Dr Archibald Letsa, Volta Regional Minister, has assured management and staff of Volta Star Textiles (VST) of government’s commitment to revive the company.
He 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.
Mr Divine Vigbedor, the Acting Managing Director of VST, said the once vibrant company was in debt and is underperforming.
He said the company made a monthly profit of 1,492,000 million cedis out of which raw materials took a chunk of 863,000 cedis; salaries and other miscellaneous, 444,000 cedis and 409,000 for power.
Mr Vigbedor said apart from the company’s old debts, it was accumulating a monthly debt of about 363,000 cedis with threats coming from the Electricity Company of Ghana 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 six million cedis to buy raw materials to help revitalize 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 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.