Edudzi Kudzo Tamaklo writes: I can’t comprehend why the Board of Merchant Bank in October 2008, for some unknown reasons, changed the 60 months tenure to 36 months tenure which was unilaterally done without consulting the joint Finance Partner, Ghana Commercial Bank. A loan facility which originally had tenure of 60 months inclusive of a moratorium period of 6 months within which to pay, spanning from August 2007 to June 2012. The monthly repayment then changed from US$ 750, 000 to US$ 2, 250, 000 per month, will definitely created serious cash flows burden for the company as nothing was left after debt service to support operations and maintenance costs. At the time the facility was granted in August 2007, E&P also appointed Merchant Bank to source a Mining Service Facility of US$ 60 million from an International Finance Institution. Various due diligence audits were carried out with Merchant Bank appointed as the Local Administration Agent (LAA). In October 2010-, when all the processes were completed pending draw down, Merchant Bank declined to act as LAA and this stalled the whole process. INTERCONTINENTAL BANK TO ACCESS BANK By mid 2011 a new LAA had to be appointed. E&P had to look for another Financial Institution; hence intercontinental Bank had to start the process all over again. Intercontinental Bank granted E&P a facility of US$ 21 Million in August 2010 to continue its operations. By June 2011, less than a year E&P had repaid this facility. Intercontinental Bank took up the role as LAA and continued the process. All the necessary due diligence exercises had to be carried out again. By the close of December 2011, almost all the Conditions Precedent (CPs) had been fulfilled awaiting draw down of the US$ 72 Million, from which Merchant Bank will be re-financed. The facility was oversubscribed due to the record time of full repayment of the facility before the maturity date. All of a sudden Access Bank acquired Intercontinental Bank and the process once again stalled due to the change of name and owners of previous LAA, Intercontinental Bank. The Board of Access Bank had to give their approval once again. This took another period of not less than four months to get the approval from Access Bank Board. FINAL APPROVAL AND ENGINEERS AND PLANNERS JOY Approval was finally given in September 2013 and the various stages of the due diligence once again had to be carried out. Fortunately, this time around it took a shorter period and by close of work November 19, 2013 all the conditions precedent had been honored and draw down had been assured before the 15 of December, 2013 by which time Merchant Bank will be fully paid. It is clear from information available publicly that the only reason for the opposition antagonistic stand on this financial transaction between Engineers& Planners and Merchant Bank is the fact that the owner of the company, Mr. Ibrahim Mahama is the brother of the President of the Republic, His Excellency John Dramani Mahama. The opposition to this transaction is trying very hard to smear the President when indeed there is nothing untoward in the said financial transaction in question, and the President had absolutely nothing to do with it. THE TOP FIVE DEBTORS OF THE BANK INCLUDE: 1. Engineers and Planners, owes GH¢39.5 million. 2. Myroc Food Processing Limited, Tema, owes GH¢20.5million 3. Western Steel & Forgings, Tema, also owes GH¢17.35 million. 4. Crystal Homes Company Limited owes GHc7.752 million 5. Kingsman of Kingman Enterprise owes GHc1 million.
Posted on: Tue, 03 Dec 2013 15:49:00 +0000
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