August 19, 2011

As Parliament reconvenes on Monday 22nd August 2011, one major issue which will be begging for immediate discussion on the Majority’s side will be the STX Korea housing deal, which has been fraught with controversy ever since government made clear its intention to work with the Korean company.

The Chairman of the Works and Housing Committee of Parliament, David Tetteh-Assumeng, has said his committee will convene a meeting to deliberate on the latest controversy that has rocked the STX company, which many people fear may negatively affect the execution of the deal.

The country director of STX Engineering and Construction Ltd, Mr Bernard Kwabena Asamoah, on Thursday 18th August 2011 was dismissed, deepening the uncertainty over the execution of the government’s affordable housing project.

The project which will provide the country’s security personnel with about 3,000 housing units has failed to take off after a year of sod cutting to begin the project.

The opposition had some concerns over the deal when it came to parliament for approval, raising several issues including the sort of sovereign guarantee that had been given the Koreans, which the majority side dismissed.

The latest development is the result of a long-running dispute between the company’s Ghanaian and Korean directors over funding for the housing project.

In an interview, Hon. David Tetteh-Assumeng stated that the Minister of Water Resources, Works and Housing, Alban Bagbin and his deputy must go every length to find a solution to the stalemate between the directors of STX or be forced out of office.

He expressed his displeasure about the fact that the ministry had been unsuccessful in solving the impasse between the partners, describing it as a big bother to government.

Hon. David Tetteh-Assumeng however noted that government is committed to ensuring that the project is executed despite the present challenges facing the deal, saying ‘funding which is a key component of the project has already been secured’.

By : Kwadwo Anim/