NDC reacts to Quality Grains saga

The National Democratic Congress (NDC) says it has noted the decision of the government to take over the Quality Grains Company Limited (QGCL) and its rice operations, but expresses extreme surprise at the government's attempts to impute impropriety to officials of the former administration.

The NDC says it finds as particularly unfortunate, the allegations and insinuations intended "embarrass, harass and bring into disrepute ex-President J.J. Rawlings, ex-Vice-President Professor Atta Mills and the other former senior Ministers and officials of the NDC government".

A statement signed by the Vice-Chairman of the party Kwaku Baah notes that far from causing serious losses to the state as stated by the Attorney General, the former President and his Vice did everything possible to assist and expedite the production of rice by the company with the objective of reducing the country's dependence on imported rice and to create employment opportunities for the people of Aveyime.

As far as the legality of the transaction is concerned, the NDC vice-chairman explains that the former government through cabinet, secured Parliamentary approval for a guarantee to enable the company procure a US $7 million loan from the US Exim Bank to undertake the project. "Assurances were given to the company for land lease and mechanization services".

However, the statement says because of land acquisition and settlement problems, and due to lack of heavy-duty equipment, the original cost was augmented by US$12 million which government considered as supplementary to the original loan and therefore did not require fresh parliamentary approval. "This was also done to cut down on start-up time".

"Agriculture is risky venture. Therefore in supporting agriculture, care must be taken to safeguard the investor, the statement says, adding, "this is precisely what the government did".

Against the possibility of non-performance by Quality Grains Company Limited, the NDC government ensured that the company executed a deed of indemnity and a floating charge on its assets in favor of the government of Ghana, acting through the Ministry of Finance.

This means that in the event that the company fails to deliver its side of the bargain, its side of the bargain, the entire assets of the company comprising the large, modern rice mill complex, the silos, the driers, the vehicles, the spraying aircraft, the various complements of agricultural equipment-indeed the entire equipment and infrastructure of the company-will become the property of the government of Ghana.

"It is this indemnity clause in the agreement intended to safeguard the interest of Ghana which the NPP government is today taking advantage of to take over the company and its assets and yet creating the impression that it is correcting a wrong of the NDC government", the statement says.

According to the vice-chairman, the former government, not satisfied with the performance of the company, had already taken a decision to abrogate the contract and take over the company and its operations. The notice of default which the solicitor-general, E.A. Addo sent to the company on December 14, last year (2000) and which was refereed to by Nana Akufo-Addo at his press conference, was on the express instructions of the NDC government, the statement says.

The statement asks, "why should the ex-President, the ex-Vice-President, ex-Ministers and officials of the NDC government be harassed for a project for which the NPP intends to take credit? And why should the NPP, if not only to score cheap political points, create the impression that the project is an example of the NDC's so-called wasteful expenditure?".

The NDC assures all Ghanaians that the Aveyime Rice Project is a viable and prudent investment supported by the NDC government. According to the party, the NPP wants to credit for the project, "but to do so, they have to criminalize the NDC for initiating it. We are now familiar with this tactic. Most Ghanaians have now also become familiar with this tactic".

The party is confident that in spite of the initial teething problems, and in spite of iys obvious politicization by the NPP, the Aveyime Rice Project will succeed. According to the NDC, the project will create employment for the people of the Volta Region, "which is what the NPP wants to take credit for, and it will help Ghana reduce its import bill on rice and hopefully be in a position to export rice to the sub-region.