A key advocate for the takeover of the Akwatia Diamond Mine from Jospong Group of Companies has said the government did not err in its action.
According to Atik Mohammed, the government has been very magnanimous to management of the Great Consolidated Diamonds, formerly Ghana Consolidated Diamond Limited (GCDL), a subsidiary of the Jospong Group that failed to pay off their debt to the government.
Management of GCDL claims the government, through the Divestiture Implementation Committee (DIC), acted without following due process following the takeover.
In a statement, Jospong argued that, the issue of the legality of the abrogation was before the law court and, therefore, it was wrong for the government to take-over the company.
But, Mr Mohammed on Adom FM’s anti-corruption show, Fabewoso said before the government abrogated the contract, DIC wrote to GCDL several times but they failed to respond.
He said GCDL also failed to fulfill its core mandate of paying $17 million to the DIC, as well as rehabilitating and refurbishing facilities at the mines to enhance production.
He also doubted the supposed $20 million investment claim by Jospong when in fact “they couldn’t raise the initial capital to fully takeover the mine.”
“Don’t let us promote fraud in the name of promoting local entrepreneurship; government taking over the mine is in the interest of the State,” he said.
But, the Chief Executive Officer of the Consumer Protection Agency, Kofi Kapito vehemently disagreed with Mr Mohammed’s position.
He said political witch-hunt of such nature had resulted in the collapse of very vibrant Ghanaian businesses.
Mr Kapito said though Jospong had not fulfilled its part of the bargain, the government should have given them more time to raise the needed capital to operate the mine.
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Source: Ghana|Adomonline.com|Adwoa Gyasiwaa Agyeman