Business News of Monday, 13 August 2018
The CEO of Engineers and Planners (E&P), Ibrahim Mahama, has refuted allegations that his non-payment of a GH¢302,000,000 loan facility granted to four companies reported to be his, resulted in the collapse of defunct UT Bank.
He has also disputed claims that he owns the said companies; Dzata Cement, Holman Brothers Ltd and MBG Ltd.
Speaking to the media after a tour of Dzata Cement, the company that spearheaded the loan facility, Lawyer for Engineers and Planners, Reindorf Twumasi said it is factually inaccurate to make any such assertions.
An investigative report into the collapse of defunct UT Bank revealed that a swathe of non-performing loans including a GH¢302,000,000 owed by Engineers and Planners, contributed to the collapse of UT Bank.
But lawyer for Engineers and Planners, Reindorf Twumasi insists at the time of the revocation of the license of UT bank, they were not in default of payment.
“Under the Banks and Specialised Deposit Taking Institutions Act 930, which is the Act upon which the Bank of Ghana revoked the silence of UT, there is a provision to the effect that upon the revocation of the license of a bank, all liabilities due the bank become due and payable. It doesn’t matter whether your facility was due in accordance with the terms or not; once there has been a revocation and there has been the appointment of a receiver, your liability becomes due and payable,” he explained.
Mr. Twumasi added, “At the time the license was revoked, my clients were not in default but the basis for the claim for payment now is because of an operation of law.”
A statement highlighting the earlier agreement between UT bank and E&P also indicated that the projected revenue per day from the sale of cement was a minimum of GH¢1,000,000.
With this projection, Dzata would have paid off the loan with the interest in less than five years.
The statement further mentioned that though it was agreed that UT Bank will finance the cement factory till it becomes operational, the revocation of the license stopped that arrangement.
“At the time that the Bank’s license was revoked, the records will show that the project was about 80% complete,” it alluded.