The Ghana Revenue Authority (GRA) has given Electrochem Ghana Limited a seven-day deadline to clear a tax debt of GH¢8.6 million or face further enforcement action, including restricted access to its facility.

The directive follows several unsuccessful engagements between the Authority and the salt mining company, a subsidiary of the McDan Group of Companies, to recover the outstanding liability.

As part of its latest enforcement measures, officials from the GRA’s Compliance Unit on Wednesday, July 8, visited Electrochem’s facility at Ada in the Greater Accra Region and sealed the company’s administration block.

The Accra Area Enforcement Manager of the GRA, Joseph Annan, said the Authority was compelled to act after repeated attempts to recover the debt failed.

He explained that the liability, which dates back to 2021, had risen to about GH¢8.8 million, including accumulated interest, before the company made a partial payment of GH¢200,000 during the enforcement exercise.

Mr Annan said although the payment was inadequate compared to the outstanding amount, the Authority accepted it and decided to allow the company to continue operations temporarily to enable it to raise funds to settle the balance.

“We have decided to seal the administration block and give them the opportunity to work in order to raise the remaining balance within the next seven days,” he said.

He warned that failure by Electrochem to settle the debt within the stipulated period would lead to stricter measures, including restricting access to the entire mining facility.

Mr Annan said while the GRA recognised the need to support indigenous businesses, companies must also fulfil their tax obligations to enable the state to finance development programmes.

Officials of Electrochem at the facility appealed for restraint from the enforcement team and assured the Authority that efforts were underway to mobilise funds to clear the outstanding liability.

The action forms part of the GRA’s intensified measures to recover unpaid taxes and improve revenue mobilisation as it works towards achieving its annual collection target.

About Electrochem and its tax history

Electrochem Ghana Limited is Ghana’s largest salt mining company, operating in Ada and owned by the McDan Group, founded by businessman Daniel McKorley. The company is involved in large-scale salt production.

The company has, however, faced challenges with tax compliance. According to the GRA, Electrochem accumulated a tax debt of GH¢8.6 million dating back to 2021, despite filing tax returns.

The Authority said the company failed to consistently remit its tax obligations, resulting in the accumulation of interest over time.

In 2026, the GRA intensified efforts to recover the outstanding debt, issuing an immediate demand notice on January 7 and a final demand notice on February 13.

Following repeated engagements without a resolution, the Authority moved to enforce payment on July 8 by sealing Electrochem’s administration block in Ada. Production activities were allowed to continue temporarily to protect jobs, but the company was warned that a full shutdown could follow if the debt remained unpaid.

During the exercise, Electrochem paid GH¢200,000 towards the outstanding amount, leaving a significant balance unpaid. The GRA maintained that the debt represented historical obligations that must be settled, despite the company citing operational challenges as reasons for delays.