Business News of Monday, 19 June 2017

Source: adomonline.com

VRA disconnects power at ATL over GH¢1,000,000.00 debt

Volta River Authority (VRA) has disconnected power at Akosombo Textile Ltd (ATL) in the Eastern Region over accumulated debt of about GH¢1,000,000.00 leading to a shutdown of the company.

Sources at ATL told Adom News’ Kwame Yankah that, the company in the last six years has reneged on its earlier promise to clear its debt.

As the debt accumulated, VRA went into agreement with ATL giving the company terms of payment and options but this again did not work.

VRA which was left with no choice cut power supply to the company.

About a thousand ATL workers are currently home awaiting reconnection to enable the company begin production.

According to them, the gradual collapse of ATL over the years has been more of managerial problems rather than the company not being viable.

The workers cited how thousands of dollars were paid to ATL to produce anniversary cloth for Congo last year but none of the workers below management level was paid after delivery to buttress their point.

These aggrieved workers who spoke on condition of anonymity said attempts by some individuals including former Member of Parliament for Asuogyaman constituency, Kofi Osei Ameyaw to revive the textile company were met with fierce resistance.

They claim a mafia within the company allegedly frustrated the former MP making him to abandon his plan.

Sources say, ATL is trying to negotiate with VRA as to how it intends defraying its debt but are not sure when ATL will be given the green light.

VRA’s hands are also tied as the disconnection exercise embarked upon was to enable VRA raise money for power generation.

Adom News is learning that the disconnection exercise also affected some mining companies whose debt are about thrice that of ATL.

A deep throat source at ATL has hinted that the company will soon lay off some workers at the spinning and weaving departments.

However, attempts to get responses from ATL have yielded no results.