Mr Kankam, who was a former accountant with the Kumasi Metropolitan Assembly (KMA), has been directed to immediately take steps to recover an amount of GH¢500, 000.00 granted as a loan to over 300 people in his constituency.
The money, which was the MPs share of the District Assembly’s Common Fund (DACF), earmarked for the developmental project, is alleged by the Auditor-General to have gone out as a loan but no recoveries have been done since.
Reacting to the development on Adom FM’s Midday News, Kasiebo is Tasty, Mr Kankam, who admitted to the issues raised, blamed the delay on recoveries on the Covid-19 pandemic.
“In the wake of the covid-19, businesses were affected so the beneficiaries could not use the money well to maximise profit and also pay back,” he said.
He explained the monies are with the traders with Barclays Bank now Absa, which was in charge of the disbursement expected to move and mobilise the funds.
However, he maintained the said publication was not an Auditor-General’s report, adding that it was a letter addressed to the Assembly to facilitate clarity to the auditor on the money.
“It is not as if the monies are with me, they are with the traders but I must say this is not an Auditor-General’s report as that is yet to be written.
“It was a letter to KMA and the issues were to be addressed internally so I don’t know how it became a public document,” he explained.
The report further said proper procedure was not applied because the lawyer for the Assembly was not party to the signed Memorandum of Understanding and also there was no signed agreement with the beneficiaries so the interest of the Assembly was not safeguarded.
But Mr Kankam, in the interview, revealed he had a meeting with the Deputy Director, lawyer at the Assembly and all other relevant stakeholders prior to the disbursement.
He said all these parties are aware as he did not have the sole authority to proceed with the decision.