Former KEDA employee petitions Presidency, SSNIT over alleged tax, pension fraud

A former Human Resource and Corporate Affairs Director of KEDA Ghana Ceramics Company Limited—formerly Twyford—has petitioned the Social Security and National Insurance Trust (SSNIT), the Economic and Organised Crime Office (EOCO), and the Office of the President to launch an urgent investigation into the Chinese-owned tile manufacturer based in the Shama District.

In the petition, Dr. David Yevugah accuses the company of refusing to remit mandatory SSNIT contributions for approximately 4,000 employees between 2016 and 2023, in violation of Ghana’s laws. The document, which has also been copied to the Finance Minister, Employment and Labour Relations Minister, and the Commissioner-General of the Ghana Revenue Authority (GRA), levels serious charges of corporate misconduct against KEDA.

“KEDA Ghana Ceramics Company Limited refused to remit the mandatory 13.5% SSNIT contributions for its employees, in clear breach of Act 766. This was not due to oversight or financial difficulty; it was a calculated corporate strategy to maximise profits at the expense of Ghanaian workers’ futures,” Dr. Yevugah stated.

He further called for a forensic audit and legal action against the company, citing deliberate exploitation and evasion tactics allegedly spearheaded by Managing Director Lorry Lei.

“In a flagrant violation of Ghana’s tax laws, the company failed to deduct or remit income taxes to the Ghana Revenue Authority (GRA). This is criminal tax evasion, and it has deprived the nation of critical revenue needed for development… The company exploited legal loopholes by labelling workers as ‘casual staff’ for extended periods, often over six months, deliberately to avoid triggering statutory deductions.

“Although this was in clear breach of Act 766. This was not an administrative error but a deliberate act of fraud against the workers and the state. Over 4,000 workers, especially in the E&E (Engineering and Electrical) departments, were subjected to these exploitative practices.

“Many have left the company without a single cedi paid into their pensions or taxes filed on their behalf. These are not isolated cases but a pattern of abuse overseen and implemented by top management, particularly by Mr. Lorry Lei and his team of Chinese managers who exercise absolute control over departmental functions, payroll, and compliance decisions.”

Dr. Yevugah also highlighted that the company, as a beneficiary of the One District, One Factory initiative, had received tax waivers amounting to US$13.5 million on machinery, equipment, and raw materials. He called on SSNIT, EOCO, GRA, and the Presidency to intervene.

He demanded: “A full forensic audit into Keda Ghana Ceramics Company Limited’s employment and payroll systems from 2016 to 2023, legal action against the company and its leadership for willful non-compliance and fraud, and recovery of all unpaid SSNIT contributions and taxes, with penalties and interest applied.”

Dr. Yevugah also noted that the company is affiliated with the International Finance Corporation (IFC), the private sector arm of the World Bank Group, through its parent company.

When Citi News contacted Henry Zhou, Assistant Managing Director of KEDA Ceramics Ghana, he dismissed the allegations, attributing the petition to an ongoing criminal investigation against Dr. Yevugah himself.

“It is important to indicate that David Yevugah was employed by the company in 2016 as a Human Resources Manager by the Chinese management to help establish the relevant human resource processes and manage the staff according to Ghanaian local laws and conditions. So he had been in charge of recruitment and advised the Chinese management on all relevant statutory deductions in respect of all the categories of workers.

“Currently, David Yevugah has absconded from criminal investigations by the Police CID at the Headquarters in Accra and the Police District Office in Sekondi in respect of complaints of defrauding and stealing of the company’s money through recruitment irregularities discovered during the 2024 audit investigations in the company.”

On the core issue of tax evasion and unpaid SSNIT contributions, KEDA denied the claims.

“KEDA operates in other countries and has worked with SSNIT officials and regularly pays all social security contributions in respect of various categories of workers employed by the company.

The company also works closely with the officials of the Ghana Revenue Authority, who even come around to conduct tax audits, and the company pays all taxes regularly.

“On the issue of grant of tax waiver, the process went through and was approved by the Parliament of the Republic of Ghana after going through the necessary inquiries.”