Petition to Investigate KEDA Ghana Ceramics Company Limited for Alleged Non-Payment of SSNIT Contributions
Dr. David Yevugah, former Director of Human Resources and Corporate Affairs at KEDA Ghana Ceramics Company Limited, has submitted a petition to various government agencies, including the Social Security and National Insurance Trust (SSNIT), the Economic and Organised Crime Office (EOCO), and the Office of the President, alleging the company’s failure to remit mandatory SSNIT contributions for approximately 4,000 employees over a period spanning from 2016 to 2023. The petition also calls upon the Finance Minister, the Minister for Employment and Labour Relations, and the Commissioner-General of the Ghana Revenue Authority (GRA) to intervene in this matter. KEDA Ghana Ceramics Company Limited, a Chinese-owned tile manufacturing company located in the Shama District, is accused of deliberately withholding these crucial contributions, amounting to 13.5% of employees’ salaries, in violation of Act 766.
Dr. Yevugah asserts that this non-payment is not an oversight but a calculated corporate strategy designed to maximize profits at the expense of Ghanaian workers’ future security. This alleged action deprives employees of their rightful social security benefits and undermines the integrity of the national social security system. The petition emphasizes the gravity of this alleged breach and its potential long-term consequences for the affected employees, who are being denied their entitled social security protections and benefits upon retirement or in times of unforeseen circumstances. The petition highlights a pattern of disregard for labor laws and ethical business practices, raising concerns about the broader implications for corporate governance and worker rights within Ghana’s manufacturing sector.
The petition calls for a comprehensive forensic audit of KEDA Ghana Ceramics Company Limited’s financial records to ascertain the full extent of the alleged non-payment and to determine the exact amount owed to SSNIT. This audit is crucial for establishing the veracity of the claims and providing concrete evidence to support any legal action that may be taken against the company. Moreover, Dr. Yevugah urges the relevant authorities to initiate legal proceedings against KEDA Ghana Ceramics Company Limited and hold its management accountable for the alleged violation of Act 766. This would involve a thorough investigation and, if necessary, prosecution of the responsible individuals within the company.
Specifically, the petition identifies Managing Director Lorry Lei as the key figure behind this alleged scheme of intentional exploitation and evasion of statutory obligations. It implicates Mr. Lei in orchestrating the non-payment of SSNIT contributions, suggesting a deliberate effort to circumvent labor laws and maximize profits. The allegations against Mr. Lei underscore the need for a thorough investigation to determine his role and hold him accountable if the allegations are proven true. This focus on individual accountability highlights the importance of holding corporate leaders responsible for their actions and ensuring compliance with labor laws.
If these allegations are substantiated, KEDA Ghana Ceramics Company Limited could face significant legal and reputational repercussions. The company could be subject to substantial fines, penalties, and legal action, potentially impacting its operations and financial stability. Furthermore, the negative publicity surrounding this case could damage the company’s reputation and erode public trust in its business practices. Beyond the immediate impact on KEDA, this case has broader implications for the business environment in Ghana. It highlights the ongoing struggle for workers’ rights and the challenges in enforcing labor laws, particularly in industries dominated by foreign-owned companies. The case also underscores the importance of strong corporate governance structures and ethical business practices for sustainable economic development.
The government’s response to this petition will be closely watched, as it will send a clear message about its commitment to protecting workers’ rights and upholding the rule of law in the manufacturing sector. A decisive and effective response will not only address the specific grievances raised in this case but also contribute to building a more just and equitable labor environment in Ghana. This case has the potential to serve as a precedent for future cases involving labor rights violations and could influence policy changes aimed at strengthening labor protections and promoting responsible business practices. It underscores the crucial role of government oversight and enforcement in ensuring that companies operate within the confines of the law and respect the rights of their employees.
