Kumasi shoe factory to shut down over non-patronage of products

Kumasi shoe factory to shut down over non-patronage of products

The management of the Kumasi Shoe Factory is considering closing the factory over the refusal of the security agencies, particularly the Ghana Armed Forces (GAF), to patronise boots and shoes they produce.

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Management of the company came out to lament in November 2017 about the effects of the refusal of the state security agencies to patronise their products.

When the Daily Graphic visited the factory in Kumasi on October 25, 2019, work had slowed down because boots and shoes which had earlier been produced for the security agencies were still yet to be purchased.

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The workforce of 200 in 2012, when the company was resuscitated, has been reduced to 41 because there is little work to be done.

Few orders were being received from private individuals and entities.

Currently, the factory is producing about eight percent of its installed capacity of 700,000 pairs of security boots per annum.

The development has been compounded by the continuous piling up of electricity bills, VAT and import duties on raw materials.

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In other news, the Minister of Finance Ken Ofori-Atta has explained that the cancellation the concession agreement with Power Distribution Services(PDS) was to protect the 3 billion dollar assets of the Electricity Company of Ghana(ECG)

Ofori-Atta said that there was no need for the government to pursue the matter since some partners in the deal breached agreements that were vital to the sustainability of the takeover.

Speaking on Citi TV’s current affairs show the Point of View, Ofori Atta explained that the government had a limited time to take a strategic decision to rescue the assets of ECG.

READ ALSO: Cancellation of the PDS deal was to protect ECG assets worth $3 billion — Ofori-Atta

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Source: Yen.com.gh

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