Kicking out Jospong in Great Consolidated Diamonds deal was necessary – Asamoah Boateng

Director-General of the State Interests and Governance Authority (SIGA), Stephen Asamoah Boateng, has said there is a justifiable cause for kicking out Jospong Group of Companies in the Great Consolidated Diamonds Ghana Limited (GCDGL) agreement.

The Jospong Group of Companies took over Ghana Consolidated Diamond Company (GCD) in 2011, and under a privatization deal, changed the name to Great Consolidated Diamond Ghana Limited (GCDGL).

As part of the deal, Jospong was to invest $100 million over five years to produce one million carats of diamonds every year within the period.

The new GCDGL was also expected to pay $17 million to the Divestiture Implementation Committee.

However, last year, the government abrogated the contract, accusing Jospong of breaching the terms under the agreement.

Jospong protested the takeover and has since been seeking legal redress.

However, opening up about the deal on Monday, September 21, 2020, Mr Asamoah Boateng said the government took the best decision because his outfit, SIGA, is mandated to ensure that the investments made by the State in State-owned Enterprises (SOEs), Joint Venture Companies (JVCs) and Other State Entities (OSEs) yield positive returns.

“I had to repossess because he [Joseph Siaw Agyepong, CEO of Jospong Group] breached his own agreement with us. And the agreement is quite clear on how the government takes over our own assets…he is my very good friend but I took over the company,” he said.

Mr Asamoah Boateng was speaking on PM Express on Joy News on how SIGA is transforming many state-owned enterprises to become more viable.

He said while the Nana Akufo-Addo’s government is committed to ensuring there is local content in its private partnership agreements, it is equally committed to ensuring that the terms of the agreement are respected.

“The fact that you are Ghanaian company does not mean that if you are not performing we should leave you to destroy [the agreement]. He [Mr Agyepong] never performed. Out of $17 million he was supposed to pay, he only paid $3.8 million,” Mr Asamoah Boateng added.

The SIGA disclosed that Great Consolidated Diamond Ghana Limited may soon go public.

“We are not selling, we are going public…going on the Ghana Stock Exchange is an option. We have been given a number of options and those options have been put before Cabinet. Until [a decision is taken] the details I will reserve for now.

“But what I can tell you is that we have done all the paperwork, the expression of interest, unsolicited, about eight companies. Both foreign and local,” he said.