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28.10.2002 Business & Finance

Gov't Threatens Investors

By Business and Financial Times
Gov't Threatens Investors
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Government has threatened to revoke the offers made to Messrs Mar D’Gold (an American company) and Bebstak, a local investor for failure to meet the payment terms for the purchase of Ghana Consolidated Diamonds (GCD) and Pomadze Poultry Farms Enterprise respectively. The threat comes three days after the two investors failed to meet government’s two-week deadline to complete their payment. With the two-week ultimatum over, the Divestiture Implementation Committee (DIC) board will convene an emergency meeting to deliberate upon the next line of action, which could possibly be revoking the offer or sounding the last warning. Mar D’Gold has bided US$17 million, as purchase price for the acquisition of assets of GCD and was to make an initial payment of US$10 million. The balance was also due to be paid on July 16,2002 but the investor has not met any of the payment terms. A letter signed by Dr Johnson Manu, Executive Member of the Management Team of Mar D’ Gold Corporate copied to the DIC, committed the company to pay the balance of US$ 7 million within one year. Bebstak on the other hand was to pay 10% of the purchase price of US$2.4 million by August 12, 2002 and settle the balance on November 11, 2002. Though the local investor appears to be still within the time frame, it had failed to meet the payment terms per the offer letter. Government is said to be deeply upset about this development and is working frantically to compel the investors to pay up their debts.

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