ASAP Petitions Parliament Over Idle Komenda Sugar Factory
The current idle state of the Komenda Sugar Factory has compelled the Alliance for Survival of Abandoned Projects (ASAP) to file a petition to the Speaker of Parliament for action to be taken as a matter of urgency.
The petitioners are questioning why the factory is still not operational after the introduction of the strategic investor.
Here is the full petition presented on Thursday 5th March 2020.
THE RIGHT HONOURABLE SPEAKER,
PARLIAMENT OF GHANA,
PARLIAMENT HOUSE,
ACCRA.
Dear Sir,
PETITION TO INTEROGATE THE PROCESS IN WHICH THE PARK AGROTECH GHANA LIMITED WON THE BID TO MAN THE KOMENDA SUGAR FACTORY
The Alliance for Survival of Abandoned Projects (ASAP) is a Civil Advocacy Group operating in Ghana with the interest in advocacy against the Ghana Government’s Abandoned Projects. Our core objective derives from Chapter Six of the Constitution of Ghana which talks about the DIRECTIVE PRINCIPLES OF STATE POLICY: Article 35. (7) As far as practicable, a government shall continue and execute projects and programmes commenced by the previous Governments. There are Government of Ghana's projects which have been left unfinished by successive governments; such as Elmina Fish Processing Plant, Bekwai Municipal Hospital, Community Day Senior High Schools and several others.
Rt. Hon. Speaker, the Minister of Trade and Industry, Mr. Alan Kyerematen appeared before the august house on Thursday, 4th April, 2019 to indicate to the Members of Parliament about the state of the Komenda Sugar Factory at the time, and the government’s intention to hand over the sugar processing plant to a strategic investor.
Answering questions in Parliament on that day, Mr. Alan Kyerematen said; “the quest to bring the factory back to life is on course”.
“The Ministry in an effort to put the factory in production decided to initiate a new process in consultation with the transaction advisers to attract another strategic investor to acquire the assets of the Komenda Sugar Factory. I envisage that the final decision in respect with this matter will be taken by end of April”. - Mr. Alan Kyerematen indicated.
Rt. Hon. Speaker, the government on Tuesday 26th November, 2019 handed over the Komenda Sugar Factory to a strategic investor whom we were told is willing to invest US$28million into the Sugar Factory. This was announced when the Managing Director of Park Agrotech Ghana Limited, a subsidiary of the Skylark Group of companies from India and his team were introduced to the chiefs and people of Komenda by the Ministry of Trade and Industry acting on behalf of the Government of Ghana and PwC, the transaction advisers indicated to the public how the aforementioned company won the bid to take over the sugar factory.
Three months down the line, the Alliance for Survival of Abandoned Projects (ASAP) would like to ask the following questions which demand proper scrutiny, because the investor is not moved to the site yet and the factory keeps deteriorating;
1. Why is the strategic investor (Park Agrotech Ghana Limited) not moved to the site to commence work to salvage the sugar factory from its deplorable state?
2. Is there a contract signed between the Government of Ghana and the Park Agrotech Ghana Limited?
3. Does Parliament of Ghana know the details of the contractual agreement?
4. Has the Parliament of Ghana approved the said contract?
5. Is it an outright sale or Public Private Partnership (PPP) agreement?
6. If it is a PPP agreement, how long would the Park Agrotech Ghana Limited manage the facility?
7. What is the shareholding structure?
Rt. Hon. Speaker, the minister also talked about a technical audit report which was submitted to the house. We would like to ask the minister certain questions from the report on Komenda Sugar Factory which we find very relevant.
On page 2, item 6 in the report laid before parliament on April 4, 2019, it reads; The Technical Audit Team proposed the following as matters for consideration in developing the options for making the Komenda Sugar Development Company Ltd operational.
• Complete installation by Seftech
• Conduct trial and test runs
• Water for the factory
• Land for sugarcane cultivation
• Economics of importing raw sugar for processing.
