil its obligations under the agreement and has defaulted on all other revised payment schedules. Furthermore, the company has abandoned the company and left the workers idle and without compensation.”
“In the light of these and other developments, the Ministry through the Transaction Advisors informed the comoany of its decision to take over the Ayensu Starch Company in a letter dated 20th December, 2018. The Company however in a letter dated 14th January 2019 indicated its refusal to hand over possession to the Ministry although the Company has abandoned the factory putting the plant and machinery at risk.”
He disclosed that the Trade Ministry is seeking legal advice on the next line of action to take to restore the Company to government ownership.
In anticipation of a smooth takeover by government, Alan Kyeremanten noted that the Ministry is negotiating a financial package under One District One Factory (1D1F) Programme to resuscitate the company.
According to him, this is “to ensure that it achieves its intended purpose of job creation, reducing rural-urban migration and producing an important raw material for the food and beverage sectors and other related industries.”
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