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General News of Monday, 27 May 2002

Source: NBS media

Minister moves to stop "aluta"

Western Regional Minister, Joseph Boahene Aidoo, (MP) has warned that a planned massive demonstration against the takeover of Prestea Goldmine by Bogoso Gold Limited (BGL) at Prestea, would not be countenanced because it would be a threat to peace and security.

Reports reaching the Regional Security Council (REGSEC) indicate that some elements with vested interest at Prestea intend to disturb the peace of the township by undertaking a violent demonstration to coincide with the environmental assessment of the mine today Monday May 27, 2002.

The report indicated that, a first demonstration was to be staged on Sunday, May 26 and the organiser's objective was to use the violent demonstrations to draw the government's attention to Prestea.

The Minister warned the organisers to take a second look at their decision because security measures have been put in place to arrest and prosecute "those who may engage in any violent acts instead of pursuing dialogue with management and the government".

Some interested groups at Prestea are said to be vehemently opposed to the management takeover of Prestea mines, a plan initiated by the government to save Prestea Gold Resources from total collapse.

After the workers union took over Prestea Gold Resources (PGR), when it folded up, its management gave the impression that the company was making profits although in actual fact was making losses.

The company made a net income loss of 1.2 million dollars in 1999, 1.8 million dollars in 2000 and 4.5 million dollars in 2001. According to the Regional Minister, management failed to disclose the dismal performance of the workers and kept on encouraging them to work for bonuses, which did not exist.

Utility bills of the mines accumulated for months and the company was unable to pay its creditors, and for two months last year, although the workers worked alright, management had to approach Bogoso Gold Limited for loans for the payment of the workers salaries.

Mr. Aidoo said Bogoso Gold Limited also paid the five months' salary arrears, including two months severance pay of the workers of Prestea Goldmines to save the management from pressure from the workers.

At the time that the situation came to the attention of the government, Prestea Goldmines was in debt to the tune of 10 million dollars. Investigations into the performance of the company over the years revealed that the underground mining is no longer viable, since the cost of producing an ounce of gold was higher than the world price of an ounce of the commodity.

He assured the public that the underground mine would not be closed permanently and BGL has been given two years to assess the viability of the underground mines and submit its report for further study.

Mr. Aidoo said to relieve the displaced workers from any further suffering; his administration would ensure that BGL employs some of the displaced workers from Prestea Goldmines.

Mr. Aidoo said efforts would be made to ensure that BGL make the underground mines viable after the surface mining and that 45 per cent of the underground mine is opened to any interested investor.

He said displaced workers, who would not be employed in the mines, would be considered for alternative jobs and any structure that would be affected during the surface mining should be properly relocated to the satisfaction of the communities.

The Regional Minister said the environmental protection agency (EPA) would be made to monitor the operations of the project. Mr. Aidoo also gave an overview of measures that have been put in place to check the incidence of armed robbery and rape cases in the Shama Ahanta East Metropolis and Wassa West District.

A number of suspected armed robbers and their collaborators have been arrested and placed in custody while investigations for prosecution are on course. The threats to the peace in the region mainly on the chieftaincy front, persist at Amoya, Akontombra, Chirano, Elubo and Fijai and in all these cases, measures have been taken to bring the situation under control the regional minister added.

The Western Regional security committee had been able to prevail on Kesse Kpanyili faction at Elubo to bury their dead colleague, who died in a clash between two factions three months ago this weekend. Mr. Aidoo said operations to flush out galamsey operators who have extended their activities to other parts of the region are on course.