The government is seeking legal advice to take over the Ayensu Starch Company Limited (ASCO) and revamp its operations
He was answering a question by the New Patriotic Party (NPP) Member of Parliament (MP) for Awutu-Senya West, Mr George Andah,
The ASCO was established in 2002 with the capacity to process over 22,000 metric
To meet its objective, the company assisted various farmer-based organisations within its catchment area to produce cassava by providing them with resources (both financial and technical) to ensure
It also entered into a two-year off-taker agreement with Guinness Ghana Brewery Limited (GGBL) to supply 14,000 metric tonnes of industrial starch until
Under the agreement, GGBL provided the company with financial and technical
Ghana News Headlines
For latest news in Ghana, visit Graphic Online news headlines page Ghana news page
a company affiliated to the Jospong Group.
He said Tiberias Company accepted and made an initial payment of $2,269,500 representing 51 per cent of its $4,450,000 obligation as the purchaser, and had made no further payment thereafter.
"The Company has failed or refused to fulfil its obligations under the agreement and has defaulted on all other revised payment schedules. Furthermore, the company has abandoned the factory and left the workers idle and without compensation", he said.
Mr Kyerematen said in the light of the developments,
However, he said, in a letter dated January 14,
"We are seeking legal advice on the next line of action