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0 The Ghana Bauxite Company (GBC) has dismissed allegations of financial malfeasance in the purchase of eighty percent shares of the company by Ofori-Poku Company Limited (OPCL) from the Bonsai Group, a Chinese investor.
It comes after some concerns were raised by a member of Operation Recover All Loots (ORAL), Martin Kpebu, on his Facebook page.
In the social media post, the private legal practitioner outlines five reasons for his call for forensic investigation into the sale of Ghana Bauxite Company to OPCL.
“Charlie, GoG must conduct a forensic into the sale of Ghana Bauxite Co. Ltd (GBC) to Ofori-Poku (OPCL). The shares were valued at $12.5 million in 2022 and GoG which owned 20% of the shares was given the right of first refusal to acquire the remaining 80% of the shares. GoG (per Charles Adu Boahene) refused the offer on the basis that there was no value for money etc. 2. But in less than 2 years, GBC is now valued at over $ 1 billion dollars! Yea you heard me right. How could that happen? 3. The man who did the valuation at $12.5 million is now the CFO of the buyer (OPCL). 4. Is it true OPCL is owned by a big financier of the NPP? 5. The owner of OPCL was a board member of GBC at the time of the sale of GBC to OPCL.. Insider trading? More to follow. Guys let’s sit up. This contract must be investigated. No way,” the facebook post read.
In a press release, OPCL has responded to each of the issues raised by the private legal practitioner.
According to the Ofori-Poku Company Limited (OPCL), the issues raised over the purchase of the GBC are misleading and inaccurate.
To them, the sale of Bonsai Mineral’s eighty percent stake of GBC to OPCL followed due process. The group argues that they opted to buy the company after the Government of Ghana forfeited the opportunity granted by law.
The statement emphasized “OPCL lawfully acquired the 80% stake from BOSAI Minerals on the same terms as offered to the government, ensuring business continuity and commitment to the company’s long-term growth and development”.
The Government of Ghana’s 20 percent stake in the company remains untouched.
The company’s press release further challenges the valuation claims.
It emphasized “the claim that GBC was valued at $12.5 million in 2022 and is now worth over $1 billion is misleading and lacks factual basis”.
It further argues the fluctuation in the company’s valuation was dependent on investment, operational improvements, and market conditions.
“Since acquiring GBC, OPCL has made significant financial investment and strategic interventions that have enhanced efficiency, increased output, and strengthened the company’s market position. These improvements have naturally had an impact on the current valuation,” it states.
Ofori-Poku Company Limited has dismissed Martin Kpebu’s assertion the company’s Chief Finance Officer was the same person who did the valuation of the company before the acquisition by the new owner.
“The assertion that an individual who was involved in the valuation later became the CFO of OPCL is false,” it refutes.
They further indicated, “GBC under OPCL’s leadership operates with a professional management structure, and all key appointments are made based on competence and industry experience. Any attempt to suggest unethical behavior is unfounded and misleading.”
The claim that GBC was sold to a financier of the NPP is strongly contested by OPCL.
OPCL claims the ownership of the company is in no doubt since it is well-documented and can be verified.
“Any suggestion that it is secretly owned by a financier of a political party is false, misleading and intended to create unnecessary suspicion in the minds of the public. The acquisition was purely a commercial transaction, driven by business strategy, financial viability and investment potential. The process adhered to all regulatory requirements and there was no political influence or interference at any stage.”
Though the claim that the owner of OPCL was a Board Member of GBC prior to the sale is true, they insist there was no insider trading as suggested.
“Board membership does not equate to insider trading, particularly in a private company like GBC. It is standard corporate practice for shareholders-including the government of Ghana, which was also represented on the board- to have access to relevant financial and operational information”, the statement reads.
It further added, “Insider trading laws apply to publicly traded companies, not private transactions such as this one. There was no insider trading, conflict of interest, and no impropriety, only lawful, commercial sound business transactions. Any attempt to suggest otherwise is uninformed and misleading.”
