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19.08.2011 Business & Finance

Let court decide future of STX housing project - Avedzi

19.08.2011 LISTEN
By myjoyonline

As the power play and the board room wrangling between STX Korea and its Ghanaian partners deepen, the hopes of security personnel for a decent accommodation lie in a court verdict.

Chairman of the Parliament Select Committee on Finance, and National Democratic Congress MP for Ketu North James Avedzi told Joy News the court would have to rule on the strained relationship between the Ghanaian and the Korean partners before the future of the project could be guaranteed.

Security personnel are expected to be beneficiaries of the 30,000 housing project at a cost of $1.5 billion but its execution has been problematic from the outset.

This week, the project has been dogged by threats of dismissal coming from partners.

On Thursday a note at the premises of the STX Company entrance read: “Dear Guest, on August 18, 2011 the Board of STX Engineering and Construction Ghana Ltd has approved a resolution to remove Mr B.K. Asamoah from the Chief Executive Office and Mr George Padi from the position of Deputy Chief Financial Officer. They are not working in the office anymore.”

A day later the supposed sacked CEO of STX Ghana, Mr B.K. Asamoah issued a counter statement in which he severed all ties with his Korea Partners.

The statement said: “Any actions taken by STX Construction (Korea) or its agents in respect of the operations of STX Engineering and Construction Limited are of no consequence.”

It however assured that the project is still on course.

The Chairman of the select committee on Finance James Avedzi who presided over the deliberations in Parliament, described the recent board room wrangling as “interesting.”

“It bothers on corporate governance and also an issue that relate to Board room wrangling,” he said.

According to him the issue is now before court and a verdict is necessary to provide a clear path for the execution of the project.

“It is for us to wait for the court to determine the position. If the court decides and concludes that the partnership agreement still holds then there will be nothing that affects the agreement that we have passed in Parliament but if the court should conclude that one of the partners is not going to be part of the company again then government will have to say what will be the implication of the agreement."

He reckoned if the partners severe ties, there will be the need for Parliament and government to take a re-look at the project.

Member of Parliament for Manhyia, Mathew Opoku Prempeh argued funding for the project will be problematic because no serious financial institution will be ready to loan its money to a company whose leadership is at each others' throat.

He said it does not lie within any of the two partners to, by word of mouth, severe ties but would have to purchase the shares of the other.

The company has shareholding arrangement of 90 per cent to 10 percent for the Koreans and Ghanaians respectively. He argued the Koreans can proceed to buy the 10 per cent shares of the Ghanaians if they so wish.



Story by Nathan Gadugah/Myjoyonline.com/Ghana

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