BLAME NPP FOR COLLAPSE OF MERCHANT BANK

Deputy Central Regional Minister, Aquinas Tawiah Quansah says the contractual agreement under which some 57. 2 million Ghana cedis loan was secured by brother of President Mahama was done in 2007 at the time when the NPP was in power.

This revelation comes in the wake of an accusation by the NPP that the President played a vital role in securing the loan for his brother, Ibrahim Mahama in his company’s name, Engineers and Planners Limited.

The loan which represents 19.1 per cent of the total debt of Merchant Bank, according to the NPP, has led to the collapse and gradual sale of the Merchant Bank to First Rand of South Africa.

The issue became topical during e.tv Ghana’s Breakfast TV when NPP Member of Parliament for Asante-Mampong, Mr Francis Addai-Nimoh and the Deputy Central Regional Minister took their seats in the studio.

When Mr Addai-Nimoh was asked his take on the matter, he accused the NDC government of corruption and questioned the credibility of the government.

He also accused the NDC for being hypocrites relating it to the time when son of ex-president Kufuor secured and purchased the African Regent Hotel.

“How can we be that reckless in this kind of arrangement if it is not on corruption? On what basis did the NDC accuse former president Kufuor when his son as a business man was able to raise his money to secure and purchase African Regeant Hotel?” he questioned.

According to him, Ibrahim Mahama was able to secure the loan because of the ties he has with the sitting president, President John Dramani Mahama.

He said, “how could he have secured that facility of 57.2 million Ghana cedis perhaps without some facilitation or influence by his brother, whether Vice President or his position as the sitting president.”

However, in a quick rebuttal, the Deputy Central Regional Minister, Mr Aquinas Quansah set straight the records, noting that, the loan contraction was acquired in 2007 when the NPP was then in power.

According to him, “This loan was contracted in September 2007 and at that time President Mahama was an MP, Kufuor was the president of this country and that was when the loan was given.”

“So, if you sit here today and say that because his brother was either a Vice President or President that drew in some influences and that was how he got the loan, you got it all wrong! You don’t know anything about that loan. NPP doesn’t know anything about that loan. If they are talking about the man getting the loan through corrupt means then they should go and hold president Kufuor for it because this loan came in 2007,” he added.

He explained that due to the type of loan that was being secured, an LC account was opened in the name of Engineers and Planners to buy equipment for the company.

He said, “The loan wasn’t cash driven, it was LC driven. Somebody approached a bank, said look I have a job of this magnitude can you open an LC for me so I can buy my equipment. It wasn’t even money that was given the man. It was an LC that was open to buy the equipment.”

Mr Aquinas Quansah further accused the NPP for being malicious in the manner with which they were handling the issue.

“You see, they’ve known this all this while since 2008 when problems started happening between Merchant Bank and Engineers and Planners Limited. In 2009 all these problems have been then. Why now should NPP decide that two months to elections let’s bring this gentleman into the whole frame?”

“If this is not mischief then I don’t understand what it is,” he added.

He was of the assumption that the sale of Merchant Bank to First Rand was due to the new policies which were being implemented by the Bank of Ghana to make the financial base of banks in the country strong.

Mr Aquinas Quansah further called on the Merchant Bank “to publish the names of all companies that owe the bank and I know 93 per cent of them are NPP people. Some of them don’t even have the idea of paying. Engineers and Planners Limited is worth more than the 52 million Ghana cedis that they are saying.”

In the course of the discussion, Greater Accra NDC Chairman, Ade Coker called in to back what his party member, Aquinas had earlier on said about the loan contraction.

According to him, when it was realized that Ibrahim Mahama happened to be the brother of President Mahama, “the terms that were agreed with Merchant Bank were scuffled with and he was asked to pay the loan upfront. Then he said no and that has resulted in the situation where it has been resent. It has been resent and he is paying.”

He noted that, “It was during the 2008 campaign when they realized he was the brother to the president that they scuffled it because they said he was going to give money to the NDC. So through their vindictive politics they scuffled it and the guy had to resend it again and now he is paying it.”

He debunked assumptions that SSNIT was selling its largest stake because of the debt portfolio at Merchant Bank.

SSNIT, which held a 98% stake in the Merchant, in August this year, sold 75% of its stake to South African Bank, First Rand.