Home Exposé Government to reconsider shareholding agreement with Bauxite Company

Government to reconsider shareholding agreement with Bauxite Company


Minister of Lands and Natural Resources ,
John Peter Amewu has said government will forthwith reconsider its shareholding agreement with the Chinese operators of the Ghana Bauxite Company.

It has emerged that the company has failed to pay penalty charges of up to $90m and has also failed to pay taxes for several years it’s been operating in the country.

A livid Hon. John Peter Amewu who visited the site of the company on Wednesday insisted on the authorities to improve on the manner in which they’re running the firm to ensure efficiency.

“In 2012, you made a loss, in 2013 you made a loss, 2014 you made a loss, in 2015 there was some declaration of profit, 2016 we’re yet to study your books, 2017 we haven’t got your books yet. But the point I want to raise is that, you don’t own this company hundred percent, are you aware? we equally have a participating interest and for us is not in out interest to marry a company that will be running at a loses, is not in the interest of Ghanaians for the company to be running loses.

“If you consistently continue to be making these loses, then of course government will soon advise itself as quickly as possible. The laws which is the lease agreement you have state clearly that in case of transfer pricing or dealing with affiliate relationship there must be some clear form of understanding between your outfit and the Ministry regarding the person you sign your sales and purchase agreement with to buy the bauxite. Now it’s clear that this company belongs to you, it’s your mother company or sister company and the prices you sold this bauxite over the period was not the prevailing price.

“The law even says that it must be fair and equitable but we’ve been shortchanged all this time, I’m not here to teach you what is right, but as a government and also as a Minister with my team we have not been very happy with your operations over this time. I’m waiting for your 2017 Financial statement and we’re going to advise ourself. There are clear mandate what to do both the company and then also the government in terms of cancellation clauses, but your behavior is not in the interest of Ghanaian public.”

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