Lawyers for the Vice President of IMANI Africa, Bright Simons, have filed a Right to Information (RTI) request, demanding full disclosure on the utilisation of a sum of GH¢3.6 million belonging to the Kumasi Metropolitan Assembly (KMA).
The money, which was held by Fidelity Bank Ghana, has generated controversy when the bank was allegedly unable to account for the funds.
Reports suggest that KMA, raised an alarm over the amount in question, said to be part of a GH¢8 million loan secured from Fidelity Bank for redeveloping the KMA-Krofrom Market Project.
Per the report, only GH¢5 million, was released for the project’s execution, with the remaining amount unaccounted for.
Fidelity Bank came out in a statement to deny any foul play and clarified that: “there is no missing or unaccounted for amount of GH¢3.6 million as indicated in KMA’s release. The entire amount of GH¢ 8.6 million disbursed for Phase 1 of the project comprised GH¢4 million disbursed from Fidelity Bank’s approved facility of GH¢5 million and the KMA’s own funds of GH¢4.6 million disbursed from their contribution of GH¢5million towards the project.”
But lawyers for Bright Simons, Gratia Law Consult, in their request indicated that the applicant demands “a detailed and thorough understanding of these arrangements [between Fidelity Bank and KMA] to assist his further factual deductions and to pursue his public interest objectives.”
The lawyers added that they expect the KMA to fully cooperate and grant the request devoid of supposed delays because “for the avoidance of doubt, we believe, on careful consideration of the statute and the circumstances at hand, that Fidelity Bank, because of its dealings with KMA and other state-owned institutions, qualifies to be listed as a “relevant private body” within the meaning of the term in Act 989 and, at any rate, is a quasi-public institution in view of its receipt of public resources through KMA and others.
“There are, therefore, ample statutory and public policy grounds for the requested information to be disclosed in full, without exception or exemption, and without any regard to commercial secrecy.”
KMA, had accused Fidelity Bank of refusing to render an account over a loan it secured from it but got repaid more than GH¢3.6 million. This amount is minus the interest on the secured loan.
The assembly had in a press statement last week, 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 last 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.
Ghanaian Times said, Efforts to reach Mr Assibey-Antwi proved futile, as he could not be reached on the phone.
