The Dispatch asks if it is possible that a company can open a new account at a bank and within a month, be granted loans totalling $3.5 million, about 24.5 cedis billion. The answer the independent paper says is yes, as evidenced by the decision of the Board of Directors of Ghana Commercial Bank Limited (GCB), under pressure from officials of the former National Democratic Congress (NDC) government, in the loans granted to Omega Wood Processing Limited without security.
According to the paper, officials from the Bank of Ghana (BoG) have started an in-depth investigation into how the loans were granted, against all banking regulations.
The Dispatch says it learnt that in August 1999, the Board granted Omega various loans totalling $3.5 million.
Omaga had no security to offer and were relying on the assets of another timber company, A.E. Saoud Limited, which they were then negotiating to buy.
According to the paper the deal between Omega and Saoudi is at a standstill. Omega has therefore not been able to provide any security. Nevertheless, the Board continues to grant them further facilities.
