Kumasi Metropolitan Assembly Tough With Loan Defaulters

The Metropolitan Assembly in Kumasi might have to resort to legal means to recover monies loaned to beneficiaries of KMA's Poverty Alleviation Fund (PAF).

KMA will have no option than go to court if the rate of repayment does not improve in the next few months.

Out of a total ?300 million disbursed last year under PAF, only ?2.6 million (less than 3%) had been repaid as at November, this year.

Outstanding interest on the loan, according to KMA sources, stands at ?17 million.

Following this development, KMA cannot process hundreds of applicants who want to access the fund due to the non payment of beneficiaries.

Among the defaulters, according to a source close to the PAF desk at KMA, are Garden City Producers (?30 million), Ayedekyew Grains Marketing (?24 million) and Nyame Bekyere Traders (?23 million).

Chronicle also learnt that the December 31st Women's Movement had taken a loan of ?10 million and had not paid back.

Other defaulting beneficiaries each of whom received ?10 million include Adum Small Scale Industries, Allah Sarichi Association, Anloga General Food Producers Association and Gymnastic Trading Centre.

The first disbursement of the fund was made on January 1, 2000 with the last one on October 23, 2000.