…Angry Graphic MD asks workers not to joke with him
The Herald, continues to uncover details from last Friday’s meeting between the management of the Graphic Communications Group and its workers, regarding plans to recapitalise the state-owned company by having it listed on the Ghana Stock Exchange (GSE).
This paper learnt that, during the meeting, tensions escalated as Managing Director, Ato Afful, became agitated, and ran into tantrums after a barrage of questions.
In a moment of frustration, he revealed his roots in Moree, Central Region, stating that they are accustomed to tough situations as fishermen who drink Apketeshie, a local gin, and advised that he is not underestimated, asserting he was capable of something.
“Don’t joke with me, you know what I mean”, Mr Afful was heard saying.
Mr Afful, was visibly angry when he was told in the face that he and the executives of the company had failed by mismanaging the company.
The Graphic MD, at Friday’s staff meeting, fumbled as he struggled to address inquiries from the workers.
Many questions posed by the staff went unanswered, leaving Afful, visibly agitated.
One of the key concerns raised was Afful’s inability to identify the transaction advisors of the leading company in the process.
This happened as a letter authored and signed by Kojo Oppong Nkrumah, who until the February 14, reshuffle by President Akufo-Addo, was the Minister of Information, has surfaced, saying the government had appointed Messrs. FINCAP SECURITIES LIMITED, as the transaction advisor to assist GCCGL list on the Ghana Stock Exchange (GSE) as part of “recapitalization” of the company.
This move, Mr Nkrumah, now the Minister of Works and Housing, had explained in his one-page letter dated January 8, 2024, was part of a decision made by President Nana Akufo-Addo’s Cabinet on June 30, 2023, to make the company “more viable”.
Mr Nkrumah’s letter revealed that the matter had also gotten the attention of Parliament at a meeting held on December 14, 2023, with both the Ministry of Information and the Board of Directors of the company, agreeing that listing on the GSE was the best option for the company.
The over 400 workers of the state-owned company have not been paid for some months now. They also face uncertainty over their job security.
At Friday’s meeting, when questioned about the net value of the company, Mr Afful deferred to a government-appointed evaluation team, fueling frustration among the employees.
Despite Afful’s assertion that Graphic was not financially handicapped, workers insisted on the need for recapitalization, citing ongoing issues such as water dispenser shortages and creditor disputes.
Following the meeting, several workers expressed disappointment, describing Afful’s presentation as shallow and lacking substance.
It appeared to them that he was merely delivering a message without engaging in meaningful dialogue.
Afful announced that a valuation team would be deployed to the company for the next six months, tasked with assessing the company’s worth and facilitating its listing on the stock market.
However, his directive for workers to refrain from asking questions during this period was met with scepticism.
Critics argue that Afful’s dismissive attitude towards staff inquiries undermines transparency and accountability within the organization.
They perceive his characterization of Graphic workers as timid as indicative of a larger disconnect between management and employees.
As tensions persist within Graphic, the outcome of the valuation process and subsequent stock market listing, remains uncertain, casting a shadow over the company’s prospects.
In a bold demonstration of dissent, more than 400 employees of the Graphic Communications Group are preparing to march to the office of former President John Dramani Mahama, situated in Cantonments, Accra to demand clarity on his stance regarding the imminent sale of the state-owned company.
Amid escalating tensions within the renowned media organization, staff members are gearing up for a confrontation with management over plans to liquidate the company, which is celebrated for its flagship newspaper, the Daily Graphic.
According to reports obtained by The Herald, discontent has been brewing among the workforce, who vehemently oppose the decision by the Akufo-Addo government to privatize the company. This move comes amidst months of unpaid salaries and financial turmoil within the organization.
The workers, aggrieved by the government’s directive to transform the company into a profit-driven entity, are now seeking answers from Mahama, a prominent figure within Ghanaian society and the leader of the National Democratic Congress (NDC), the largest opposition party.
