Appiatse Explosion: Government fines Maxam Limited $6m; Maxam accepts payment of fine
The government, through the Lands and Natural Resources Ministry, has issued a fine of $6 million for its role in the explosion that took place at the Appiatse community in the Western Region.
The fine according to the Ministry in a press statement, follows investigations carried out into the incident by a three-member Committee and a report subsequently submitted to the Ministry by the Committee.
“Having the regard to the nature and totality of the circumstances leading to this tragic incident, I, as the Minister responsible for Lands and Natural Resources, and, therefore the overseer of the activities of the sector, have imposed an administrative fine of the cedi equivalent of $1 million.
“In addition to the fine, it has been agreed, after extensive discussions with Maxam that the company will pay to government the cedi equivalent of $5 million.
“For the avoidance of doubt, the total amount payable by Maxam to government stands at $6 million or it’s cedi equivalent at the prevailing commercial rate,” remarked the Lands Minister, Samuel Abu Jinapor.
Per the statement, Maxam is first expected to pay the initial amount of $1 million to have its permit to manufacture, store, supply and transport explosives restored to it by the Ministry.
Then after, it will over an eighteen (18) months period, pay in monthly equal installments, the remaining $5 million fine.
Payment of the $5 million fine the Ministry further noted, shall commence on March 1, 2022 and end in August 1, 2023.
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Reacting to the fine imposed on it by the Ministry, Maxam limited said, “Maxam has noted the findings made by the Ministry of Lands and Natural Resources from its review of the tragic road accident and its assessment of how to avoid a recurrence. The Ministry has determined that there were certain breaches by Maxam in its operations and has imposed a fine of US$1 million on the company.
“None of these breaches were the cause of the tragic road accident and all of them relate to the transport carried out by Arthaans Logistics. Based on a different interpretation of the applicable regulations, we believe that Maxam has not committed any of those breaches, however, to ensure the continuity of the business, to be able to supply our customers, to protect the employment of our workers and sub-contractors, Maxam has decided to pay the fine and will comply with the measures of the Ministry of Lands and Natural Resources
“Given our commitment to Ghana and its welfare, Maxam has agreed to the payment of additional Five Million United States Dollars or its cedi equivalent.”
“We are indeed saddened by the incident and we express our heartfelt sympathy to Ghana, particularly, members of the Appiatse community for the loss of lives, property and livelihoods. Maxam will ensure it is in full compliance with the new regulatory measures announced by the Ministry and will continue to conduct its operations in accordance with the laws of Ghana and international best practices. Maxam wishes to emphasize its sympathy with the Appiatse community,” it added.
Thirteen persons are reported to have died from the Appiatse explosion incident with some 100 people injured with several others rendered homeless due to the impact of the explosion which brought down or structurally weakened almost all houses in the community.
Read details of press release below:
Final – Press Release by Fuaad Dodoo on Scribd
