October 21, 2021

FREDCO FD Company Limited to sell KMA’s Admin block to defray debt

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A Kumasi High Court has granted an order to FREDCO FD Company Limited, a sub-contractor with the Kumasi Metropolitan Assembly (KMA), to sell the Assembly’s administration block to defray a debt of almost GH¢5 million.

The order was granted the contractor on September 28,2021.

In 2016, FREDCO FD obtained a similar order and took three vehicles of the KMA promising to go for more immovable properties if the amount from the sale of the vehicles was not enough to defray the debt.

The Judgement creditor (FREDCO FD) in 2017, secured a similar order to seize three other buildings including the Kumasi mayor’s residence at Plot no. 9 Old Peters Avenue at Nhyiaeso.

Members of the Assembly last week threatened to resist attempts to confirm any nominee as Chief Executive until the central government pays off the Assembly’s outstanding debts.

As of 31st December 2016, KMA’s financial liabilities stood at GH¢119,213,333.22 as captured in the sessional address on 11th and 12th May 2017 by the then Mayor, Osei-Assibey Antwi.

In a span of four years, the KMA owes its contractors and business allies over GH¢50 million, a situation that forced the Assembly to ask the central government for bailouts.

According to the 2020 Auditor General’s report, KMA used GH¢670,720.78 of its District Assembly Common Fund (DACF) to pay judgment debt to some four contractors.

The Auditor-General recommended the Assembly to refund the penalty paid from the Assembly’s Internal Generated Funds (IGF) into the DACF.

Meanwhile, the President’s nominee for KMA Chief Executive, Samuel Payne, has lamented that “even if I go through the confirmation, the financial distress of the Assembly will impede the smooth running of KMA, but we are confident that all these issues will be sorted out because we are assiduously in talks with central government to settle the debt”.

 

 

Source: Ghananest.com


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