Ghana defends takeover of diamond company

The Ghanian government has defended its decision to take over the Great Consolidated Diamonds Ghana Limited (GCDGL) from a local private investor, Jospong Group of Companies.
Jospong, which took over then Ghana Consolidated Diamond Company (GCD) in 2011 under a privatisation deal and renamed it GCDGL, had agreed to invest $100 million over five years to produce 1-million carats every year over the period.
Director-General of the State Interests and Governance Authority (SIGA), Stephen Asamoah Boateng, was quoted by Ghanaweb as saying that Jospong had only paid $3.8 million.
“The fact that you are Ghanaian company does not mean that if you are not performing we should leave you to destroy [the agreement],” said Boateng.
He said GCDGL may soon go public.
“We are not selling, we are going public…going on the Ghana Stock Exchange is an option,” said Boateng.
“We have been given a number of options and those options have been put before Cabinet. Until [a decision is taken] the details I will reserve for now.”
Jospong has approached the court to challenge the takeover.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished