Prudential Bank chases NPP over Gh¢1.5m campaign loan

pkOfficials of Prudential Bank Limited are on the heels of the opposition New Patriotic Party (NPP) to repay an overdraft facility of Gh¢1.5 million during the 2012 elections.

According to an official bank notice, the main opposition party in Ghana has refused to make arrangement to repay the loan which has accrued to Gh¢2,290,631.36 due to interest.

The notice of demand from the bank which was addressed to the national chairman and the director of the NPP Election 2012 Fundraising Committee and copied to Ken Ofori Atta and Keli Gadzekpo of Data Bank (guarantors) said: “As indicated in our letter under reference, the Bank of Ghana Supervision Department has picked the Party’s account for downgrading due to nonperformance. This require the Audit and Risk Management Sub-Committee of the Bank’s Board to take action to recover the debt.”

“We are therefore by this letter requesting you, as guarantors of the facility, to ensure that the overdrawn balance of Gh¢2,290,631.36 together with interest thereon is paid off immediately but in any case not later than 30th April 2015,” the notice dated April 21, 2015 and signed by the bank’s director of credit administration HT Ayernor and chief legal officer, loan recovery department Osei Yaw Osafo directed.

Prudential Bank has served notice it will go ahead and initiate legal action against the NPP if it fails to “comply with the above directive.”

Meanwhile, in a press statement Wednesday evening, the guarantors have acknowledged there is an outstanding debt the party needs to clear, but said they are personally liable for the facility.

Below is the full press release signed by Ken Ofori Atta:

Debt with Prudential Bank

It has come to my notice that a letter written to me and copied to the National Chairman, from the Prudential Bank about a transaction that took place during the 2012 election campaign is being circulated in sections of the media.

The letter titled ” Re: Repayment of Overdraft facility of GhC 1,500,000 Demand Notice” is requesting repayment of a facility that I as Chairman of the 2012 Presidential Campaign Finance Team contracted and Guaranteed for purposes of the elections in 2012. I am personally liable for any obligation that arises from this transaction and not in any way the New Patriotic Party.

The facility was taken to complement the resources we had raised to support the operations of our Polling Station Agents. The party leadership at the time was fully aware of it and grateful. The disbursement of these funds was supervised by, and transfers executed by the Campaign Manager.

This was to supplement the entire polling station operation on Election Day (D Day) including logistics, feeding and stipends. It must be noted that this amount was not the total amount spent on D Day operations.

I would urge the supporters of the NPP and the entire public to disregard the mischief that the leakage of this letter and those behind it seek to create.

Our party has always been proud to fund itself by contributions and sacrifices of its members. This loan was guaranteed privately and the Party therefore is not directly liable for it.

Signed

Ken Ofori-Atta