Wahome Steel not happy with partner

Accra, April 27, GNA - Wahome Steel Limited (WSL), a Tema based firm, on Thursday registered it's displeasure over the operations of Intrinsic Resources Limited (IRL), a foreign firm, which took over its leased recycling plant for production.

WSL said it had become abundantly clear that IRL failed to bring any foreign direct investment into the country during its three-year operation and challenged IRL to produce document from the Bank of Ghana or the Ghana Investment Promotion Centre to show monies brought into the country.

Speaking at a press conference in Accra, Mr Isaac Yeboah, Chief Executive Officer, said WSL would not renew the lease agreement between the two because the IRL had allegedly engaged in "massive money laundering activities and effected huge net foreign exchange outflows much to the detriment of the Ghanaian economy".

WSL, incorporated in Ghana in 1989, recycles ferrous scrap into billets from which steel products including iron rods; wire nails and angle bars were manufactured for the construction industry.

Currently SSNIT holds more than 90 per cent equity stake in WSL. Mr Yeboah explained that the WSL refused to renew the agreement since the IRL did not invest in the Company and did not provide any financial or production information as required by the agreement. He said IRL defaulted in paying for the use of WSL plant even when they were producing and making money.

In addition Mr Yeboah said IRL "fraudulently misled Social Security and National Insurance Trust (SSNIT), which holds 90 per cent equity stake in WSL on its financial standing with the Bank of America". He said though the agreement between IRL and WSL expired on December 13, 2004, IRL owned WSL 733,691 dollars.

"With the exception of the sum of three billion cedis paid by IRL through the Serious Fraud Office no further rental payment had been made."

On behalf of the Board and Management of WSL, Mr Yeboah said the Company would continue to operate, meet its statutory obligation and generate income within the country. According to him, WSL was a viable entity and told the workers that they would not be laid off.

On December 14, 2001, WSL and IRL entered into an agreement to lease WSL steel plant for a term of three years. According to the agreement IRL was to pay rent every year. 26 April 06