The Ghana Revenue Authority (GRA) has liquidated the steel manufacturing company, United Steel Company, to settle tax liabilities and debts exceeding GH¢400 million.
The GRA, being the primary creditor, appointed the Ghana Association of Restructuring and Insolvency as the liquidator to oversee the process.
Following due diligence and the opening of competitive bids, B5 Plus, another steel manufacturing company, emerged as the successful bidder.
United Steel Company faced financial distress with a debt of GH¢149 million and a total tax liability, including penalties, exceeding GH¢400 million.
According to a report by Ghanaweb.com, B5 Plus has assumed control of the management of United Steel Company following its successful bid, marking the resolution of the latter’s debts, which had accumulated for over two years.
The Ghana Revenue Authority (GRA) had pursued the recovery of taxes from United Steel Company for more than three years.
After the liquidation process, the Commissioner General of the GRA, Rev Amishaddai Owusu Amoah, announced that the full taxes owed had been settled.
“After they bought the company, they paid the tax liabilities in full because then the administrator had applied to take advantage of the waiver of the penalties, so the 149 million which we have been chasing from 2020 was paid in full. The workers who were about 400 were paid their redundancy packages in full and we re-employed or re-engaged many of them and then the factory is also being put back on its feet to able to produce,” he said.