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in General News

Komenda sugar factory Lease: NDC MP Criticizes Government’s Delayed Action

M.Cby M.C
August 7, 2024
Reading Time: 4 mins read
Hon. Alhassan Sayibu Suhuyini

Hon. Alhassan Sayibu Suhuyini

The   MP for Tamale North Constituency Hon. Suhuyini Alhassan Sayibu has criticized the New Patriotic Party administration over its delayed action to revitalize the Komenda Sugar Factory.

Hon. Suhuyini recalled that the factory was commissioned in 2016, with a test run conducted to ensure its operability.

Hon. Suhuyini pointed out that the new government took over in 2017, they conducted an audit, finding petty issues such as the lack of waybills for sugarcane procurement and inadequate electricity supply.

Hon. Suhuyini questioned why it has taken eight years to address these issues, stating, “Should it take 8 years to fix those things? Should it?” He emphasized that the factory had the potential to improve Ghana’s currency and import substitution, but petty politicking has hindered its progress.

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Hon. Suhuyini, further referenced the Ameri Plant deal, where the current government’s renegotiation led to a more inflated deal, burdening Ghana with an additional $1.12 billion debt. Hon. Suhuyini noted, “We would have lost that opportunity… if is the same thing with Komenda.”

Regarding the Komenda Sugar Factory, Hon. Suhuyini pointed out that the factory’s value depreciated from $53 million in 2016 to $40 million in 2017 due to inaction by the new government. He asked, “Shouldn’t we be holding people responsible for that causation of financial loss? Because that, in my view, is deliberate.”

In response to K. T Hammond claim that the cost of refurbishing the factory was inflated by $12 million, Hon. Suhuyini stated, if anybody did anything wrong, if anybody inflated the price… what stopped the government from holding those people responsible and so that they can ensure that the issue is fixed to solve the problem of sugar production in Ghana.

Hon. Suhuyini   emphasized that the project was well-thought-out, referencing President John Mahama’s statement in his state of the nation address, where he highlighted the need to address imports, including sugar, affecting Ghana’s currency.

Hon. Suhuyini stated that “do we allow that petty politicking to destroy a project that has the potential to improve our currency and also improve import substitution? Why? Just because you want to still continue with the narrative that the previous government made a mistake.”

Accountability and Transparency

Meanwhile, Mr. Solomon Owusu a Prominent member of the Movement for Change expressed dissatisfaction over the recent developments surrounding the Komenda Sugar Factory.

However, Mr. Solomon recalled how the previous former Minister for Trade and Industry, and the flag bearer of the Movement for Change Party, Alan Kyerematen, had received widespread support during the NPP’s internal primaries for his efforts to address the challenges facing the factory. Mr. Solomon highlighted that the former Trade minster Alan Kyerematen of did complete about 98% of the sugar factory project before leaving the shores of power to run his presidential race.

Komenda Sugar Factory
Komenda Sugar Factory

Mr. Solomon further praised the former minister’s comprehensive approach, which included commissioning a thorough audit to identify the problems hindering the factory’s operations. The audit revealed that crucial machines were not installed prior to commissioning, rendering the factory inoperable.  The minister’s efforts to engage a strategic partner and complete the factory’s renovations were also commended. He further explained that the factory was not completed due to the problem of machinery.

However, Mr. Solomon expressed surprise and concern over the current Minister for Trade and Industry, K.T Hammond announcement of a new deal with a different partner, involving an annual leasing payment of $1 million. He questioned the reduction in revenue from the initial $3.3 million annually agreed upon with Park Agro-tech.

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Mr. Solomon further added that the problem of Ghana’s importation needed to be tackled locally to reduce the country’s importation of sugar. Mr. Solomon argued that he does not agree with the trade minister’s response that he is thinking of leasing the factory, that statement makes him treat the whole situation as his own and not the government of Ghana. Mr. Solomon added that there is a problem of transparency and accountability.

“I’m very surprised with the new development that’s coming out, We went for a loan from the Indian Exim Bank, we borrowed $35 million. So, if you are going or judging by what K.T Hammond is saying that we are going to pay, [then ] we are going to receive $1 million a year… It means after the 15 to 20 years, we will not have even gotten enough to pay back the loan.”

Mr. Solomon Owusu Prominent Member of the Movement for Change

READ ALSO: Ghana’s Government Borrows GH¢115.77bn in Early 2024 as Interest Rates Plummet

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Tags: Hon. Alhassan Sayibu SuhuyiniKomenda Sugar FactoryMOVEMENT FOR CHANGEMr. SolomonNDC
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