President John Dramani Mahama has assured that he will continue to support the Ghana Export-Import Bank (GEXIM) in its efforts to recover funds from individuals and businesses that have defaulted on loans secured from the bank.
The President said recovering the funds would ensure that Ghana Exim Bank has the resources to finance viable businesses and industrial projects that contribute to the country’s economic development.
Speaking at the commissioning of Northshore Apparel on Thursday, August 28, a facility funded by Exim Bank and Germany’s KfW Development Bank, President Mahama said the institution was established to provide financing for projects that promote value addition, exports, employment and sustainable development.
He, however, raised concerns that after his previous administration left office, loans from the Ghana Exim Bank were allegedly largely cornered by politically connected individuals who had no intention of paying back.
“It was the politically well-connected who had access to the financing without any intention to pay back the money,” he said.
President Mahama said that as a result, the bank is currently pursuing several beneficiaries who have failed to honour their repayment obligations.
“That is why today, Sylvester Adinam Mensah and his group, the Board Chairman, Dr Joseph Nyarkotei Dorh, are running after so many people who took the money and have not paid. And I will continue to support them to take the money back from those who have taken our money,” he stated.
His comments come amid the ongoing case of former Ashanti Regional New Patriotic Party Chairman Bernard Antwi-Boasiako, who has been accused of fraudulently obtaining a GH¢19 million loan facility from Exim Bank for a maize farming project on 100 acres of land. The loan facility is alleged to have increased to about GH¢30 million.
Antwi-Boasiako, popularly known as Chairman Wontumi, is currently in court over the matter.
The Accra High Court, on Thursday, August 27, ordered the prosecution to file disclosures within 14 days after plea bargain negotiations ended without an agreement.
This means the case is now expected to proceed to trial.
President Mahama said Ghana Exim Bank’s capacity to support genuine industrialists and investors whose projects have the potential to create jobs and expand Ghana’s export base would be strengthened if the funds are recovered.
He further noted that the bank would continue to identify and finance viable projects that promote local value addition and strengthen Ghana’s competitiveness in Africa and the global market.
“GEXIM will continue to identify and support viable projects that promote value addition, exports, employment and sustainable development,” he said.
The President expressed confidence that Ghana could build a stronger industrial base and position itself as a competitive producer for Africa and the wider world.
Ghana Exim Bank, on its part, said it had reset and redefined its lending scope in line with the President’s vision for industrial development.
The bank stressed that its lending decisions would not be based on sentiments but on the potential impact of projects on the economy.
“Behind every facility we extend is placing scarce resources where their impact could be significant,” the bank said.
The bank further noted that the Northshore proposal was among several projects presented for consideration but said few had made as compelling a case for financing as the Northshore project.
