31.05.2005 Business & Finance

Blue Mont to make representation to SEC

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Accra, May 31, GNA - Mr. Ganesh Venkatraman, Executive Chairman of Blue Mont Trading (Ghana) Limited on Tuesday hinted that the company would make representation to the Securities and Exchange Commission (SEC) to correct the negative impressions about the company.

However, the representation would not seek the reinstatement of the Initial Public Offer of the company's shares, which the SEC cancelled on Monday.

"As far as I am concerned, the public offer is closed," Mr Venkatraman told a crowded press conference in Accra.

Blue Mont, an agricultural processing and exporting company based in Tamale was in the process of raising 22.5 billion cedis through the Ghana Stock Exchange.

But SEC cancelled the offer due to what it said were unresolved "contentious issues" about the Company.

The issues included the confirmation of the current business address and evidence of changes in the address of Blue Mont Trading UK Limited since its inception and the correct date of incorporation of the Company.

The company was also to provide the correct dates on which Directors joined the Board, disclose the audited financial statements for the period 2001 to date and provide information on the relationship between Blue Mont and ABRA World Incorporated and the financial relationship that existed between the two companies.

It was also to state only the Directors that had filed at the UK Companies House and submit a notarised statement from Mr Ganesh Venkatraman on his alleged conviction.

There were also further concerns about the Tax obligations of the company.

But Mr Venkatraman told journalists that the company was not in the position to provide any more information that it had already given to the SEC.

"We have gone on our way to provide and make available adequate information on Blue Mont. I don't know what else is there to say," he said.

Mr Venkatraman said the company had fulfilled all its tax obligations to the Internal Revenue Service and was given a tax clearance certificate.

However, he said, the IRS issued the company with a letter of provisional assessment of taxes amounting to about 73 million cedis on Friday, which the company's accountants were working on. Mr Venkatraman said despite the cancellation of the offer he bore the SEC no qualms since they were performing their duties as regulators.

"I am however, not happy with the twisting facts in the media. It is fine to make allegations but not to go personal," he said.

Mr Venkatraman said the move would impact negatively on development in the North.

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