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One thousand two hundred and twenty (1,220) workers of the Volta Star Textiles Limited at Juapong have been sent home, following the disconnection of power supply to the premises of the company.

The Electricity Company of Ghana (ECG) disconnected power supply because the textile company owes GH¢1.9 million in electricity bills.

The power cut has compounded the financial problems of the company, which has not been able to pay its junior and senior staff for five and six months respectively.

The financial problem of the company was precipitated by a shortfall in production which affected its revenue.

Underproduction

The Chairman of the Interim Management Committee (IMC), Mr John Akowuah, told the Daily Graphic during a visit to the factory that the company had set a target of 650,000 yards of grey baft every month, but had only produced 400,000 yards because of the poor management of the load-shedding exercise by the ECG.

He was of the view that the company could be cushioned against arbitrary power outages if the ECG was able to reactivate a substation in the company’s yard.

Mr Akowuah said the company would recall all workers by next week if it was able to pay the outstanding electricity bills.

Recapitalisation

Asked why the company could not secure a loan to pay electricity bills, Mr Akowuah said that management had proposed to the board for a recapitalisation through the banks or a bailout with grants from the government.

He said the company had opened up for a joint venture with domestic and foreign investors, adding that the factory was viable and there was no reason why it should fail.

Mr Akowuah said the workers were zealous and loyal, reiterating that none of them had been laid off. Rather, he said, the workers had been asked to stay home temporarily until power was restored.

According to him, there were enough raw materials and spare parts supplied to sustain the factory.

Until recently, the Volta Star Textiles Limited was the only manufacturing industrial unit in the Volta Region and remained a source  of livelihood for many people in and around Juapong in the North Tongu District.

Juapong had gained fame as the pillow city of Ghana because the residues of the factory were gathered by women and sewn into pillows.