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.
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.
Latest Stories
-
Cash Waterfall Mechanism report shows significant non-compliance with formula for revenue allocation – Report
8 mins -
Prison officer injured in clash with soldiers in Bawku
12 mins -
SSNIT reserves projected to hit zero in 12 years – ILO
16 mins -
Prestigious Nigerian school closed over bullying reports
21 mins -
Funny Face failed to perform at my show after taking money – Parrot Mouth
27 mins -
CAFCC: Sports Minister to offer Dreams FC a ‘surprise’ package before Zamalek clash
38 mins -
CAF awards 3-0 win to RS Berkane, after Algerian customs confiscated their kits
53 mins -
AgriTech challenge pro holds first pitch
58 mins -
UNIDO commits to improving local rice standards
59 mins -
Suleja prison: 108 inmates on the run in Nigeria
1 hour -
We object to government’s plans to make BEST sole off-taker of Sentuo Oil Refinery – CBOD
1 hour -
Burkina Faso army massacred 223 villagers in revenge attack – HRW
1 hour -
Lebanese Community awards ¢100K in scholarships to 21 students at UniMAC
1 hour -
Germany detains alleged Nigerian mafia members
1 hour -
Manhyia Palace hosts royals, dignitaries from Ghana and beyond at special Awukudee
1 hour