Alhaji Collins Dauda, Minister of Transport, has said government would soon adopt a new investment strategic plan that would transform the PSC Tema Shipyard Limited to meet the nation’s strategic objectives.
Making the disclosure at the signing of the sales and purchase agreement at the company’s board room in Tema, between government and Penang, a Malaysian Company with 60 per cent majority shares in PSC Tema Shipyard, Alhaji Dauda explained that with the conclusion of the agreement and the transfer of Penang’s majority shares to government, government now becomes the sole shareholder of the company.
He said on May 11, on the advice of the government’s negotiating team, Cabinet gave approval for an amount of 6.36 million dollars to be paid to Penang, with the breakdown as 5.120 million dollars to cover the 60 per cent shares, and another 1.240 million dollars in respect of discounted inter-company payables.
Recounting the historical background on PSC’s divestiture and joint venture agreement, Alhaji Dauda said in 1996, government divested 60 per cent of its interest in PSC, as part of measures to improve the standard of operations in the shipyard.
He said the joint venture agreement with Penang on November 8, 1996, came about as a result of government’s aim to acquire a strategic partner to help transform the shipyard into a modern and well-equipped facility.
Penang, he said, was charged to rehabilitate the shipyard and procure funding to meet costs of the rehabilitation and the completion of the refurbishment of the company.
Alhaji Dauda expressed the regret that 13 years after the agreement, this laudable vision had not been achieved and neither had the goals of the joint venture agreement been met.
He said as a result, a Committee of Enquiry was set up in 2009 to investigate the operations of PSC and make recommendations for its performance improvement.
Alhaji Dauda said upon the Committee’s recommendation of the company’s strategic importance, government initiated a process that had culminated in the conclusion of arrangements for the transfer of the ownership of the company to the government and people of Ghana.
The Minister said during the negotiations, government took into consideration the cordial bond of relationship between Ghana and Malaysia, which dates back to Ghana’s independence, and lauded the Government and people of Malaysia for their high sense of maturity and patience.
He gave the assurance that with the exploration and production of oil and gas, “the new era has created opportunities, particularly in general engineering services, fabrication for offshore and repair works for oil drilling rigs, swamp barges and works associated with the oil and gas industry for the Shipyard.”
These economic opportunities, he said, have enhanced the shipyard’s economic viability, which would naturally accelerate the Better Ghana Agenda.
Mr. Seth Kugblenu, Executive Director of PSC Tema Shipyard, said after several years of the company being in the hands of expatriates, Ghanaians could now boast of their sole ownership.
This he said, would usher in a new space to motivate workers of the company to give of their best to ensure its accelerated growth.
Admiral Rawlan Mohammed Ali (rtd), Director of Boustead Heavy Industries Corporation, initialled for Penang at the short but impressive ceremony witnessed by Madam Dzifa Aku Attivor, Deputy Minister of Transport and members of the negotiating teams on both sides.**
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