Government has abrogated a US$13 million contract with Bullion Group Consortium, an investor in the Volta Star Textiles Limited at Juapong in North Tongu Constituency in the Volta Region.
This is because Bullion Group Consortium has failed to make any payment several months after it won the bid to control 70 per cent shares in the Juapong based company.
“The Bullion Group Consortium, led by ANFD International, is yet to make any form of payment although they have had regular consultative engagements with Transaction Advisor PWC.
“ANFD International proposed to make payment by May 2017 but has failed to make any payment to date,” the Trade and Industry Minister, John Alan Kwadwo Kyeremanten told Parliament yesterday.
He was responding to a question filed by Member of Parliament for the area, Samuel Okudzeto Ablakwa, who wanted to know the progress of work on the private participation in the future of the company.
The Trade and Industry Minister said a fresh tender process is however, expected to be re-opened for potential investors to bid.
According to Mr Kyeremanten, the new bidding process is scheduled to commence at the beginning of next month.
The Volta Star Textiles Limited, he said is in a dire financial situation because it is indebted to the Electricity Company of Ghana, the Ghana Revenue Authority, the Social Security and National Insurance Trust (SSNIT) the Ghana Exim Bank, service providers and staff of the company, all combined, to the tune of GH¢13.4 million.
In this regard, Mr Kyeremanten indicated that documents for a stimulus package for the company in line with government’s policy to revive some state owned enterprises have been submitted and are being perused for determination.
He said government remains committed to revamping the manufacturing sector of the economy to achieve its industrialisation drive.
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