Rlg Group settles indebtedness to Government

There are credible indications that the mobile phone manufacturer Rlg Communications Group has settled its indebtedness to the Ghanaian government.

The news is expected to be a confidence booster for the company, its investors, and stakeholders.

Both the company and government lawyers, the Attorney-General’s Department as well as the Economic and Organised Crime Office (EOCO) are tight-lipped on the issue, deep-throat sources have confirmed the payment of about GHC 2,050,590.42 on 31st December 2014 to finalise the amounts owed the state which the company agreed to refund following a mutual understanding arising out of a Ministerial Enquiry.

The payments included accumulated interests.

A 6th July, 2015 letter signed by Ghana’s Attorney-General’s Department sighted by us “confirms that this amount is in full and the final payment of Rlg Communications indebtedness to GYEEDA”.

For many observers, the latest development does not come as a surprise because previous governments since 2006 extended similar facilities to the company through MASLOC which were paid back with interests.

Described by many industry watchers as the Fastest Growing Company, Rlg Group since its incorporation in 2002, has chalked a number of successes including the training of thousands of youth in Ghana, the Gambia and Nigeria in a sub-region where it led a major revolution in the ICT sector, becoming the first indigenous Pan African company to assemble and currently an Original Equipment Manufacturer (OEM), churning out mobile phones, computers and other electronic devices.

Its tremendous impact had won it many local and international awards. In 2012, it was ranked the No 1 company on the Ghana Club 100 and was named the 2nd Most Respected Company the same year by PriceWaterHouse Coopers (PWC), a renowned global audit firm.

It would be recalled that Government terminated all contracts between the Ghana Youth Employment and Entrepreneurial Agency (GYEEDA) and its service providers.

Those cancelled include the Rlg Communication's training module, Asongtaba Cottage Industry & Exchange Programme (ACI&EP) and the Better Ghana Management Services Limited, a subsidiary of Jospong Group, the parent company of Zoomlion.

The decision to cancel the contracts was reached following a series of meetings between government and the parties, a letter signed by the Chief Director of the Ministry of Youth and Sports, Alhaji Abdulai Yakubu, and addressed to the service providers said.

The letter dated January 9, 2014, read in part, "I am directed to convey to you, Government's decision to discontinue or terminate the contract with immediate effect.”

"You are hereby requested to continue to have engagements with the Attorney General's Department and Ministry of Justice on your liabilities to GYEEDA and ensure the refund of same to Government,” it added.

Following allegations of questionable partnerships between GYEEDA and some service providers, the government set up a committee to investigate its operations.

The committee, in its report, which was presented to President Mahama, recommended the cancellation of some contracts it said should never have been awarded in the first place and the refund of some monies to the state.

An action paper on the report further proposed the passage of a new law to govern the youth employment agency.

In February this year, Parliament of Ghana passed the Youth Employment Agency Act to give legal backing to programmes and projects under the new agency.