Komenda Sugar Company andalbatross - K.T Hammond
Kobina Trade and Industry Minister Tahir Hammond said the Komenda sugar factory has become an "albatross" in the country's throat.
According to him, apart from the failure of the factory, the company started the construction of the factory with a request for 7.5 million dollars, although the previous government spent 34.5 million dollars for it. KT Hammond said: "This candy from Komeda is an albatross of…
The Minister said this in Parliament on Thursday, July 20, 2023, to answer a questionon the subject, on behalf of Bole/Bamboi MP, Yussif Sulemana. Tamale NorthMember of Parliament, Alhassan Suhuyini asked on his behalf, the main question was why the contract with Park Agrotech Ghana Limited, the investor in the company, was cancelled.
The Cabinet approved thecompany in June 2019 as astrategic investor for Komenda Sugar Development Company Limited. There is no agreement
In his response, the Minister said that no agreement between the two wasterminated from the beginning.
He explained that there were certain requirements that the company could not meet, and therefore could not enter into an agreement with the government. "Mr. President,there has been a long time to conclude negotiations between the lawyers of Park Agrotech and the business advisor PWC [Price Water House], regarding the previous conditions of the lease agreement, under the agreement between Park Agrotech and Komenda Sugar Development Company begins," said KT.
He said that COVID-19 hasdelayed the company from bringing in its overseas partners to get the machines and makethe necessary repairs to startproduction. He added that the company, after successfullyworking with the business advisor in various situations, ordered that August 31, 2021 will be the final deadline, which the investor cannot fulfill.
According to him, the instruction is that if there is no agreement at that time, "the business process should stop.And the management of the company returned to the board of directors. As of the close of business on August 31, 2021, no agreement has been reached between PWC and Park Agrotech and the businessprocess has terminated.
Pandora's Box
The Minister, after the written response, had an observation by the MP for Bole who,dates. He asked why the government called the leaders and gave them the office "that they arethe ones who are coming to start work", if there is no agreement.
In his response, the Ministersaid that given the state of the company, "obviously" leadersand people will be interested to know that the company iscoming to work in the company.He warned his colleagues on the other side against the decisionto blame the government in power, saying that taking thistangent could open a Pandora's box and "you will be relieved."
Responding to subsequent questions, the minister gave ahistory of the company, saying that the NDC government at the time, in an effort to show the world that the company was working, "a lot of things happened quickly".
He said that "when other engineers went there, it was found that the structure of the factory was so bad that no construction work could be done".
Paid
The Member of Parliament for Bole/Bamboi asked another follow-up question whether the ruling government had received the reforms, rehabilitation and compensation, which the minister said, but the minister said he had no information about this.
“I remember the company that started building the company came back asking for about $7.5 million. So let me check if a little money was spent. But I have no information now,” he said. The lawmaker then questioned the economic justification for importing processed sugar to be processed by the Komenda sugar factory.
In his response, the Ministersaid that the company does not import sugar in small quantities, adding that the company will produce sugar from start to finish to meet the imported sugar. "The company does not import any of these things. Komenda Sugar Company has done a complete restructuring, reorganizationand restructuring to ensure that the company will use its production capacity to the fullest, in terms of crushing sugar cane and refining raw sugar to replace imports," he said.