University of Ghana owns consortium of banks ghc 523 million
Member of Parliament for Kumbungu Ras Mubarak on the floor of Parliament has asked the Minister for Education whether His Ministry is aware that the University of Ghana owes more than GHC 528 million from a consortium of banks it borrowed GHC 43 million from to build hostels, and if Ministry is aware, what are the plans to pay off debt?
The Hon. Minister for Education Matthew Opoku Prempeh in his response admitted that the Ministry is aware of the loan facility of GHS 43million the University of Ghana secured from a consortium of Banks to undertake the construction of hostels for the University.
The Hon. Minister admittedly said his Ministry is also aware of the GHS 523 million that arose after the inability of the former Government to honor its initial promise of
taking over the loan facility and the University of Ghana(UG)/University of Ghana Enterprises Limited (UGEL) inability to generate the needed revenue to support the repayment scheduled
agreed with the consortium of banks.
Minister for Education revealed that, the Accra High Court (Commercial Division) on the 30th day of January, 2019. delivered its judgment in favor of the plaintiff (Consortium of banks) and awarded them all their reliefs. The total debt as at the judgement date amounted to GHC 523370,251.67.
Dr. Mathew Opoku Prempeh told the August House that, after the judgment by the Accra High Court, there has been some engagement with the consortium of Banks led by the University Council and the Board of University of Ghana Enterprises Limited to restructure the payment of the facility. Per the proposed settlement agreement, the following terms were agreed to pay off the debt:
1.That 50% of the judgement debt of GHS 523,370.251.67
amounting to GHS 261,685.125.84 shall be waived and the remaining 50% shall be paid as full settlement of the entire debt.
2. UG/UGEL to make upfront payment of GHS50 million as good faith by 31 May. 2019. The good faith amount of GHS50 million be deducted from the agreed 50% of GHC 261.685,125.84.
Prince Boadi/ahotor news/ahotoronline.com
