Moves by the Agricultural Development Bank (ADB) to diversify the nation's biggest and only surviving cotton company, Ghana Cotton Company Ltd (GCCL) has sparked anxieties among workers of the company, as they suspect Olam Ghana Limited, a company embroiled in tax evasion issues may take over.
The fears of the workers were also grounded on the possibility of a flawed takeover, just like the previous takeover in 2004 by GhanAmer Farms Company (GhanAmer), the Atlanta-based company which was expected to inject over ¢4trillion ($45million) to support GCCL's operations but rather ended up transferring GCCL's $167,000 accruing from two seasons' operations to the GhanAmer's USA accounts without paying a farthing.
That move almost brought the only surviving Agro-industry in northern Ghana to an abrupt collapse and affected about 100,000 families who depended on over 40,000 cotton farmers in the three northern regions. This figure excluded the 350 staff members who were in the employment of the GCCL.
The ADB management invited bids through an advert in the December 13, 2006 edition of a national daily for a fresh divestiture, giving a limited time of nine (9) days for tenders, with a warning that late entries would be rejected.
The workers, as a result of their experience from the earlier divestiture that went awry, see recent moves by Olam, one of the bidders as signals of Olam being favoured in the process. Olam had been consistently poaching GCCL workers, showing keen interest in the affairs of GCCL and buying most of its cotton.
The paper learnt that Olam was known for agro-trading but not cotton production.
Workers, who are observing proceedings in anxiety but are tight-lipped for fear of reprisals have confirmed that other reputable cotton producing and/or trading Companies, including Dunavant, Kowen (GH) Ltd, A.R.B. Investment and Wienco (GH) Ltd are interested and had in fact also put in bids.
Some of the workers told the paper that even though normally the first offer should naturally go to the bidding companies who are shareholders, as things stand now, none of the shareholders with proven track record, not even Wienco Ghana Limited, which is a minority shareholder have slim chance as OLAM is already criss-crossing the entire operational area of the company.
One of the workers told The Chronicle that "On behalf of my poor people in Bunkuru, whose lives have for some time been built on Cotton, I wish to appeal to H. E. the President to swiftly intervene to level the playing field to ensure that farmers, staff and indeed the industry and all stakeholders get a fair deal and to ensure that the reported deals of OLAM are investigated and appropriate action taken."
The Managing Director of ADB, Mr. E. Boakye-Agyemang, in an interview responded that there was no cause for alarm.
"We diversified it but we have stopped. We are not going to do it again because the company is completely in the hands of ADB. ADB has 78% shares," he added.
He continued that though ADB advertised for bidding, it had not made any commitments yet, adding that no decision had been taken on the bidders as of now.
Mr. Boakye-Agyemang was emphatic that the advertisement was to identify how soon investors would show interest in GCCL when they want to diversify it.
He noted that they might consider selling part of its interests but they were not in a hurry to take a decision because the most important issue was that ADB was still managing GCCL.
He stated that ADB could not continue to run the bank together with the cotton company so in future they might sell part but again taking into consideration the Presidential Special Initiative on cotton it would be better to maintain it and help the government achieve its goals.
The GCCL board chairman explained that in the first deal with GhanAmer, which he was not part of, the intention was to get a strategic investor who was interested in pumping money into the company hence their refusal to hand over ADB shares to the minority shareholders who might be interested.
He said in the present divestiture they have not yet decided on whether to give their shares to the minority shareholders since the divestiture might not even take place.
When asked whether they had been able to retrieve the monies that were in the custody of GhanAmer, he emphasized that although he was not part of the deal he was aware that the management of GCCL had made efforts to collect the money.
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