KMA accuses Fidelity Bank over its GH¢3.6 Million
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The Kumasi Metropolitan Assembly (KMA) has accused Fidelity Bank of refusing to render an account over a loan it secured from it, but got repaid in excess of GH¢3.6 million. This amount is minus the interest on the secured loan.
The assembly in a press statement, categorically denied that it has not filed any complaint regarding missing money from its project fund.
The KMA statement was issued in response to a publication by the Ghanaian Times newspaper on Friday, May 10, 2024, titled “Redevelopment of Krofrom market: GH¢3.6m missing from project fund.”
To clarify the issue, the KMA, explained that a loan facility approved by the General Assembly from Fidelity Bank for the continuation of the Krofrom market was paid in excess of GH¢3.6million.
“Sometime in the year 2020, the General Assembly approved a loan facility of GH¢5 million from Fidelity Bank for the continuation of the Krofrom market. Fidelity Bank disbursed an amount of GH¢8,622,347.56 to contractors based on certificates raised by the contractors and on the instructions of the Assembly,” the statement read.
The Assembly, also stated that it has fully paid the original amount of the loan requested from Fidelity Bank.
“The GH¢5 million facility from Fidelity Bank has been fully paid for by the Assembly, together with the interest charged by the Bank,” the statement continued.
Furthermore, the Assembly mentioned that Fidelity Bank, has failed to account for the additional GH¢3 million plus that was paid in addition to the GH¢5 million the Assembly had applied for.
The Ghanaian Times, had reported on how the KMA last week raised concerns over the alleged disappearance of GH¢3 million from a loan intended for the Krofrom Market project in Kumasi and called for a probe into the matter.
In the year 2021/2022, the Assembly proposed a GH¢5 million loan from a bank for the market project, accompanied by a letter signed by the former Metropolitan Chief Executive (MCE), Osei Assibey-Antwi.
During the 9th General Assembly meeting at the Prempeh Assembly Hall on Wednesday, it was revealed that the loan amount was increased to GH¢8 million.
However, only about GH¢4.8 million was spent on the project, leaving the remaining GH¢3 million unaccounted for.
This discrepancy sparked heated discussions among members, led by a former Presiding Member, Abraham Oppong, who urged a thorough investigation to hold those culpable accountable.
According to the members of KMA, the increase from GH¢5 million to GH¢8 million raised eyebrows.
The Krofrom Market project, initiated nearly two decades ago, holds significant promise for Kumasi residents.
Efforts to reach Mr Assibey-Antwi proved futile, as he could not be reached on phone.
In his presentation, Municipal Chief Executive (MCE) of KMA, Samuel Pyne, indicated that extensive deliberations had been held by a committee concerning the agreement of the old contractors and that an alternative funding for completion of the market project was being sought.
He said efforts to abrogate the contract were on course with a formal report yet to be submitted to the District Assemblies Common Fund Secretariat (DACFS) and the Ministry of Local Government, Decentralisation and Rural Development (MLGDRD).
Giving the overview performance of the Assembly for the 2023 fiscal year, the MCE, said a total of GH¢63,432,565.34 out of GH¢69,800,000.00, representing 90.88 per cent of the total budget, was received.
On expenditure, Mr Pyne, said GH¢64,802,869.00 out of the GH¢69,800,000.00 budgeted was spent, representing 92.84 per cent of the expenditure budget.
He highlighted the performance of internally-generated revenue, noting a year-on-year growth of 21.98 per cent, resulting in the collection of GH¢27, 901,002.66, despite the major challenge with property rate collection in the year under review.
He mentioned that the Assembly, from January 2023 till date, had installed over 5,500 streetlights in the metropolis in collaboration with the MLGDRD and Ministry of Energy.
According to him, the success story was tied to the enforcement of some digitalised revenue measures and their compliance by the people of Kumasi.
The KMA, Mr Pyne noted, would continue enforcing such measures to ease revenue collection, enhance the feedback mechanism between the Assembly and ratepayers, and develop more projects in the metropolis.
He spoke on a revenue mobilisation strategy for 2024 with a focus on enhancing revenue collection processes and structures.
This strategy, he said, included improving bill delivery and e-payments systems, utilising the court system effectively to recover overdue revenues, and collaborating with the Economic and Organied Crime Office to recover outstanding revenues as needed.
