DIC fails to recover over $21m on sale of state enterprises

Business News of Friday, 6 March 2015

Source: GNA

Dollar Note Fresh

Finance Minister Seth Terkper, on Wednesday disclosed that the Divestiture Implementation Committee (DIC) failed to recover an amount of US$21.3 million and GH¢4 million from the sale of five state-owned enterprises to private individuals and institutional investors.

The assets were sold from 2009 to 2013 at a total cost of US$30.7 million and GH¢ 6 million but less than 30 per cent of the amount due the state has been retrieved.

Mr Terkper stated this in Parliament when answering a question posed by the MP for Akwapim South, Mr Osei Bonsu Amoah requesting the Minister to provide the list of state-owned enterprises divested since 2009 and the details of the divestiture.

The Legislator had also sought to know why the government, contrary to Section 10 of the Financial Administration Act, had not made any payment into the Consolidated Fund.

Mr Tekper named the companies as the Tema Printing Press, Ghana Consolidated Diamond Company, Subri Industrial Plantation Limited, GIHOC Footwear Company Limited, and GAMA Film Company Limited.

He explained that the Tema Printing Press was divested for US$3 million, out of which US$1.1 million had been paid, leaving a balance of US$1.9 million.

The Minister said a total of US$3.2 million out of a purchase price of US$17 million for the Ghana Consolidated Diamond Company has been paid.

He said the Subri Industrial Plantation Ltd was sold for US$10 million with only US$5 million paid.

GIHOC Footwear Company Ltd was divested to a joint venture company for US$700,000, out of which US$70,000 had been paid, leaving a balance of US$630,000.

On the divestiture of the GAMA Film Company Limited, Mr Terkper said the company was sold for GH¢ 6 million with GH¢ 1.6 million paid, with a balance of GH¢ 4.4 million yet to be paid.

He said the board of the DIC had directed the secretariat to present a recovery plan for all outstanding amounts and added that the amounts would be paid into the Consolidated Fund.

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