NDC tried to sell the Komenda Sugar Factory but failed – Alan Kyerematen alleges

General News on Friday, April 5th, 2019

Source: kasapafmonline.com

2019-04-05

The Minister of Trade and Industry, Alan Kwadwo Kyerematen, revealed that the former government led by the National Democratic Congress led by John Dramani Mahama had attempted to cede the majority shares of the country in the late Komenda Sugar Factory to a private investor whose identity has not yet been revealed.

However, the transaction could not succeed because the said investor did not fulfill his share of the obligations arising from the sales and purchase contract.

Mr. President, at the end of 2016, the previous government had sold its majority shares to a private investor, however, the process was interrupted due to non-compliance by the designated investor with contract of sale and purchase, "he noted.

Kyerematen made the revelation on Thursday when he spoke in Parliament and spoke to MPs about the status of the Komenda Sugar Plant and the steps the government has taken to make it viable.

His comments were triggered by a question put by the National Democratic Congress (NDC) MP for Komenda / Edina / Eguafo / Abirem (KEEA) on "the reason why the Komenda Sugar Factory was closed and what are the reasons for the closing the site. factory".

Mr Kyerematen added that his team was looking to turn the plant into viable commercial production. She has therefore decided to initiate a new process in collaboration with the transaction advisor, Pricewaterhousehouse Coopers (PwC), to attract a strategic investor to acquire the badets of the company. . Komenda Sugar and manage the operations of the company.

Mr. Speaker, I am pleased to announce that the bid evaluation process has been completed by the Transaction Advisor and a recommendation has been made to the Department and Cabinet. It is envisaged that the final decision on this issue will be taken by the end of April 2019, "he said.

In 2016, the government obtained a US $ 35 million bank from EXIM Bank and US $ 24 million to support contract farmers.

However, after the commissioning of the candy factory on May 31, 2016, the factory has been inactive since.

The Minister of Trade and Industry has blamed the dormant installation for serious deficiencies in project planning and other financial, technical and legal problems.

For this reason, the ministry, according to Mr. Kyerematen, has commissioned a technical audit of the plant to determine its technical and operational status.

The results of the technical audit, he added, revealed that a series of tests had never been carried out before the commissioning of the plant in because of the unavailability of enough sugar cane for testing.

In addition, during commissioning, the plant was not able to produce the refined white sugar required due to the lack of clarification units, crystallizers, vertical and dosing system that had not been fully installed during the test.

"Overall, about 35 items were not installed during commissioning, although they are essential for the production of sulfur-free white sugar. The amount of land available for cultivation is by far less than 6,000 acres, which is required to supply sugar cane to allow the mill to operate at full capacity. No subcontracting program has been developed to allow smallholders to operate a plant plantation at the core of the plant. In general, the market is not favorable and requires a significant application of organic and inorganic fertilizers to improve yields ". he explained.

KEEA MP Samuel Atta-Mills, responding to the Commerce Minister's comments in an interview with reporters on the sidelines of the parliamentary session, said that there was no urgency on the part of government to seek a strategic investor to invest in the factory. make it viable.

He added that KEEA's chief and farmers had promised more than 17,000 acres of land to sugar cane growers for the plant, stressing that what the government needed to do was to contract a borrowing from the government enlarge their farms and be able to feed the factory.