Olympio, Cronies to Vomit ?21bn?

THE TOGOLESE opposition leader, Gilchrist Olympio and his cronies, may be forced to vomit an amount of ?25.5 billion owed to 13 institutions in Ghana, following the collapse of the Tropical Glass Company (TGL), formerly Abosso Glass Factory.

The institutions include Government of Ghana - ?7.6 billion; Midco International - ?4.5 billion; Commonwealth Development Corporation - ?4 billion; Agritec - ?1.6 billion; ECG - ?1.4 billion and Divestiture Implementation Committee (DIC) - ?1.5 billion.

The government is initiating criminal investigations into the affairs of the company and the culprits would be handed over to the Attorney-General's office for appropriate action.

The Minister of Trade and Industry, Dr. Kofi Konadu Apraku, who disclosed this at the news conference in Accra, said cabinet has also decided to abrogate the lease of GIHOC Glass Manufacturing Limited to TGL.

Also, cabinet has directed that the company should be returned to the Divestiture Implementation Committee (DIC) for divesting.

Cabinet, he said, has also decided that the credible liabilities of TGL may be settled from the proceeds from the divestiture of the company.

Explaining further, Dr. Apraku said TGL has failed to meet the terms and conditions of the lease agreement entered into with the DIC on behalf of the government.

Under the agreement, the government shall re-enter the demise premises, if after second year of the lease agreement of May 1991, TGL is unable to undertake rehabilitation and refurbishment works of the plant and equipment aimed at improving the efficiency and the quality of products.

Also, the government shall re-enter, if TGL is in rent arrears for three months provided the rent arrears are not caused by disruption as a result of interruption in electricity or water supply to the factory and non-availability of foreign exchange.

The minister added that the government shall abrogate the agreement, if TGL is declared bankrupt by the court or go into liquidation, whether compulsory or voluntary, except for the purpose of reconstruction or amalgamation.