Kumasi Metropolitan Assembly (KMA) Finance Director David Abbam Adjei has accused KMA Secretary General Samuel Pine of failing to repay a debt owed to Fidelity Bank.
David Adjei said the loan agreement between KMA and Fidelity Bank worth 5 million cedis for the continuation of the Krofrom Market project has reached its due date.
However, the mayor’s delay led the bank to trigger the collateral agreement.
Speaking on AbusuaNkommo on ABUSUA965FM with Kojo Maafo, Mr Adjei revealed that the loan agreement stipulated that registration fees from women in the market would be the main source of repayment. In case of default, Kejetia City Market shares were used as collateral.
She said: “The main source of repayment for the GH¢5 million loan was registration fees from women in the market. However, our shares in Kejetia City Market were used as collateral in case of default. Ta.”
He further explained that KMA was unable to meet the repayment deadline due to delays by the Capital Commissioner.
He emphasized that the collateral funds were used by Fidelity Bank to settle the loan agreement.
“Unfortunately we were unable to complete the registration and the Hon Sam Payne was installed as the new KMA boss. He told us to give him some time to review the documents and repay the As the deadline was approaching, Fidelity used the collateral money to settle the loan agreement,” he stressed.
Mr. Ajayi expressed disappointment that despite providing all the necessary information to the new city commissioner, Mr. Samuel Payne, the repayment deadline was not met due to delays in document review.
He said, “The briefing is over. I was part of the team that did the briefing, and what he told us is that we should wait until he does one or two things.” ”
background:
The Kumasi Metropolitan Assembly (KMA) has responded to concerns raised by the Ghana Times over the alleged disappearance of GH¢3 million from a loan for the Krom From Market project in Kumasi. Congress called for an investigation into the matter.
In 2021/2022, Parliament proposed a loan of GH¢5 million from Fidelity Bank for the market project, with a letter signed by the then National Capital Region Chief Executive, Osei Assibey Antwi.
In response to a report in the Ghana Times on Friday, May 10, 2024 entitled “Krofrom Market Redevelopment: GH¢3.6 million missing from project funds”, KMA issued a statement clarifying the matter.
The statement said the loan facility from Fidelity Bank approved by the general meeting for the survival of the Crofrom market was disbursed in an amount of over GH¢3.6 million.
“Sometime in 2020, the General Assembly approved a GH¢5 million loan facility from Fidelity Bank for the continuation of the Crofrom market. Fidelity Bank will provide the 8,622,347.56 francs,” the statement reads.