|
NDC asks Government to
suspend agreement on VALCO
Accra, Oct. 31,
Ghanadot/GNA-The largest Minority National Democratic
Congress (NDC) on Friday asked the Government of Ghana to
suspend the agreement for the proposed sale and purchase of
70 per cent issued and fully paid up shares of the Volta
Aluminium Company Limited (VALCO).
The suspension, the NDC said in a release, is to allow for a
proper determination of the financial worth of the company
by an independent valuer.
Under the present agreement, there is a proposal to consider
the sale and purchase of 70 per cent of the issued and fully
paid shares of VALCO for US$175.5 million.
Signed by Mr. Haruna Iddrisu, Minority Spokesperson on
Communications, the release expressed the concern of the
Minority about the clarity and effect of certain provisions
of the agreement, which the Minority viewed as inimical to
the economic interest of the country and sustenance of the
Volta River Authority (VRA) and the future of the aluminium
industry in Ghana.
The release referred to Memorandum to Parliament on the
Agreement, which obliged the VALCO to enter into a binding
and irrevocable Power Purchase Agreement/ Electricity Supply
Agreement with the VRA, which should also deliver a certain
quantum of power based on certain thresholds in term of
tonnes of aluminium for a period of four years.
The Memorandum, the release said also referred to the terms
of agreement for a consortium to make an initial payment of
US$25 million within 15 working days from the execution of
agreement and upon approval of the agreement by Parliament.
The outstanding amount of US$150.5 million is to be paid
within 45 working days after the VALCO smelter has commenced
production with two pot lines in normal operation, the
execution of the transfer of shares by the Government,
shareholders agreement between the shareholders of the
company and the delivery of the share certificate signed by
VALCO in favour of the consortium.
The Minority said it viewed the building of consensus on
“this major economic decision as imperative and the way
forward for national cohesion and peaceful development of
the country.
“The indecent haste with which the government wants to push
away this very important transaction at the last days of
this Parliament and the Administration is mind-bugling,” the
release added.
Meanwhile, Mr Abraham Ossei Aidooh, Majority Leader has
announced that the date for Parliament to rise has been
rescheduled from Friday November 7, 2008 to Tuesday November
11, 2008.
GNA
|
