President Nana Akufo-Addo has ordered the dissolution of the Frank Boakye Agyen-led board of the Ghana Cylinder Manufacturing Company (GCMC).
No reason was given but the decision by the President is believed to have been influenced by the impasse between the Chief Executive of the company, Frances Essiam and the board.
The board of the GCMC on Tuesday May 8 passed a unanimous resolution at a crunch meeting to suspend Ms. Essiam over allegations of mismanagement.
Mrs. Essiam was also accused of awarding contracts without recourse to the board and the Energy Ministry, all of which she has denied.
The board also froze her authority to disburse any amount from a GH¢5 million stimulus package government sought for the Company.
But Ms Essiam proved defiant to the board and reportedly ordered a shutdown of the Company. Despite her suspension, she showed up the following morning at her office to assume official duties.
The State Enterprises Commission on May 9 issued asking the board of the GCMC to freeze the suspension of Mrs. Essiam.
The decision, according to SEC, was to enable a three-member committee set up in consultation with the Ministry of Energy to look into the ongoing impasse between the Board of GCMC and Ms. Essiam.
The committee was given two weeks to submit its report.
A letter dated July 3 and signed by the Minister of Energy Boakye Agyako said the President has directed that “the necessary steps be taken to dissolve the board” in accordance with the Companies Act and GCMC’s regulations.
It asked the board chair of to ensure that all documents and items belonging to GCMC are handed over to the Company’s secretary.