Minority members on the Trade and Industry committee have threatened that the next National Democratic Congress (NDC) government will cancel the contract between the government and West Africa Agro-Tech Company (WAATCO) if proper procedures are not adhered to.

The Minister for Trade and Industry, K.T. Hammond recently announced a 20-year agreement with WAATCO to manage the Komenda Sugar Factory, which has been inactive since its completion.

The ministry claims the deal will help revive the factory. However, it has faced criticism.

• Read also: Government has no plan to operationalize Komenda Sugar Factory – Former Board Secretary

Speaking at a press conference in parliament, Ranking Member on the Trades committee, Yusif Sulemana first alleged that the agreement includes a $50,000 monthly service fee for WAATCO, plus a share of the factory's profits.

“I will give you a copy of that agreement. He is supposed to pay 50,000dollars per month to WAATCO. That is not even enough. That doesn’t include the expatriate’s fees, this is just the management fees that he is going to pay them on monthly basis and then any profit that is made, they are going to be paid some percentage on the profit to be made.”

• Read also: Komenda Sugar factory to be leased to Indian firm for 15 years – K.T. Hammond

According to Mr Sulemana, the government failed to disclose the full terms of the contract and failed to bring the agreement to Parliament, noting that the factory was originally intended to reduce sugar imports.

Komenda Sugar Factory: NDC's Yusif Sulemana has alleged that the government is going to pay West Africa Agro-Tech Company (WAATCO) a service fee of $50,000 as well as profit sharing with the company. #JoyNews pic.twitter.com/5n2DVVnPOd

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“The worse of it, is the fact that the minister won’t even take his time. He won’t take his time and read the very agreement that he himself has signed with the people. You said you have signed an agreement with them for ten years. They just started and they have just shown us that they have imported some semi processed sugar and they have refined that sugar.”

“Now all of a sudden you are talking about leasing it out for 15 to 20 years. So what has happened to the existing agreement for which you have even refused to bring to parliament?” he questioned.

According to Mr Sulemana, the agreement was not presented to Parliament because WAATCO is a foreign company.

He explained if government secured a $35 million loan and an additional $24 million approval, then any decisions involving foreign entities should have been reviewed by Parliament.

“Remember the NDC was accused of not coming to parliament in matters of this nature so one would have thought they would not repeat those mistakes that they claim we had made. They never came. We have called you here to serve as our mouthpiece. Take this information everywhere in this country and beyond. ”

He stated that the next NDC government will not hesitate to cancel the contract if the Trade Minister does not submit the deal for parliamentary approval.

“Any foreign company that is going into any contractual agreement with the minister, if there is no due process, we can only assure them that the NDC will abrogate the contract. When that happens, they shouldn’t say we are causing financial loss to the state. Once you don’t follow the laws of the state and we are abrogating it, we have every right to do it and no impression should be created that Ghana is not a destination for investment. If you come and you respect our laws, you are going to do business and do it well,” he said.