A lack of letters of credit (L/Cs) is to blame for financial difficulties at an established Ghanaian timber firm according to its general manager.

The financial problems at Ghana Primewood Products (GPP) have led to the non-payment of workers, who have staged demonstrations to protest that they have received no wages now for three months.

Financial mismanagement

Workers at GPP have accused its managers of financial mismanagement and an inability to operate the company efficiently.

The workers have been protesting by holding noisy demonstrations and burning tyres outside the timber firm's premises in Takoradi.

L/Cs to blame

But GPP's general manager has told local media that the problem is not due to mismanagement but a lack of L/Cs against orders, which is presumably restricting the firm's cash flow.

The general manager says the timber firm is negotiating with its foreign buyers to raise L/Cs against orders so as to improve GPP's financial position.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.