Allotey Jacobs accuses GHACEM

ALLOTEY JACOBS ACCUSES GHACEM
…Company connives with dealers to cheat users and sabotage government

By Emmenuel Opare Djan,Daily Democrat

Mr. Allotey Jacobs, a member of the ruling National Democratic Congress (NDC)
communication team has accused Ghacem Company, manufacturers of Ghacemsuper
rapid and extra cement of conniving with dealers to sell the products at
exorbitant prices.
According to him, this is a deliberate attempt by Ghacem and dealers to sabotage
and derail the government’s socio- economic gains achieved under the better
Ghana agenda. He questioned the sincerity of the manufacturer to ensure that
users are paying the right price for the product at designated locations and not
cheated by dealers.
He noted that government’s effort towards massive infrastructure developments
can suffer a setback if cement prices keep on escalating beyond budget levels
because it is a major input in almost all projects.

The only possible options that will confront contractors working on government
projects will be to do shoddy works or abandon the projects half way because of
the frequent price hikes in Ghacem cement. He stressed that the country will be
the major loser in this unpatriotic and anti-government agenda.
In an interview, Mr. Allotey tasked the relevant government agencies to
institute measures to halt the unnecessary cement price hikes and advised Ghacem
not to create artificial shortages and turn round to increase prices.

He entreated management of Ghacem to ensure that prices of the company’s
products are not increased any time they experienced power outages because they
are active partners in the nation’s economic development
The current ex-factory price for 50kg bag of cement (super rapid) is GH¢10.35
while Ghancem extra goes for GH¢ 11.42. These are expected to sell at prices
ranging between GH¢11.40 in Accra to GH¢14.30 in Wa per the official recommended
end-user price list downloaded from Ghacem website on Thursday 30th June, 2011.
However, the products are sold over and above the recommended prices across the
country with dealers using shortage of the products to justify the high prices
but could not confirm or deny whether the ex-factory prices have been changed.
Users started buying Ghacem cements at exorbitant prices after the company’s
production process suffered a 3-day intermittent power supply in June.

Daily Democrat investigations revealed that prices across the country have
changed since mid-May moving above GH¢11.50.

In 2008, Ghacem raised its ex factory price from GH¢8.05 to GH¢8.74,
representing 70Gp difference highest throughout the 41-year history of the
company.Ghacem was founded by the Government of Ghanain collaboration
with Norcem AS of Norway on August 30, 1967.

In 1993, the Ghana Government sold 35 % of its shares to Scancem (formerly
Norcem). Scancem as a result had 59.5 %, leaving it with 40 % and 0.5 % going to
a local investor. In 1997, the Ghana Government sold 5 % of its 40 %
shareholding to the workers of the company.

The remaining 35 % shares of Ghana Government was sold to Scancem in 1999 and at
present Scancem has 93.1% shares in the company, Ghana Government has 5% shares
while 1.9% is owned by Dr. J. A. Addison, a local investor.

In 1999, Heidelberg Cement took over Scancem, thus making it a subsidiary.