Judgement Debt: Court docket orders KMA workplace advanced to be bought

A Kumasi Excessive Court docket has granted an order to FREDCO FD Firm Restricted, a sub-contractor of the Kumasi Metropolitan Meeting (KMA), to promote the Meeting’s administration constructing to defray a judgement debt of just about GH¢5 million.

In 2016, FREDCO FD obtained an analogous order and hooked up three automobiles of the KMA and promised to go for extra immovable properties of the Meeting if the quantity from sale of the automobiles was not sufficient to defray the debt.

The Judgement creditor (FREDCO FD) in 2017, secured an analogous order to get three different buildings together with the Kumasi mayor’s residence at Plot no. 9 Previous Peters Avenue at Nhyiaeso

Akoma FM’s go to to the KMA premises noticed copies of the court docket order pasted at vantage factors of the Meeting’s constructing situated at Adum.

Talking on the Kumasi-based radio station’s present affairs and political programme GhanAkoma Wednesday, September 29, Presiding Member for KMA Stephen Ofori fears “the event might throw the Meeting off gear”.

“We’ve got been counting on internally generated funds to pay such money owed. As I converse, we’re in monetary misery and if care just isn’t taken, we will fall into the abyss of insolvency,” the nervous PM advised host of the present.

Members of the Meeting earlier final month threatened to withstand makes an attempt to substantiate any nominee as Chief Government till the central authorities pays off the Meeting’s excellent money owed.

As at thirty first December, 2016, KMA’s monetary liabilities stood at GH¢119,213,333.22 as captured within the sessional tackle on eleventh and twelfth Could, 2017 by the then Mayor, Osei-Assibey Antwi.

In a span of 4 years, the KMA owes its contractors and enterprise allies over GH¢50 million, a scenario that pressured the Meeting to ship SOS to the central authorities for bailouts.

In accordance with the 2020 Auditor Normal’s report, KMA used the District Meeting Frequent Fund (DACF) dedicated sum of GH¢670,720.78 to pay judgment debt to some 4 contractors.

The Auditor Normal advisable the Meeting to refund the penalty paid from the Meeting’s Inside Generated Funds (IGF) into the DACF.

In the meantime, President’s nominee for KMA, Samuel Payne, who spoke on the opposite aspect of the road, lamented that “even when I’m going by the affirmation, the monetary misery of the Meeting will impede the sleek working of KMA, however we’re assured that each one these points might be sorted out as a result of we’re assiduously in talks with central authorities to settle the debt”.

By Nana Asenso Mensah|Akoma FM|3news.com|Ghana