The Jospong Groups of Companies (JGC) has refuted claims by government that the company failed to fulfil its financial obligation of paying USD 17 million to the Divestiture Implementation Committee (DIC).
According to them, substantial investment had been made in an attempt to revive the mine to make it commercially viable since they took over in 2011.
“Subsequently, Great Consolidated Diamonds Ghana Limited (GCDGL)has also focused on meeting the necessary regulatory, engineering and restructuring works necessary to achieve this objective,” it said
These were contained in a press statement issued and signed by the Communication Directorate of JGC yesterday, in Accra.
The statement noted that, following the acquisition of the mine, GCDGL and the JGC had made several attempts to make the mine commercially viable, albeit not yet entirely successful.
This, it said, led to series of communication with the DIC with the aim of reaching a mutually satisfactory direction on how to proceed with same.
“Despite these attempts, the government acting through DIC by a letter dated April 9, 2019 purported to abrogate the agreement between the parties without following due process,” the statement noted.
“GCDGL through their lawyers drew the attention of DIC’s lawyers to the illegality of the intended action of the DIC, and proceeded to issue a writ of summons and an accompanying statement of claim to protect the interest of the company,” it added.
The statement indicated that, it was unfortunate that government after filing a Statement of Defence in the aforementioned suit proceeded to take over the management of the company without recourse to the law and tenets of good governance.
It added that,in the development plan to revive the mine to full scaleoperations, numerous feasibility studies and development activities amounting to more than USD20 million.
“The GCDGL and its strategic partners have reached an advanced stage to execute a USD50 million investment to operationalise the mine of which a memorandum of understanding has been signed,” the statement said.
It stated that, the action by the State Interest and Governance Authority (SIGA) was illegal, unconstitutional and regrettable in a nation that was governed by the tenets of democracy.
The statement reiterated the fact that the matter was presently before court of competent jurisdiction hence, would wait for the final determination of the matter.
It therefore assured all its stakeholders that the company was doing everything possible to resolve the matter using the appropriate legal remedies.
BY TIMES REPORTER
