The Government is to make an application early next week for the formal take-over of the Quality Grain Company Limited at Aveyime, the state-owned Daily Graphic reports.

The legal take over would regularise the government's position on the actual ownership of the company, Nana Akufo-Addo, the Attorney-General, announced at a press conference in Accra on Wednesday.

The company, which was established in 1995, reportedly failed to comply with the provisions of Investment Code.

The President has subsequently directed the Minister of Agriculture to submit proposals for the development of the sector, once the government has taken over, he said.

Nana Akufo Addo said through the state's intervention, the company, which has been bedevilled by losses and other improprieties, will regain its values and serve its intended role.

The loans and facilities granted to the company meant that it was in fact a contractor to the government, which guaranteed the loans it was granted for the execution of the project, he said. He said the company does not fall into the category of an investor either by itself or part of a joint venture either with a Ghanaian private entity or the government, a situation, which infringes on the country's investment laws.