Government has confirmed that processes have begun for the “official” liquidation of the assets of the West African Mills Company Limited (WAMCO), which is reeling under huge debts.
The cocoa processing company owes most of its suppliers, including its 40percent shareholder, Ghana COCOBOD, huge sums of monies.
COCOBOD said in June that the company owes it as much as US$4.9 million in cocoa beans supplied over the years.
But COCOBOD rejected what it said was an attempt by majority shareholder, Walter Schroeder of Germany, to embark on “private” liquidation.
Deputy Finance Minister, Ato Forson, however told parliament yesterday that the board of the company has now begun the official liquidation, which involves a court process.
Ato Forosn was answering a question by the MP for Takoradi, Kwabena Okyere Darko-Mensah, who wanted to know when the company will re-open after twenty-eight months of closure.
“Whether or not the Takoradi based cocoa processing plant will be in operation again will depend on the outcome of the liquidation process,” Ato Forson said on the floor of parliament.
WAMCO is a Joint Venture Agreement (JVA), signed in 1992, between Ghana Cocoa Board and Walter Schroeder of Germany, of which the COCOBOD is a minority shareholder (40percent) whilst Walter Shroeder holds the remaining 60percent.
In June, COCOBOD issued a press statement advising the general public to disregard an advert by the Fidelity Security Limited (FSL) on the sale of the assets of the company.
The company has a seven-member board of directors, with four appointed by Walter Schroeder GmbH and three appointed by government.
Challenges that have confronted WAMCO which operates on a Public Private Partnership, have adversely affected production levels for some time now.
In total, some local companies reportedly owe the Ghana Cocoa Board over US$131million, which it has vowed to retrieve to help boost crop production.
Among the companies owing the Board are Cocoa Processing Company, West African Mills Company (WAMCO), Plot Enterprise, Afro Tropic, and Real Products.
COCOBOD has over the years been supplying cocoa beans to local processing companies on credit at a discount of 20 percent, targeted at growing local businesses and creating employment.