Allegations have surfaced, suggesting collusion between the MD, Mr Afful, former staff members, and a prominent Minister of State to orchestrate a takeover of the company through a private entity. It is rumoured that this scheme aims to acquire the company’s extensive land holdings across the country.
The Graphic Communications Group, responsible for publications such as the Daily Graphic, the Weekend Mirror, Junior Graphic, and the Graphic Sports newspapers, is facing a dire situation with unpaid salaries, pension contributions in arrears, and unresolved end-of-service benefits for retired staff members.
The workforce is further incensed by the company’s failure to fulfil its obligations to suppliers and maintain essential machinery due to financial constraints.
Expressing concerns over the potential exploitation of the newspaper as a political propaganda tool, workers fear the repercussions for Ghanaian citizens’ access to unbiased information and participation in national development.
On Friday, Daily Graphic reported that the Akufo-Addo government has approved a plan to recapitalise the GCGL.
“The injection of fresh capital is to enable the wholly state-owned company to run as an independent limited liability (private) company to make critical investments necessary to maximise its potential in the digital media landscape.
“Currently, the country’s biggest media establishment, which has chronicled its history and served the population for more than seven decades with credible news and information, generates only enough to meet its operating expenses and needs additional capital leverage for more strategic investments.
“The Cabinet, therefore, on June 30, last year approved a recapitalisation exercise through a carefully executed initial public offering (IPO) and subsequent listing of the GCGL allotted shares on the Ghana Stock Exchange (GSE).
“At a special meeting with staff yesterday to clarify the recapitalisation processes, the Managing Director of GCGL, Ato Afful, said after series of negotiations with the shareholder (the government), the Ministry of Information, the Public Enterprises Ministry, the National Media Commission (NMC) and the company’s board, it was agreed that the best option to recapitalise the business was through the floatation of part of the government’s equity in the business on the GSE to raise the needed capital.
“As part of that discussion, we need the Attorney-General’s (A-G’s) advice to enable the process to be properly guided by the law,” Mr Afful said at the special staff meeting at the head office of the company in Accra yesterday.
Staff
“The meeting, which was also carried live via Zoom for staff in the regions with packed staff presence, gave the managing director, who was flanked by some executive management members, the platform to explain the rationale for the additional capitalisation to staff for the first time.
“Staff also seized the moment to ask all the relevant questions and obtained assurances from executive management whose message stressed that the expected transaction was chosen over a private placement and other recapitalisation options, to reposition the company to deliver on its mandate and sustain its self-financing nature into the future.
“The parties are anticipating attractions from institutional investors such as the about GH¢54 billion pension funds, the GH¢15 billion Social Security and National Insurance Trust contributions and the about GH¢39 billion private funds that were available, as well as unions such as the Trades Union Congress (TUC), the Industrial and Commercial Workers Union (ICU), among others.
“Also, foreign institutional (portfolio) investors and retail investors are among the possible investors. Mr Afful stressed that the company, a wholly owned state organisation, required patient capital to undertake the actions it had outlined in its strategic plan anchored on transforming it from a print-oriented entity into a digital-oriented business.
“He explained that the change in the outlook of the business had necessitated a shift in business model based on dynamics in the environment which also called for a degree of financial reengineering.
“Mr Afful added that the company was not a cash-rich company compared to a telecommunications or financial services entity and that although its buildings could be seen around, they did not convert much in real value.
“The assets are sitting, they don’t convert much in real value unless you have the extra resources to make them count,” he emphasised.
Justifying the need to become a listed company, the Managing Director cited Ghana Oil Company (GOIL), GCB Bank and SIC Insurance Company Limited, as listed SOEs that were still profitable and very sustainable.
Roadmap
“Following a legal advice from the A-G, a transaction advisor would be appointed to work with the company and its stakeholders to operationalise the share floatation plan. In doing that, Mr Afful said, there would be a clear structure and pathway including revaluation of the company, due diligence, ensuring a proper transaction strategy, the development of a transaction document or prospectus, culminating in an investor roadshow for the IPO and its subsequent listing on the GSE, a process which could take six months.
