The government has removed the Chairman of the Board of Directors of the Ghana Cylinder Manufacturing Company (GCMC) together with all the members.
In a resolution dated July 5, 2018, and signed by the Finance Minister, government said that “the Chairman and all the members of the Board of Directors of Ghana Cylinder Manufacturing Company Limited, which was inaugurated on 20th September 2017, are removed from office with immediate effect.”
The resolution made reference to Section 185 (1) of the Company Act which notes that “a company may by ordinary resolution remove from office all or any of the directors despite anything in its regulations or in an agreement with the director.”
Tussle at GCMC
There has been unrest at the company over the CEO, Frances Essiam’s disregard for some directives issued by the company’s Board, which was chaired by former Effiduase-Asokore MP, Frank Boakye Agyen.
At a point, the board members, on Tuesday, May 8, 2018, were locked out of the company’s premises allegedly on the orders of Madam Essiam.
Six of the nine members of the Board had suspended Madam Essiam over claims that she had mismanaged GCMC and also awarded some contracts without the approval of the Board or the Energy Ministry.
A letter from the company’s Board had also warned Madam Essiam to stay off the disbursement of a GH¢5million stimulus package sought by the government for the company.
But Madam Essiam defied the suspension.
The workers of the company also declared their loyalty to the CEO and protested the board’s decision, deeming it unfair and inappropriate.
The Executive Chairman of the State Enterprises Commission [SEC], Stephen Asamoah Boateng, also came out to refute claims that the Madam Essiam had been suspended.
Subsequently, a three-member independent committee was set up by the Energy Ministry in collaboration with the State Enterprises Commission [SEC], to probe the allegations and the disagreement with the Board.
This was in response to the recommendations of the company’s board at a meeting held on May 8, 2018.
The Minority in Parliament described the setting up of the Committee as another attempt to cover up the ‘rot’ at the company.
It is however unclear whether this decision to dissolve the board exonerates Madam Essiam of any wrongdoing.