The Crusading Guide says unconfirmed but credible information available to it indicates that in 1997 or 1998, Dr George Yankey, the then Director of Private Sector and Financial Institutions Division of the Ministry of Finance, was instrumental in persuading Kwame Peprah, ex-Minister of Finance, to sign a sovereign guarantee for a loan of $24 million from Ghana Commercial Bank (GCB) for the construction of La Palm Hotel. The immediate beneficiary of that gesture was Daniel Taman, Chairman of Coco Palm Limited.
The former Minister reportedly, effected that act while he was attending a Commonwealth Ministers' Conference in Bermuda. That guarantee, according to a source at the Ministry of Finance, was neither issued with Cabinet nor Parliamentary approval.
A similar guarantee had also been given to the same party (Taman) for US$12 million for the construction of the Coco Beach apartments.
The source disclosed that to date, Taman has not repaid a dollar to GCB, "Meanwhile, George Yankey is said to be a proud owner of one of those Coco Beach apartments", alleged the source.
A letter from the Ghana Commercial bank headed "Recovery of Debt Owed by Coco Palm Limited" on July 27, 2001 and addressed to one E.O. Armah had instructed the solicitors (of the Bank) - Messrs Lynes - Quarshie-Idun & Co. to commence legal action for recovery of the debt owed to it (Bank).
The letter intimated also that GCB held keys to three of Coco Palm's houses for sale. The bank guarantee agreement signed for and on behalf of the Bank of Ghana (BOG) by Dr. G.K. Agama, the former Governor of (BOG) had stated, "By a Loan Agreement dated 18th June, 1996 between Ghana Commercial Bank Limited ('the Lender') and Coco Palm Hotels Limited/La Palm Hotel Limited ('the Borrower'), the Lender has agreed to grant a loan of ?7,000,000 to the Borrower to be repaid by equal half yearly instalments within a period of three years; It is a condition that the Borrower shall secure the repayment of the said loan with a bank of Ghana Guarantee in the sums equivalent to principal and interest".
