Hon. Ibrahim Murtala Muhammed MP for Tamale Central constituency and the former Deputy Trades Minister under the erstwhile Mahama government has expressed strong concerns over the government’s decision to lease the Komenda sugar factory to West African Agro Limited, an Indian-based firm, for a renewable term of 15 to 20 years.

Hon. Murtala who is also a Member of Parliament’s Trades Committee questioned the government’s transparency and accountability in the deal.

He pointed out that the minister’s unwillingness to disclose the amount involved in the lease agreement and the duration of the lease raises suspicions of corruption.

The former Deputy Trade minister recalled that in 2016, his government revamped the Komenda sugar factory and secured a $24 million loan for raw materials, but the current government failed to access the funds and instead allowed the factory to idle.

He also criticized the government for not bringing the agreement to parliament for approval, as required by law.

“Do you have any evidence that they brought such into parliament? Mind you, the company that we wanted to engage was not a Ghanaian company. So, if it wasn’t a Ghanaian company, any contractual agreement that government intends to enter into with any foreign entity ought to be brought to parliament for approval. Did they bring it? So, I’m saying that it’s just a desperate move.”
Honorable KT Hammond, Minister of Trade and Industry

Hon. Murtala accused the government of seeking to give the factory to their friends at the expense of the state’s benefit. He further vowed to invite the minister to parliament to explain the deal and ensure that the Trade and Industry Committee is engaged in the process.

The Tamale Central Member of Parliament empasized that the Minority Caucus in Parliament is keen on inviting the Trade Minister to appear before the house to answer questions on the lease agreement.

He added that about 15 members of the Minority Caucus have signed up to reconvene Parliament, hoping that the issue will be addressed soon.

Komenda Factory Sugar Lease

In an earlier development, the Minister of Trade and Industry, Honorable K. T Hammond announced plans to lease the Komenda sugar factory to West African Agro Limited, an Indian-based firm, for a renewable term of 15 to 20 years.

The minister made this announcement during a working visit to the factory in the Komenda Municipality of the central region.

“Well, I’ve approved it. It’s just that, we haven’t adopted the i’s and cross the t’s. I think, it was agreed, that, to be able to cross the t’s, dot the i’s, and eventually put the signatures, we must be clear about this; So, I think the provisional feedback I’m getting from them is that they are happy, with the maintenance the NPP government is putting into this place.”
K. T Hammond, Minister of Trade and Industry

According to Minister Hammond, the decision to lease the factory is necessary to revitalize its struggling operations. The minister stated that the government has approved the lease agreement, but the final details are yet to be worked out.

On the contrary, the minster failed to tell exactly what Ghanaians seeks to gain from such agreement deal of a kind, however stated that the government is ensuring that the factory, which has cost Ghana $38 million, does not go to waste.

KT Hammond 1 — Honorable KT Hammond, Minister of Trade and Industry

The minister explained that the government will not have shares in the company’s products but will receive payment from the company for using the factory’s equipment and assets.

“We are leasing it as a board in place, as a company which has a board. We’ll just put them in charge, but it’s 100% Ghana owned. But we are leasing it. We are leasing our asset to a company which is going to work on it, I mean, use our asset, our equipment, use it, and then pay us back at the end of the day. We’re not gonna have shares in their products, but the company is 100% Ghana owned. The lease agreement is for an initial period of 15 to 20 years, with an option for extension or renewal after the initial lease expires”
Hon. KT Hammond, Minister of Trade and Industry

However, Minister Hammond then declined to disclose the figures involved in the agreement, stating that a report will be provided in due course.

The decision to lease the Komenda sugar factory to a private company has raised questions about the government’s commitment to protecting public assets. However, Minister Hammond assured that the factory remains 100% owned by the government of Ghana and that the lease agreement is merely a means of ensuring its survival.