The collapse of the once-promising Buipe Sheanut Factory has drawn the ire of President John Dramani Mahama, who has directed a full audit into the mismanagement of the US$10 million agribusiness venture.
The factory, established in 2012 as a joint initiative between the Government of Ghana and Sysgate Brazil Limited, was meant to process sheanut products and provide employment, particularly for women in the Savannah Region.
However, today, the factory stands defunct, with its capital and resources allegedly squandered under the erstwhile Nana Addo-led administration.
According to President Mahama, when his government left office in 2016, the Buipe Sheanut Factory was fully operational, with sufficient capital and raw materials to sustain production.
However, the change in administration allegedly brought disastrous consequences for the facility.
“The factory was running well. It had capital, it had stock of sheanut, [and] it was processing when the change of government happened.
“The new administration, new management were sent to the factory. They did not only spend the capital but [also], the stock of sheanut that they could have processed to make more money.”
President John Dramani Mahama
Rather than maintaining the factory’s productivity and ensuring its sustainability, he alleged that the new management engaged in actions that led to its downfall.
According to him, they sold off the existing stock of sheanuts instead of using it for production, and worse still, they depleted the factory’s available funds.
The President further claimed that instead of reinvesting the proceeds to keep operations running, the managers sold the sheanuts to another factory, collected the revenue, and spent those funds as well.
With both the working capital and raw materials exhausted, the factory was left with no means to continue operations. As a result, it was forced to shut down, leading to mass layoffs of workers.
He described this as a prime example of financial mismanagement in handling public resources, emphasizing that such reckless decisions serve as a lesson in what not to do when entrusted with state assets.
Call for Accountability and Reform
President Mahama further explained that the call for an audit is not merely a procedural step but a critical measure to uncover the extent of financial mismanagement and hold those responsible accountable.
He stressed that the state cannot afford to overlook such reckless handling of public resources, as it ultimately impacts the economy and the livelihoods of ordinary citizens.
According to him, if the factory had been a private entity, those in charge would have exercised far greater caution in managing its finances and operations.
He argued that the blatant mismanagement seen in this case underscores a broader issue of poor accountability in public institutions, where resources are often squandered without consequence.
“I believe that if that factory was private, it wouldn’t have been handled the way it was; it would still be running.
“So I agree with the secretary that we must audit that factory and identify those who are responsible for causing this financial loss to the state and bring them to book.”
President John Dramani Mahama
The demand for accountability underscores Mahama’s broader concerns about the mismanagement of state resources under the current administration.
With Ghana facing economic challenges, issues of financial prudence and transparency in managing public institutions have become pressing matters.
The Buipe Sheanut Factory was envisioned as a game-changer for the sheanut industry, offering value addition to a product that has long been a source of livelihood for many rural women in the Savannah Region.
Its collapse has not only affected employment but also disrupted an entire value chain that could have boosted Ghana’s agricultural economy.
The factory’s closure is part of a troubling pattern where state-owned enterprises fail due to mismanagement, a phenomenon that has continually hindered Ghana’s industrial growth.
Calls for a full audit and accountability are crucial to preventing such instances in the future and ensuring that investments into strategic industries are not wasted.
As Mahama’s directive takes effect, many will be watching closely to see whether the audit will lead to concrete action against those responsible.
With Ghana’s economic future at stake, public accountability in such cases is not just necessary but imperative.
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