President Mahama orders audit into Buipe sheanut factory

President John Dramani Mahama has directed an extensive audit of the Buipe Sheanut Factory, which has, unfortunately ceased operations.

During his address, he expressed grave concerns over the mismanagement of the facility, asserting that the previous administration, along with the management of the US$10 million agribusiness project, misallocated and squandered funds intended to ensure the factory's sustainable operation.

The Buipe Sheanut Factory, which commenced operations in 2012, was established through a strategic partnership between the Government of Ghana and Sysgate Brazil Limited. Its primary objective was to enhance the value of sheanut products, while simultaneously generating much-needed employment opportunities in the Savannah region. This initiative was particularly geared towards empowering women who are actively engaged in sheanut harvesting.

President Mahama criticized the Nana Addo-led administration, which assumed power in 2016, for not only depleting the factory's initial capital investment but also for liquidating the stock of sheanuts that could have been processed to yield significant revenue for the facility. He emphasized that the loss of these resources has had detrimental effects on local job creation and economic development.

During a recent courtesy call with members of the Ghana Cocoa, Coffee, and Sheanut Farmers Association (COCOSHE), President Mahama underscored the necessity of conducting a thorough audit. He urged that this investigation should pinpoint those accountable for the operational failures and financial mismanagement of the factory, ensuring that appropriate measures are taken to hold the responsible parties liable.

“…The factory was running well. It had capital, it had stock of shea nut, 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 the stock of shea nut that they could have processed to make more money.

“They sold to another factory and collected that money and spent that one too. After spending the capital and spending the stock of raw material, there was nothing else to spend, and so the factory had to shut down and lay people off. It is an example of what not to do when you manage public resources.

“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,” he stated.