• 6 months operation (campaign period 180 days)
• Management training
We would please like to ask the following questions;
1. Which technical audit firm was contracted to execute the audit?
2. Were there representatives from Seftech India Pvt Ltd (the contractor) present during the period when the technical audit was carried out?
3. If not, has the Government of Ghana communicated to the contractor to complete installations as stated in the report?
4. When will Seftech India Pvt Ltd come and complete the installation?
5. Since the assumption of office by the current Minister of Trade and Industry, has the plant ever been tested?
6. What is the purpose of importing raw sugar to process at the Komenda Sugar Factory?
Rt. Hon. Speaker, under Factory Valuation Report on page 8 of the Report on Komenda Sugar Factory, it was stated that the PwC (transaction adviser) provided a valuation report on 17th October, 2016 which valued the cost of the plant and machinery at US$34,678,400.00. Another valuation report was submitted on 15th September, 2017 which the cost of the plant and machinery depreciated to US$12,029,715.00 as an open market value and US$10,826,743.00 as a forced sale value.
1. What caused the plant and machinery to be hugely depreciated to the sum of US$12,029,715.00, instead of legal depreciating rate of 5-10% per annum?
2. Is it a deliberate scheme on the part of PwC to run down the company to reduce its value?
Rt. Hon. Speaker, it is our prayer that all issues raised would be interrogated for the purpose of transparency and accountability.
We are extremely confident that this petition would be given the needed attention as we cannot sit unconcerned for this sugar factory to rot away.
Kindly find as attachments, documents, pictures, and the YouTube link of the audiovisual evidence of the current state of the Komenda Sugar Factory https://YouTube.be/y22o1m96dWl.
Thank you.
Yours faithfully,
CITIZEN RANSFORD C. VANNI-AMOAH. NANA ADWOA BADU II
(EXECUTIVE DIRECTOR). (PARAMOUNT QUEEN MOTHER)
0209909054. (KOMENDA TRADITIONAL AREA)
CITIZEN MAMUD ISSAH JAGBESIEARE.
(SECRETARY) EBUSUAPANYIN EBO JONES
(HEAD -KOME EBIRADZE ROYAL FAMILY)
CITIZEN VICTOR NANKA-BRUCE EBUSUAPANYIN KWEKU WOBIR
(CONVENOR) (HEAD- KWAHIN ABORADZE FAMILY)
(OPINION LEADER – DISTILLERS ASSOC)
CITIZEN ISHMAEL ABAKAH
(COMMUNICATIONS DIRECTOR) HON. ISMAIL ZAGOON-SAEED
(FORMER MUNICIPAL CHIEF EXECUTIVE)
(KOMENDA-EDINA-EGUAFO-ABIREM)
CITIZEN EVANS NII BOYE
(PROGRAMMES DIRECTOR)
HON. ALPHONSE BAIDOO
(ASSEMBLY MEMBER)
MR. ISAAC O. MENSAH (SASSEM ELECTORAL AREA – KOMENDA)
(OPINION LEADER)
HON. JOSEPH KOJO WILLIAMS
(ASSEMBLY MEMBER)
(ANOMAKO ELECTORAL AREA – KOMENDA)
MR. ANTHONY ANAFO
(SUGARCANE FARMERS ASSOCIATION)
AMA ESAABA HON. THOMAS BAIDEN
(MARKET WOMEN ASSOCIATION) (ASSEMBLY MEMBER)
(AMOTOE ELECTORAL AREA – KOMENDA)
HON. DANIEL ESHUN
(FORMET ASSEMBLY MEMBER)
(ANOMAKO ELECTORAL AREA – KOMENDA)
Cc: Majority Leader
Minority Leader
Majority Chief Whip
Minority Chief Whip
Chairman – Trade, Industry & Tourism Committee
Vice Chairman – Trade, Industry & Tourism Committee
Ranking Member – Trade, Industry & Tourism Committee
Deputy Ranking Member – Trade, Industry & Tourism Committee
Member of Parliament - Komenda-Edina-Eguafo-Abirem Constituency