Sell off remaining state assets – Mahama

The newly-constituted Divestiture Implementation Committee (DIC), headed by Finance Minister Seth Terkper, has been asked to dispose of remaining state assets which are on divestiture before the end of 2016.

Rashid Pelpuo, Minister of State responsible for public-private partnerships, made the announcement on behalf of President John Mahama on Friday when he inaugurated the new committee

According to him, the disposal of the remaining government assets on divestiture before December 2016 would help curtail additional maintenance expenditure on the assets.

Among the assets waiting to be sold are the Abosso Glass Factory, Bonsa Tyre Factory, Bolga Meat Factory, EREDEC Hotel, Catering Rest House and GNTC House in Tamale.

President Mahama has also asked the DIC to resource its legal department to ensure due diligence before any divestiture.

He also asked the members to resolve outstanding issues with previous divestitures, including non-payment of the liabilities of some divested companies, and to submit the unit’s audited accounts that have been outstanding since 2009.

“The availability of legal support will assist the Attorney-General to respond promptly to numerous suits before the courts and the Labour Commission, and also to commence legal action for the retrieval of outstanding divestiture receipts,” he said.

Mr Pelpuo tasked the committee to be proactive, encourage and facilitate the business plans of investors by working with other sectors to government to ensure the survival of the local industry.”

He said in all cases local investors must be given priority and foreign investment collaborations should be encouraged.

Other members of the DIC include Trade Minister, Haruna Iddrisu, Employment and Labour Relations Minister Nii Armah Ashietey, and Secretary- General of the Trades Union Congress, Kofi Asamoah.

Created more than two decades ago, the DIC has led the privatization of many state-owned companies, but has been criticized for working slowly as some companies still have not been sold.

Additionally, it has failed to fully retrieve monies from asset buyers.

Some analysts have proposed that instead of disposing all of them, the good ones among the afore-mentioned entities could be privatized through public listing on the Ghana Stock Exchange (GSE).