Gov’t and Jospong in legal battle over Ayensu Factory

• Posted on March 1, 2019
• by Ellsamwise King
• Comment

A legal battle is brewing between Government and Jospong Group over the ownership of the Ayensu starch factory in Bawjiase.

According to Trade and Industry Minister, Alan Kyerematen, Tiberias, an affiliate of the Jospong group bought 70 percent of government shares in the company in August 2016 at 4.5 million dollars in 2016 with an initial amount of 2.2 million dollars.

The remaining amount has not been settled, while the factory has been abandoned with no compensation for the workers.

Answering questions in Parliament on Friday, Alan Kyerematen said the government is seeking to legally restore its ownership of the company and place it under the one district one factory policy for job creation.

“The country has failed or refused to fulfil its obligations under the purchase agreement. In the light of these and other developments, the Ministry through the transaction advisers informed the company of its decision to take over the Ayensu Factory …The company subsequently communicated its refusal to hand over the factory to the Ministry. We are currently seeking legal advice on the next line of action to take to restore the company.”

The Ayensu Factory has been reportedly shut down for some time now.

1D1F policy

Per the one district, one factory policy, it is expected that every Metropolitan, Municipal, and District Assembly will have a factory established to boost local economies and create jobs.

President Akufo-Addo recently dismissed suggestions that the government was struggling in its implementation of the project.

According to him, plans to liaise with the private sector to build factories in every district is on course.

A former Minister of Information, Mustapha Hamid, also defended the programme but admitted that not every district would see the establishment of a factory before the end of Akufo-Addo’s tenure.

He said they hoped that if they are unable to create factories in all the districts as promised, successive governments will complete it.

“President Akufo-Addo was virtually saying that for this country to improve, it is a country that we can get one district one factory, and that when he gets the power, he will put in place measures to make sure that dream is fulfilled. So he may not in the four years or eight years be able to establish a factory for every district, but whatever it is, even if he can do 100 or 200, any successive president can continue with the projects, then [it will mean that] we are moving towards President Akufo-Addo’s Ghana beyond aid agenda,” he stated.