“How can you sell alcohol and still be in debt?” – Mahama
Former President John Dramani Mahama, has expressed astonishment at the financial difficulties facing GIHOC Distilleries Company Limited, questioning how an alcohol-producing company, could incur massive losses, despite strong and consistent local demand.
Maxwell Kofi Jumah served as Managing Director of GIHOC until his dismissal in January this year. An in-law of then-President Nana Akufo-Addo, he remained in post for years, despite his age, poor health, allegations of mismanagement, and persistent worker protests.
He is reported to have left behind a loss of GH₵25.1 million in 2022 and a further GH₵25.5 million in 2023. With the 2024 audit yet to be conducted, total losses are expected to exceed GH₵50.6 million.
Addressing workers during the May Day parade at Independence Square in Accra on Thursday, May 1, President Mahama, cited reports of GIHOC’s back-to-back losses as deeply concerning.
Mahama, remarked that the situation was particularly worrying given the steady demand for alcoholic beverages in Ghana.
“How can you sell alcohol and still be in debt? When I was president, GIHOC was making a profit. Ghanaians drink alcohol when we’re happy, and we drink alcohol when we’re sad—so how can an alcohol-manufacturing company be making losses?” he questioned.
He used the example to highlight broader issues of mismanagement in state-owned enterprises and called for improved accountability.
His remarks, followed disclosures by Finance Minister, Dr Cassiel Ato Forson during a meeting on March 13, with Chief Executives of state entities under the State Interests and Governance Authority (SIGA). The Minister confirmed that GIHOC, recorded losses of GH₵25.1 million in 2022 and GH₵25.5 million in 2023.
Late last year, workers at GIHOC Distilleries staged protests over unpaid salaries and worsening conditions of service.
On Tuesday, December 20, 2024, aggrieved employees staged a demonstration at the company’s Accra premises, citing prolonged delays and repeated broken promises by management.
Kingsley Sape, Chairman of the Senior Staff Association, described the workers’ growing frustration:
“There are many unresolved issues. Management removed our transport allowance without any prior consultation,” he said.
“We haven’t received our thirteenth-month bonuses for some time now. Our salaries are regularly delayed. SSNIT contributions are in arrears, and so is our provident fund,” he added.
This was not the first time GIHOC staff, had taken to the streets in protest. In 2023, a similar demonstration was held, with employees demanding the payment of wage arrears and accusing management of financial mismanagement.
The company has also been scrutinised over allegations concerning the sale of the Aboso Glass Factory. However, the National Distilleries Company has strongly denied these claims.
Earlier, in May 2023, tensions erupted again at GIHOC’s Accra facility over three months’ unpaid salaries and what workers described as generally poor working conditions. Members of the workers’ union staged a protest, wearing red attire and bands, as two armed police officers guarded the company entrance.
Protesters alleged that Mr Jumah ordered staff to vacate the premises until they removed the red bands and halted their demonstration. One employee, identifying himself only as Kingsley, claimed that after workers were driven out, Jumah called in heavily armed police officers to prevent further protests.
“We are not being given the attention and respect we deserve as workers. Everyone here is suffering. Salaries are not being paid, and life is becoming unbearable. We urgently need the government to intervene,” he said.
He also indicated that union leaders were preparing to meet Deputy Minister of Trade and Industry, Mr Herbert Krapa, in an effort to resolve the situation.
Some employees told the media that since Mr Jumah took over as managing director approximately six years ago, working conditions had deteriorated severely. They claimed that payments to the Social Security and National Insurance Trust (SSNIT) and provident funds had ceased for over a year.
In October 2024, Mr Jumah issued a controversial statement warning employees against participating in an upcoming strike organised by labour unions.
A well-known figure in Ghana’s corporate sector, Jumah stated unequivocally that any employee who joined the strike would be summarily dismissed.
The strike, led by organised labour, was in response to worsening economic conditions, stagnant wages, and threats to workers’ rights. Employees across various sectors were expected to walk off the job in protest, demanding government intervention.
Jumah’s remarks drew immediate backlash. “Anyone in GIHOC who participates in this strike will be sacked,” he reportedly said, sparking outrage among labour unions and rights groups. His hardline position was widely seen as an attempt to deter GIHOC staff from participating in the nationwide protest, which could have disrupted operations.
The announcement drew mixed reactions. Supporters argued that businesses could not afford operational disruptions during economic hardship. However, critics pointed out that the right to strike is protected under Ghanaian labour law and warned that Jumah’s threats could infringe on those rights.
Labour unions condemned the statement, describing it as a blatant attempt to intimidate workers and undermine collective bargaining.
“This is unacceptable and violates the fundamental rights of workers to participate in lawful actions for fair treatment,” said a union spokesperson.
As tensions escalate, it remains uncertain whether Jumah will follow through on his threats or whether constructive dialogue between labour and management can ease the standoff.
For now, GIHOC employees face a difficult decision—stand with their colleagues in protest, or risk losing their jobs in what has become one of the most high-profile industrial disputes in recent memory.