Kyerematen ‘clueless’; government selling Komenda to ‘party businessmen’ – Ex-board member

A former board member of the Komenda Sugar Factory, Mr Ransford Chatman Vanni-Amoah, has said Trades and Industry Minister Alan Kyerematen is “clueless and empty” as far as the issues surrounding the Komenda Sugar Factory are concerned.

Mr Kyerematen at the Meet The Press series recently accused the erstwhile Mahama government of attempting to sell the factory two months after it was inaugurated.

“They [Mahama government] commissioned the factory in May. In two months, they were already selling the factory”, Mr Kyerematen told journalists on Tuesday, 7 May 2019 when he took his turn at the Meet The Press series.

“They had recruited”, he went on, “a transaction advisor to offload 70 per cent of their interest and the evidence is clear”, adding that: “Those who were even bidding two months after that, go and look at the figures they were quoting to buy a new factory”.

“Consequently”, Mr Kyerematen note, “all the work that has been done and the people who have expressed interest in Komenda [sugar factory] said that that factory cannot cost $35 million”.

Reacting to this claim, Mr Vanni-Amoah, in a statemen,t said: “Yes, the NDC government contracted PwC as transaction advisers to look for investors to partner the government to run the Komenda Sugar Factory. Eleven investors, both local and foreign, had shown interest to partner the government and as of 22 November 2016, the PwC had shortlisted four investors who were to form a consortium to partner the government to run the factory on a PPP basis.

“One of them was ready to pump US$25 million into the Komenda Sugar Development Company Limited. We were giving the 70% share to the private partners to manage. Adverts were published in the dailies and online portals by the previous government. But I am stating without any equivocation that Alan Kyerematen and his government are selling off the factory to their party businessmen.

“The government of Ghana, acting through the Ministry of Trade and Industry, is selling 90% shares to their so-called strategic investor. Meanwhile, they claim we wanted to sell the factory. Why haven’t they advertised the strategic investors bid but have kept the bid in secrecy?”

Below is the full statement:

ALAN KYEREMATEN IS EMPTY AND CLUELESS AS FAR AS KOMENDA SUGAR FACTORY ISSUES ARE CONCERNED

I have had opportunity to listen to the statements made by the Trade and Industry Minister at the Meet the Press Forum on Tuesday, May 7, 2019 and I must say that, he is empty and clueless. He is not on top of his job with respect to issues on Komenda Sugar Factory.

The Deputy Ministers of Trade and Industry, Carlos Ahenkora and Robert Ahomka-Lindsay started displaying their unbridled arrogance and lies about the Komenda Sugar Factory since they assumed office. I was not surprised about their utterances because we know them. Mr. Kyerematen whom I thought could reason better than his deputies, is now doing worse than they (deputies) are noted for.

He made some frivolous allegations at the meet the press forum and I would like to address them as someone who was deeply involved in the construction of the factory;

“They commissioned the factory in May and within two months they were already selling the factory. The evidence is clear. Those who were bidding for the factory two months after its commissioning go and look at the figures they were quoting,” – Alan

Yes, the NDC government contracted PwC as transaction advisers to look for investors to partner the government to run the Komenda Sugar Factory. Eleven investors both local and foreign had shown interest to partner the government and as at 22nd November, 2016, the PwC had shortlisted four (4) investors who were to form a consortium to partner the government to run the factory on a PPP basis. One of them was ready to pump US$25 million into the Komenda Sugar Development Company Limited. We were giving the 70% share to the private partners to manage. Adverts were published in the dailies and online portals by the previous government. But I am stating without any equivocation that, Alan Kyerematen and his government are selling off the factory to their party businessmen. The Government of Ghana acting through the Ministry of Trade and Industry is selling 90% shares to their so-called strategic investor. Meanwhile, they claim we wanted to sell the factory. Why haven’t they advertised the strategic investors bid but have kept the bid in secrecy?

“Preliminary investigations have revealed that the NDC government intended selling the factory at a much-discounted price than the 12 million dollars” Alan.

This dishonest statement from Mr. Kyerematen clearly shows how they want to use dubious means to sell the factory to their cronies. His ministry commissioned a technical audit team to audit sugar factory and the report was submitted on October 10, 2017.

The Factory’s Valuation Report can be found on page 8 of the entire document.

“3. Factory Valuation Report

Section 1 Valuation by PWC
A. 2016 Report



In accordance with the Ministry’s instruction, PWC provided a valuation report on 17th October, 2016 with the details as follows:

B. 2017 Report



On 15th September, 2017, PWC again submitted another valuation report with the details as below:

There is a clear variation of about 22 million USD between the 2016 and 2017 values with respect to plant and machinery. At even a legal depreciating rate of 5 – 10% per annum, the valuation between 2016 and 2017 is not justifiable.

What caused the huge depreciation of the plant and machinery? Alan Kyerematen needs to answer.

The NPP government cannot hide beyond depreciation to fault the NDC government. The plant needs to be maintained, oiled and greased on a routine basis. But if a government chooses to abandon this factory to rot, then, you will not have the value you had before. The current government simply wants to shift responsibility for their causing a loss to the state. When any project is abandoned its value depreciates and Komenda Sugar Factory is not exceptional.

As a former member and secretary to the Komenda Sugar Project Management Board, I am closely following issues surrounding the factory and I am saying without any equivocation that the Akufo-Addo led NPP government intends to sell of the factory to its party businessmen.

The Trade and Industry Minister, Mr. Alan Kyerematen is the man leading the rubbery agenda by this government. He and his deputies keep deceiving Ghana about the Komenda Sugar Factory in order to have their way of selling of the factory to their cronies.

They don’t mean well for the good people of Komenda. They never liked the idea of the NDC government’s decision to put this factory at Komenda and they have evil agenda against the factory.

The youth of Komenda must rise against the deception of the government because the future is now.

Thank you.

Signed

RANSFORD CHATMAN VANNI-AMOAH

(Former Member/ Secretary – Komenda Sugar Management Board)

(Former Director of Communications & Strategy)