As US$5.2million Loan Facility Hits Ruling Party
The controversy surrounding the distribution of the famous “Freddie Blay Buses” to New Patriotic Party (NPP) constituencies, may not end anytime soon, as the process has been hit with another suit with report that, although the buses are yet to be delivered, but the party, has been hit by a loan facility it might struggle to pay.
The Herald is informed that, some directors of a company; UP Travel Service, which was set up to handle the transaction, have already proceeded to that Universal Merchant Bank (UMB) and obtained a US$5.2million loan facility over the yet-to-be-delivered buses.
This is said to be causing anger in the party, especially at the Constituency level as many executive say they have no funds to run affairs of the party.
They had hoped that the promises made by the NPP National Chairman, Freddie Blay, and others, including General Secretary, John Buadu, would have materialized by now to give then resources to run the party.
But over a year since the buses arrived in the country, the NPP is executives are still waiting to see them and put them to use and get money to run the party as they were made to believe and pass onto the delegates who converged at the Koforidua National Conference to vote for Mr Blay, as National Chairman.
Meanwhile, a businesswoman, Rose Hattoh, who is a part owner of UP Travel Service Limited, which was set up to oversee the operation of the buses, has sued her business partner, alleging a new director has been wrongfully appointed.
Freddy Blay, promised to gift the party’s Constituency branches the buses prior to his election.
One hundred of the 275 buses arrived at the Tema port in July 2018, but have still not been delivered to the constituencies, following controversies.
In July 2019, Kelliot Royal Motors, dragged the matter to court as it claimed that UMB, had refused to release the vehicles to them.
Kelliot Royal Motors, claimed that he secured a loan facility in excess of $3million to procure the buses for onward sale to the NPP on May 13, 2018.
According to the writ, the terms of agreement demanded that Kelliot Royal Motors, will apply the loan facility to purchase the 100 Toyota Hiace vehicles for onward sale to the NPP, as part importation for a total contract sum of $11,412,500 for 275 buses.
Kelliot Royal Motors, also stated that when the buses arrived in Ghana in June 2018, UMB caused the vehicles to be kept in a custom bonded warehouse, adding that the bank subsequently refused to deliver the buses to Kelliot Motors, regardless of many demands on the bank and contrary to the express terms of the agreement.
In the latest suit, Rose Hattoh, is seeking to prevent UP Travel services Limited, a company in which she holds 30percent shares from accessing loans from UMB to purchase the buses.
Hattoh claims that as a 30percent shareholder, she was deliberately excluded from salient decisions such as the appointment of a third Director for the company by Kwadwo Antwi-Adjei, who holds 70percent shares.
She further claims in her suit that, Antwi-Adjei and Nana Yaa Owusu-Aduome, the “purported” third director proceeded to obtain some $5.2million loan facility from UMB to purchase the ‘Blay Buses’.
She wants the court to order a reversal of the said loan and also make a declaration that all activities performed under the signature of Nana Yaa Owusu-Aduome, as a Director for UP Travel services Limited, be declared void and her appointment be declared same.