Subin Industrial Plantation Limited owes more than GH¢2 billion

Accra, June 23, GNA - Ms Hannah Tetteh, Minister of Trade and Industry on Tuesday disclosed that the indebtedness of the Subin Industrial Plantation Limited (SIPL) is close to GH¢3 billion.

She said the liabilities covered indebtedness to various companies, bank overdrafts, Provident Fund and staff severance awards totalling GH¢ 2, 915,010.80. Ms Tetteh who made the disclosure while answering questions in Parliament said the company was established in 1985 by government and fiv e financial institutions to produce fibrous raw materials.

"A re-appraisal of the project showed that the land area earmarked f or the cultivation of the raw material would not be able to sustain the project," she said. The company according to her had to focus on saw milling using overgrown gmelia arbona trees which could not sustain the company financially. "The company therefore continued to experience financial problems un til it was eventually placed on the divestiture list." Ms Tetteh said SIPL's present assets included an existing plantation of 5,000 hectares of industrial raw material resources, sites for nurseries with water dam, industrial estate, comprising office blocks, staff bungalows, clinic, schools, 13,000 hectares of forest reverse saw mill an d kiln.

She said currently there are 67 caretaker workers engaged out of the

140 work force to maintain the company and make it attractive to investor s. The company was put on the divestiture list in 2002 but no investor had shown interest until 2008 when it was re-advertised. Other companies on the divestiture list include Aboso Glass Factory Limited and Bonsa Tyre Company.