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A major ceramics manufacturer operating in Ghana has been accused of systematic tax evasion and pension fraud spanning several years, in what whistleblowers are calling “corporate exploitation of Ghanaian workers.”
Keda Ghana Ceramics Company Limited, a subsidiary of Chinese multinational Keda Industrial Group, is at the centre of a growing controversy following a formal petition submitted to the Director-General of the Social Security and National Insurance Trust (SSNIT).
The petition alleges that the company, based in the Shama District of the Western Region, failed to comply with its statutory obligations under Ghana’s National Pensions Act and Income Tax Act between 2016 and 2023.
According to the petition, the company—under the leadership of its Managing Director, Mr. Lorry Lei—deliberately refused to remit SSNIT contributions for its workforce and failed to deduct or pay income taxes to the Ghana Revenue Authority (GRA).
These actions, the petitioner claims, were not the result of administrative errors or financial hardship but a calculated effort to maximise profits by avoiding legal obligations.
“Over 4,000 workers, particularly in the engineering and electrical departments, have been denied basic social protections,” the document states. Many former employees reportedly left the company without receiving a single cedi in pension contributions or tax documentation.
The company is also accused of misclassifying employees as “casual staff” to circumvent Ghana’s labour laws, thereby avoiding long-term benefit payments.
The accusations are particularly damning in light of the company’s receipt of substantial tax exemptions under the former government’s flagship One District One Factory (1D1F) initiative. Official records show Keda Ghana Ceramics benefited from a tax waiver amounting to over US$13.5 million for machinery, equipment, and raw materials.
“These violations not only undermine workers’ rights but also cost the Ghanaian state millions in revenue,” the petitioner wrote.
Also under scrutiny is the role of international finance institutions. Keda Ghana Ceramics is affiliated with the International Finance Corporation (IFC), the private sector arm of the World Bank. The IFC has reportedly provided major financial backing to Keda’s Africa operations, including a proposed €200 million debt facility to a related entity.
Under the IFC’s own guidelines—particularly Performance Standard 2 (PS2), which mandates fair treatment of workers and compliance with national labour laws—the company may be in breach.
The petitioner is calling for a full forensic audit of Keda Ghana Ceramics’ payroll from 2016 to 2023, legal sanctions against top management, and recovery of all unpaid contributions and taxes.
They also want Ghana’s Economic and Organised Crime Office (EOCO), SSNIT, GRA, and the Office of the Special Prosecutor to coordinate investigations and hold those responsible to account.
SSNIT and the GRA and the company are yet to comment publicly on the matter.
SOURCE: DAILY MAIL GH
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