The Divesture Implementation Committee (DIC) has abrogated its agreement with the Great Consolidated Diamonds Company Limited (GCDCL), which took over the former Ghana Consolidated Diamonds (GCD) Mine in Akwatia.
This was contained in a letter from the DIC’s lawyers, Cardinal Law Group, dated April 9, 2019, and addressed to the Managing Director of the GCDCL. The reason assigned for the abrogation was the Company’s persistent failure in settling its indebtedness arising from the non-payment of the balance due from the divestiture of the assets of GCD to GCDCL.
The letter indicated that as of March 31, 2019, the indebtedness of the Company to DIC stood at US$ 18.844,014.45.
At a press conference at Akwatia where this information was made available to the media, Mr David Kwarshie, the General Secretary of the Akwatia Development Association, commended the Government for finally listening to the cries of the people of Akwatia.
Ghana Diamond Company was renamed Great Consolidated Diamond Ghana (GCDG) in the year 2011 after Jospong Group bought the mine for $17.5million paying $3.1 million upfront but has since failed to revive the mine or pay its outstanding debt of $14.3 million.
The over 50,000 employees have also not received their severance pay.
According to reports, four companies put in their bids for Ghana Diamond Company in the year 2011 but the only Ghanaian company, JOSPONG Group of Companies, that offered $17.5million won the bid in the name of promoting Ghanaian ownership of Ghanaian resources.
However, at the Presser, The Association also expressed gratitude to the Member of Parliament of Akwatia, Madam Mercy Adu Gyamfi, for championing the crusade for a change in the Mine since the GCDCL had woefully failed to make it a viable venture despite the “sweet promises.”
