The Chief Executive Officer of Volta Aluminium Company Dr. Charles Mensah has warned that "creating a controversy" around the deal ratified by Parliament could force the foreign buyers to opt out.
Dr Mensah who has been a promoter of International Aluminium Partners, the consortium mentioned in the deal document to be acquiring the 70% stake, maintained the agreement was legitimate and the best so far.
“It is a boardroom matter. We cannot sit here and discuss the intricacies of a contract to a point where a contract signed is just laid out there in public for people to see and names of people who signed to be exposed, we don’t do that.”
“If you have a partnership of about three companies [including VALCO] and one says …I want out, this is not an issue to fight about,” he stated.
Dr Mensah maintained that contrary to reports of a non-existent deal, the agreement still stands, adding that only one of the partners in the consortium had earlier filed a lack of interest.
He disclosed that Norsk Hydro, the Norwegian partner, had earlier called to express their intension to opt out of the deal. “They called me and said, look, we would want to step aside,” he insisted.
“What will kill the deal is if we Ghanaians create a controversy around the deal and then everybody would walk out because nobody wants controversial situations at this time in the history of the world economy,” he said.
The Reuters news agency on Friday reported that both foreign companies mentioned in deal document denied they had any plans to buy any stake in VALCO.
“We have not signed any agreement regarding VALCO and we do not have any plans to invest in Ghana,” a spokesperson for Norway's Norsk Hydro told Reuters in Oslo.
A spokeswoman for Brazil's Vale also told Reuters in Sao Paolo that "there are no such plans for this."
The VALCO deal was on Friday cleared by acclamation despite earlier objections by some minority members of the house.
The trade minister who took the document to Parliament for approval has been silent on the matter.
VALCO with a capacity to produce 200,000 tonnes of aluminium a year has cut back on production since March 2007 due to power shortages caused by low water levels in the Volta hydropower dam.
Ghana's trade ministry said in a memorandum to parliament that Norsk Hydro and Companhia Vale do Rio Doce had agreed on August 8 to buy the VALCO stake and invest $4.7 billion in Ghana's aluminium industry.
Under the terms published by the ministry, Vale and Norsk Hydro would pay an initial $25 million to the Ghana government, with the remainder due only when VALCO resumed production with two pot lines running and power guaranteed from the Volta dam.
National Democratic Congress spokesperson and MP for Tamale South Haruna Iddrisu had described the deal as a “giveaway” because it would take some time for VALCO to run two pot lines. [Listen to attached audio]
Story by Fiifi Koomson
[The Reuters news agency contributed reporting]
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
Revoking Nyaho-Tamakloe’s ‘founding member’ status likely to be considered at NPP NEC meeting – JFK
9 minutes -
Wontumi arrest: Posterity will judge you – Afenyo-Markin tells NDC
31 minutes -
Wontumi arrest: JFK condemns Dr. Nyaho-Tamakloe’s ‘Where is NPP Chairman’ comments
36 minutes -
Bawumia calls for calm amid Wontumi’s detention
44 minutes -
Two dead, others injured in Juaso-Nkawkaw Highway crash
50 minutes -
We’re disappointed we didn’t see Wontumi – Dr Bawumia
1 hour -
GH₵50m bail deliberately set to block Wontumi’s release – Bawumia
1 hour -
Ashanti Peace Council urges stakeholders to uphold law and protect national peace
1 hour -
Equipping future healthcare professionals: Cassona Global, Mindray provide free practical training for ATU students
1 hour -
Bawumia, Minority Leader, granted access to Wontumi as tensions mount over detention
2 hours -
World Menstrual Hygiene Day: Terry Yegbe Foundation and Groomdatgirl champion menstrual health education at Horti EP Primary
2 hours -
Watch how Bawumia was forced through violent scuffle as NPP supporters clash with Police
2 hours -
NPP currently has no leadership; where is the Chairman? – Nyaho-Nyaho Tamakloe quizzes over Wontumi arrest
2 hours -
Tensions rise as NPP supporters besiege NIB headquarters over Wontumi’s transfer
2 hours -
Eleven Wonders edge RTU to seal Ghana Premier League return
2 hours