Volta Star Textiles assured of government support

Volta Star Textiles assured of government support
Source: Ghana | Myjoyonline.com | Joy Business
Date: 15-06-2017 Time: 04:06:24:pm

The Volta Regional Minister has assured management and staff of Volta Star Textiles (VST) of government’s commitment to revive the company.

Dr Archibald Letsa said government has funds for "distressed" companies and was earnest about its industrial policy.

The Regional Minister said this during a working visit to the company where he called for adherence to strict financial principles and good corporate governance by all institutions to attract government support.

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The Acting Managing Director of VST, Divine Vigbedor, said the once vibrant company was in debt and is underperforming.

He said the company made a monthly profit of GHC1,492,000 million out of which raw materials took a chunk of GHC863,000; salaries and other miscellaneous, GHC444,000 and GHC409,000 for power.

Mr Vigbedor said apart from the company’s old debts, it was accumulating a monthly debt of about GHC363,000 with threats coming from the Electricity Company of Ghana (ECG) to cut power supply.

He said the company was also faced with periodic labour agitations due to accumulated unpaid salaries.

Mr Vigbedor said last year government took a loan of GHC6 million to buy raw materials to help revitalise the company but the money was used to pay some salaries and ECG arrears.

He said the company has the machines, to produce at full capacity of 1,200,000 yards a month instead of the current 452,925 yards it was producing with a labour force of 1,200.

Mr Vigbedor said the company's main challenge was inadequate funds to clear debts and buy raw materials to operate.

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