The Minister of Trade and Industry, Kobina Tahiru Hammond, has addressed payment concerns regarding the lease of the Komenda Sugar Factory to West Africa Agro Limited, an Indian-based firm for almost twenty years.

He clarified that Ghana will receive a yearly rent payment of over one million dollars from the company, rather than paying them.

This clarification comes after Yusif Sulemana, the Ranking Member on the Trade and Industry Committee, expressed concerns that Parliament was not informed of the decision and alleged that the company would be paid $50,000 monthly for management services. 

Mr Sulemana raised questions about the transparency of the lease agreement.

Speaking on Citi FM on Friday, August 2, the Trade Minister dismissed Sulemana’s claim. Hammond stated that West Africa Agro Limited will pay Ghana an annual rent of over one million dollars for the duration of the lease. 

He emphasised that there are no monthly payments from Ghana to the company for management services.

Mr Hammond further explained that this yearly payment will be made consistently throughout the lease period, which includes an option for extension if the company decides to continue its operations at the factory. 

He assured that this arrangement is beneficial for Ghana, ensuring a steady income from the lease.

“So at the commencement of the agreement to let them lease it, they would be paying us a yearly rent. The company will be paying us, I’ve said that it is over a million dollars. I’ve agreed on a figure which is, for now, a little more than one million dollars a year.”

“They will pay us for the year that they’ll be leasing it. At the end of it, if they are still interested, they could extend the period that they leased and keep on paying us the year’s rent until they give it back to us," he insisted.