BUSINESS GUIDE has gathered that West Africa Mills Company (WAMCO), a cocoa processing company located in Takoradi in the Western Region and its majority shareholder HOSTA, a German company, have taken legal action against the Ghana Cocoa Board (COCOBOD), which is also a shareholder in the company.
The plaintiffs are seeking an order to compel COCOBOD to resume supply of cocoa beans to WAMCO to enable the latter resume operations, among other reliefs.
WAMCO said the unilateral suspension of supply of cocoa beans to WAMCO by COCOBOD is a breach of the Joint Venture Agreement existing between the parties.
The operations of the company have ceased for more than two and half years as a result of the alleged refusal by COCOBOD to supply it with cocoa beans to boost production.
The cocoa processing company has contributed immensely to Ghana’s economy by adding value to the country’s agricultural products, employing hundreds of workers and earning foreign exchange for the country.
About 200 workers have been sent home and the huge investment made in the company is going waste.
Recently, there have been many negative publications against the company in a section of the media, which sought to suggest that WAMCO and its majority shareholder were engaged in some illegality in the running of the affairs of the company.
COCOBOD was also alleged to have issued various statements in the media ostensibly to endorse the negative publications.
However, the management and the majority shareholder of the WAMCO maintain that the company has been scandalized by the deliberate peddling of blatant falsehood against the plaintiffs.
According to the plaintiffs, “The publications are mere fabrications or at best half-truths and are not only disappointing, but provocative, to say the least.”
When BUSINESS GUIDE contacted Frank Bednar, Deputy Managing Director of the company, he confirmed that indeed WAMCO had taken legal action against COCOBOD.
He explained that over the past years COCOBOD had consistently failed, neglected and refused to meet its obligations under the existing joint-venture agreement.
He indicated that the company would collapse if the court does not compel COCOBOD to resume the supply of cocoa beans to the company to enhance production.
Source: Daily Guide
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