A Senior Metallurgist at the Volta Aluminium Company (VALCO), Samuel Andoh, has dismissed claims that workers staged Monday’s demonstration against the government’s proposed equity investment in the state-owned aluminium producer, alleging that many of those who participated were hired to protest rather than being VALCO employees.
The demonstration, organised by the Industrial and Commercial Workers’ Union (ICU-Ghana), was held over concerns about the alleged privatisation of VALCO. However, Mr Andoh insisted that the government is not selling the company but is instead seeking an equity investor to revive its operations.
Speaking on Gold Morning Conversation, Mr Andoh said VALCO’s financial and operational challenges date back to the acquisition of the company by the Kufuor administration, adding that successive governments have struggled to attract strategic investors capable of modernising the plant.
“They have started, and the process has been going smoothly. Even though the process has not ended, people are just peddling falsehood,” he said.
According to him, the Ministry of Lands and Natural Resources delegated a representative to brief VALCO’s management and staff on the government’s plan to bring in an equity investor to inject capital, modern technology and technical expertise into the company.
Mr Andoh said opposition to the proposal is difficult to understand, explaining that a ministerial committee established last year, which included two representatives from VALCO, reviewed the company’s financial and operational position before concluding that equity investment offered the most viable path to restoring the company’s fortunes.
He further argued that there had been no resistance to the same proposal under the previous administration and questioned why it had now become contentious.
Highlighting the company’s financial difficulties, Mr Andoh claimed VALCO records annual losses of about US$20 billion and is unable to fully meet its electricity obligations, leaving government to absorb the outstanding costs.
He said the company requires more than US$700 million to modernise its ageing technology, procure raw materials and rehabilitate the smelter, an investment he believes can only be secured through a strategic equity partner.
He criticised proposals for debt financing, arguing that borrowing would merely keep the plant operating in its current state without addressing its long-term competitiveness or financial sustainability.
Mr Andoh also challenged claims by the Board Chairman that VALCO recorded a US$3.19 million profit, insisting that the company instead posted a US$0.7 million net loss. He further maintained that operations have deteriorated under the current administration, stating that the number of operational aluminium production cells has declined from 126 to 93, which he described as evidence of the company’s continuing operational challenges.
Story by Ruth Quaye
