ZXZ Company Limited, a Chinese-owned firm producing the Moonda brand of mattresses, in Afienya-Accra, has been shut down by the Ghana Standards Authority (GSA) for using uncertified products.
The GSA, acting on a tip-off, conducted a market survey that revealed a Chinese company was trading substandard mattresses using unapproved materials. The company, which is not registered with the GSA, poses a danger to citizens purchasing these products.
During an operation by a team comprising GSA officials, Ghana Police Service (GPS) and media, it was revealed that the company is using polystyrene instead of polyurethane, which is not used for the production of mattresses.
This situation, he said, is not acceptable according to GSA regulations and standards.
The special operations also discovered that the company is assembling televisions, fridges and sound bar speakers under the brand name Asano in the country without registering with the GSA.
A Chinese national on-site, who identified herself as the supervisor but failed to give her name, argued that the materials used are accepted in China and so the production is legal.
But on further probing she confessed to not having the required licence to operate and consented to the facility being locked up until the right thing is done.
Answering a question on how long the factory has been carrying out the illegal operation, she said it was just for five months – but a worker later confessed that she has been working with the company for two years.
Head-Special Products Unit, GSA, George Anti stated that the scale of unlicenced production is staggering. He reiterated GSA’s commitment to ensuring that every product on the market is authorised, and all manufacturing companies must adhere to approved standards.
He explained that the polystyrene material used for producing the mattresses is meant for packaging electrical gadgets, hence being unhealthy for human use.
He revealed that sleeping on such mattresses poses long-term health risks, which could ultimately undermine the population’s productivity.
He stressed that beyond shutting down the factory, GSA will ensure the substandard products are discarded, proper certifications obtained and correct materials used before allowing the factory to resume operations.
“Ghana is open for business, but it must be done within the right regulatory framework. It makes no sense to invest heavily in establishing a facility and then operate illegally.
The company has committed multiple offences under our act, each with its own penalty units; so we will tally all the penalties and ensure they are paid before allowing the factory to reopen,” he said.
The GSA team, on a random inspection, also discovered a Chinese-owned plastic recycling plant operating without GSA licence at the same Bright International Industrial Zone.
The GSA has therefore sent a word of caution to all foreign-owned manufacturing companies operating without registering with the Authority to do so immediately to avoid any punitive measures.
AGI concerns about illegal operations
The Association of Ghana Industries (AGI) has repeatedly expressed concerns over the years about foreign-owned businesses flooding the market with substandard goods, which are sold at cheaper rates than standard products from local competitors.
This recent case serves as a major confirmation of those concerns.
This company’s substandard mattresses obviously sell for less than the quality products of Ashform and Latex Foam among others, impacting their businesss negatively.
Furthermore, until Ghana Revenue Authority performs a tax audit on this company it’s easy to conclude that it isn’t paying the right taxes – hence short-changing the state.
To create a fair playing ground for both local manufacturers and foreign investors, it’s important that Chinese firms operate according to national regulations, pay the right taxes and produce quality goods and services.
Source: thebftonline.com