Managing Director of the Ghana Stock Exchange (GSE), Mr. Kofi Yamoah says five companies on the bourse must improve their standing or risk removal on the stock exchange.
The companies include Aluworks and the Cocoa Processing Company (CPC).The troubled companies on the Ghana Stock Exchange have by December 2018 to rectify the anomaly or face the grim fate of delisting.
The Cocoa Processing Company which was suspended from trading in August 2017 has failed to submit audited financial and operational results for 2015, 2016 and 2017.
As of May 2017, CPC owed some syndicated banks $20m. CPC has told the Stock Exchange, it does not have a full board of directors to sign the accounts compounding its financial worse.
Aluworks blames the company’s financial struggles on unfair trade practices submitting Ghana had become a dumping ground for cheaper aluminum products particularly from Nigeria and China.
The company’s leadership however says they are in talks with two major shareholders in resolving its working capital difficulties.
Clydestone (Ghana) Limited was also found by the GSE to be in breach and put on the watch list. In a matter of days however the bourse issued a counter statement to the effect that Clydestone and one other had rectified the problem. “The Ghana Stock Exchange has, with immediate effect, lifted the suspension in trading of the shares of Clydestone (Ghana) Limited (CLYD) and Transaction Solutions (Ghana) Limited (TRANSOL) that was imposed on the two companies.”
For Group CEO of Clydestone; Paul Jacquaye the suspension announcement was damaging to the brand such that even their foreign partners picked up on it but ruled out delisting on the exchange.
The companies suspended or put on a watch list are accused of failing to submit financial reports, non-payment of annual listing fees, failure to conduct Annual General Meeting among others.