Some 1.4 billion cedis loan disbursed to 14 salt producers

Some 1.4 billion cedis out of the 3.2 billion cedis loan facility the government gave the Elmina Small Scale Salt Producers Association (ESPA) as part of "Government Special Assisted Projects" has been disbursed to 14 members of the association.

Mr Foster Forson, chairman of the four-member procurement committee set up by the Mineral's Commission to oversee to the disbursement of the loan, told the Ghana News Agency (GNA) in an interview on Monday, that it would be an indictment on the region and the association in particular if the programme failed.

''This is the first time the association has received an assistance of this nature and therefore it is a test case for the region.''

"To avoid a repetition of previous experiences in the case of the Poverty Alleviation Fund (PAF) when loans were diverted for other purposes other than what they were intended for, stringent measures have been put in place to ensure that the monies are used for the purpose for which they were disbursed", he said.

Mr Forson said the measures would also ensure full recovery of the loan which is payable within a maximum of four years at an interest rate of 20 per cent per annum.

He said for that purpose his committee had bought large quantity of materials such as stone, sand, cement and water pump machines needed for the excavation and rehabilitation works of the "crystallisation pan" for members.

Mr Forson urged the 32 members who are yet to benefit from the loan to excise restraint and wait for the rains to subside to avoid a situation where the downpour would disrupt their work.

He said each member received between five and 120 million cedis worth of materials and cash for excavation, construction and expansion works.

Mr Forson said he was not happy that most members had wanted the loans to be credited to their accounts for them to purchase the materials themselves, a practice that was not in accordance with the guidelines and agreement of the loan.

He explained that the items being distributed by the committee were bought on discount from the factories to save cost and that the remaining members would be given their consignments soon.

Mr Forson, who is also the executive secretary of the Central Region Development Commission, said after supplying members with the materials the committee took care of excavation and labour.

Chairman of ESPA, Mr. Nii Okai Tagoe, said the aggrieved members must be assured that "nobody can touch that money."

''We have put in place enough checks and as the assistance is the first of its kind the association will ensure that no one sabotages the project,'' he said.