Report on Ibrahim Mahama’s transactions with UT Bank skewed – Lawyer

Lawyers for Ibrahim Mahama have dismissed reports suggesting that his transactions with the defunct UT Bank contributed to the collapse of the bank.

A leaked report allegedly prepared by the Central Bank attributes the collapse of UT bank, among others, to the refusal of Mr Mahama to pay back a GHC 302 million loan he took from the firm.

According to the report, the money was given to the brother of the former President to support his companies which included Dzata Cement, Holman Brothers Ltd., MBG Ltd.; and Engineers and Planners.

It added that Mr Mahama on countless occasions defaulted on repayment schedule prompting managers of the bank to seek a meeting with his brother John Mahama, who was then President, over the issue. The report also claims the popular businessman at one point, rather sent a representative, when he had agreed on a meeting with the board of the bank.

Reacting to the claims in a statement, lawyer for the Engineers and Planners CEO Mr Reindorf Twumasi Ankrah, said the report is skewed and does not reflect the facts of events.

“The sum of money put out there as the amount owed by companies ‘owned’ by Ibrahim Mahama is not accurate, and not a reflection of the facts and documents.

“Over a period of time, a group of companies with a company purpose and vision, conceived the idea of jointly establishing a cement factory in Ghana and accordingly pulled resources together to actualise this vision”, adding that: “Pursuant to the vision, Dzata Cement Limited put together a proposal for funding and sent them to a number of banks for financial support”.

“After a thorough due diligence on the companies, UT bank agreed to offer financial support to Dzata Cement Limited on terms”.

“The outlining agreement, which culminated in UT Bank offering financial assistance was that: it will provide liquidity support to Dzata Cement until the factory commences operations and starts selling its cement.

“The agreement was that all payments or proceeds from the sale of cement will be paid directly into an account owned and operated by UT Bank

“Indeed, it was agreed by the parties that UT Bank will have a branch on the premises of the factory which will serve as a pay point for all products purchased by customers.

“The projected revenue per day from the sale of cement was a minimum of GHS1,000,000 and with this projection, Dzata would have paid off the loan with the interest in less than five years.

“It was agreed that UT Bank will finance the cement factory till it becomes operational but this, unfortunately, could not happen due to the revocation of its licence last year. At the time the bank’s licence was revoked, the records will show that the project was about 80% complete”.