Ghori plant contract cancelled by government

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Afghanistan: The Afghan government has cancelled a private contract to run the Ghori cement plant citing irregularities in the ownership of the company in 2016. It said it was not properly notified about a change in ownership and the company also owes it unpaid taxes and fees since it was privatised in 2006, according to Reuters. Zabihullah Sarwari, a spokesman at the Ministry of Mines and Petroleum, said that the government was notified of the sale of the original shareholding after it had been completed.

Local businessman Javid Jaihoon reportedly purchased the business from Afghan Investment Co (AIC), a group of investors including the brother of the former president Hamid Karzai. Jaihoon told Reuters that he had paid all the government fees relating to the company and that he has invested nearly US$60m in the plant.

Operation at the cement pant is expected to continue for the time being. The government now intends to put the company up for international tender.

Last modified on 15 February 2017

URL: https://globalcement.com/news/item/5787-ghori-plant-contract-cancelled-by-government

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