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The management of Ghana Bauxite Company Limited (GBC) has strongly denied allegations regarding the sale of the company to Ofori-Poku Company Limited (OPCL).
Clarifying recent inaccurate assertions by some government officials, it said the acquisition of GBC by OPCL was carried out transparently, adhering to all regulatory requirements and due diligence standards.
“In 2010, the Government of Ghana, as 20% shareholder, had the opportunity to acquire the 80% shares in GBC from Rio Tinto but declined, leading to the sale of shares to BOSAI Minerals China. Consistent with this earlier position, the government in 2022 once again chose not to exercise its right of first refusal. OPCL lawfully acquired the 80% stake from BOSAI Minerals on the same terms as offered to the government, ensuring business continuity and commitment to the company’s long-term growth and development,” a press statement by GBC’s Corporate Affairs Department read.
The release was necessitated after member of the Operation Recover All Loot (ORAL), Martin Kpebu, in a Facebook post, called for a forensic probe into the sale of Ghana Bauxite Company Limited to Ofori-Poku Company Limited.
However, the company, emphasising its commitment to transparency and ethical business practice, said the claim that GBC was valued at $12.5 million in 2022 and is now worth over $1 billion is misleading and lacks factual basis.
“Company valuations fluctuate based on investment, operational improvements, and market conditions. Since acquiring GBC, OPCL has made significant financial investment and strategic interventions that have enhanced efficiency, increased output, and strengthened the company’s market position. These improvements have naturally had an impact on the current valuation,” it said.
It further debunked the assertion that an individual who was involved in the valuation later became the CFO of OPCL, indicating that GBC, under OPCL’s leadership, operates with a professional management structure, with all key appointments made based on competence and industry experience.
“OPCL is a legally registered company with a clear and well-documented ownership structure that is publicly verifiable under Ghanaian law. Any suggestion that it is secretly owned by a financier of a political party is false, misleading and intended to create unnecessary suspicion in the minds of the public.
“The acquisition was purely a commercial transaction, driven by business strategy, financial viability and investment potential. The process adhered to all regulatory requirements and there was no political influence or interference at any stage,” it emphasised.
Responding to claims of insider trading, GBC acknowledged that OPCL’s owner was a board member of GBC at the time of acquisition, but the suggestion of insider trading is entirely misleading.
“Board membership does not equate to insider trading, particularly in a private company like GBC. It is standard corporate practice for shareholders – including the government of Ghana, which was also represented on the board – to have access to relevant financial and operational information…There was no insider trading, conflict of interest, and no impropriety, only lawful, commercial sound business transaction. Any attempt to suggest otherwise is uninformed and misleading,” GBC emphasised, while urging the public to disregard misleading claims and trust that GBC’s growth is a result of strategic planning, investment, and sound management.
A Daily Guide Report