$22.6m left unpaid for 5 divested state firms

General News of Wednesday, 4 March 2015

Source: Starrfmonline.com

Dollars Stash

Between 2009 and 2013, the Divestiture Implementation Committee divested – on credit – five state-owned companies for a total of $32.4 million but only $9.8 million of that money has been paid.

A total of $22.6 million remains unpaid.

The divested companies include the Tema Printing Press which was sold at a purchase price of $3 million. About $1.1 million was paid, leaving a balance of $1.9 million.

The Ghana Consolidated Diamonds Company is another company which was sold for $17 million, of which $3.2 million was paid, leaving a balance of $13.8 million.

Also, the Subri Industrial Plantation Limited was sold for $10 million in 2012 but only half of the purchase price was paid.

Similarly, only $70,000 of $700,000 for which GIHOC Footwear Company Limited was divested in 2012 to a joint venture, has been paid.

The last public enterprise on this list is the GAMA Film Company Limited which was divested in 2013 for a total of Ghc6 million ($1.7 million) with only Ghc1.6 million ($457,142) paid, leaving an outstanding balance of Ghc4.4 million ($1.3 million).

The figures were revealed by finance minister Seth Terkper when he appeared before Parliament Wednesday to answer questions from MPs.

Mr Terkper said the Board of the Divestiture Implementation Committee (DIC) has directed the secretariat to present a recovery plan for all outstanding amounts.

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