President Nana Addo Dankwa Akufo-Addo has directed that all the necessary steps should be taken to dissolve the Board of the Ghana Cylinder Manufacturing Company (GCMC) Limited in accordance with the provisions of the Companies Act and the company’s regulations.
This follows the impasse between the Chief Executive Officer of GCMC, Ms Frances Essiam and the board of the company.
A letter dated July 3, 2018 and signed by the Minister of Energy, Mr Boakye Agyarko and addressed to the Board Chairman of GCMC read: “His Excellency President Nana Addo Dankwa Akufo-Addo has directed that all the necessary steps be taken to dissolve the Board of Ghana Cylinder Manufacturing Company Limited in accordance with the provisions of the Companies Act and the Company’s Regulations.”
“In this regard you are kindly requested to take note of the directive as in paragraph one (1) above and act accordingly,” the letter added.
The letter which was copied to the Deputy Minister of Energy, Chief Executive of GCMC and the Company Secretary of GCMC asked the board chairman to ensure that “all documents and items belonging to the Board are handed over to the Company Secretary.”
“Meanwhile, please accept the gratitude of the President for the services you rendered to the nation,” the letter added.
In early May 2018, the Chief Executive Officer of GCMC, Frances Essiam, was suspended by six of the nine members of the board, over claims that she had mismanaged the company, and also awarded some contracts without the approval of the Board or the Energy Ministry.
Prior to the suspension, the board queried Madam Essiam over the allegations of mismanagement.
Madam Essiam, who prevented the board members from holding a meeting at the company’s premises before her suspension, eventually defied the suspension, and returned to work with the support of the workers, insisting that she remained the CEO.
The State Enterprises Commission (SEC) and the Ministry of Energy intervened and asked the board to freeze the suspension of Frances Essiam as CEO to enable a three-member committee to look into the impasse and recommend the way forward.
