2014 Merchant Bank receipt confirming debt payment from Ibrahim Mahama's company pops up

Following allegations that the financial struggles of Merchant Bank were partly due to significant debts owed by Engineers and Planners, a company owned by Ibrahim Mahama, a document showing the receipt of full payment from Engineers and Planners has surfaced online.

The document showed that Merchant Bank (Ghana) Limited confirmed receipt of the negotiated settlement amount of US$28 million from AFREXIM Bank in favor of Engineers and Planners Company Limited on January 31, 2014.

"In accordance with Clause 3 of the said Agreement, we, Merchant Bank (Ghana) Limited, hereby confirm receipt of the negotiated settlement amount of USD 28 million from AFREXIM Bank in favor of Engineers and Planners Company Limited on January 31, 2014. We hereby authorize you to date the Deed of Release and forward the same to AFREXIM Bank in accordance with the terms of the Agreement.

"We are pleased to inform you that the Bank has indeed received an amount of US$28.0 million through a SWIFT advice dated January 31, 2014, from African Export and Import Bank (AFREXIM Bank) into our Citibank Account #36056153 in full settlement of your indebtedness to Merchant Bank Ghana Limited," it added.

Investigative journalist, Manasseh Azure Awuni, in his book titled 'The President Ghana Never Got,' has stirred conversations over the 2013 sale of Merchant Bank, now known as Universal Merchant Bank (UMB), and the alleged involvement of Ibrahim Mahama.

In the book, he explained that the sale of Merchant Bank to the private equity firm Fortiz was shrouded in controversy.

Manasseh Azure noted that FirstRand Bank of South Africa had offered GH¢176 million for 75% of the bank's shares, while Fortiz acquired 90% for only GH¢90 million.

He further said the bank's financial struggles were partly due to significant debts owed by Engineers and Planners, a company owned by Ibrahim Mahama, who is also the brother of former President John Dramani Mahama.

In response to these allegations, there were media reports that Ibrahim Mahama’s lawyers have demanded a retraction and an apology from the journalist, asserting that the claims in the book are false.

However, in a social media post, Manasseh replied, stating, “I have received calls about the news that Ibrahim Mahama has given me seven days to delete pages 89 and 90 of my books because the information is inaccurate.

“That is not accurate. Mr. Ibrahim Mahama's lawyers have written to me concerning a paragraph of the book in the chapter on the economy. That paragraph says Ibrahim Mahama was indebted to Merchant Bank when it was sold in 2013.

“His lawyers say it was a company owned by Ibrahim Mahama, Engineers, and Planners, which owed the bank, not Ibrahim Mahama. I have forwarded their demands to my lawyers and the matter will be addressed soon.”

See the photos of receipts showing the 2014 payments below:

SA/AE

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