Mahama Warns His Gov't Won't Honour Komenda Sugar Factory Lease If Transaction Is Not Transparent

• National Democratic Congress (NDC) flagbearer John Mahama has warned the Indian firm seeking to lease the Komenda Sugar Factory to insist on a transparent transaction
• He said the Komenda Sugar Factory was a national asset, and leasing it under opaque conditions was a matter of concern
• He said should his advice go unheeded, his future government would not honour any opaque transaction

The National Democratic Congress (NDC) flagbearer, John Dramani Mahama, has warned the prospective lessees of the Komenda Sugar Factory to avoid entering into opaque deals with the incumbent government.

His caution was in reaction to Trade Minister K.T. Hammond’s disclosure that the government had plans to lease the Komenda Sugar Factory to an Indian firm, West African Agro Limited, for a renewable 15—20-year term.

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At a media engagement in the Volta Region, John Mahama stated that the secretive nature of the transaction with the Indian company was a matter of concern.

He said the Komenda Sugar Factory is a national asset, and therefore, transactions regarding its operations must be public and transparent.

He said while the incumbent government is noted for preferring opaque deals, he expects the lessee to insist on transparency to avoid future complications.

He warned that if the NDC wins power in the 2024 elections, it will refuse to honour any opaque deals between the lessee and the NPP government.

John Mahama also suggested that instead of the sole-sourcing style of handing the factory over to a government favourite, the process should be opened to allow other potential investors to bid for the factory.

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He believes this would allow better investors to come forward and partner with the government in operating the factory.

“So, whoever it is, I am sending you a note of caution—I haven’t seen any transparent process in the leasing out of the factory,” he warned.

K.T. Hammond explains terms of transaction

The Komenda Sugar Development Company Limited was established in 1964 but closed its doors shortly after.

The John Mahama-led government rehabilitated it in 2016, securing a $35 million loan from the Indian Exim Bank and an additional $24 million investment to rehabilitate the factory’s operations.

The factory is undergoing a test run in preparation for full operations.

K.T. Hammond noted that leasing the factory to the Indian firm would not change its ownership.

He said the company would remain 100% Ghanaian-owned but have Indian operators, and the government would receive dividends from the firm's use of the factory and equipment.

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He called the leasing deal a 'fulfilment of President Nana Akufo-Addo’s promise'.

Komenda residents protest leasing of factory

YEN.com.gh reported that Komenda residents in the Central Region have announced their decision to protest the government's plan to lease the Komenda Sugar Factory to an Indian firm.

The residents say that if the Indians operate the factory, local farmers would be omitted from the production cycle.

Meanwhile, parliament has also stated that the government has yet to inform them of the intention to lease the factory.

Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh

Source: YEN.com.gh