KMA Finance Director blames Sam Pyne for debt default to Fidelity Bank

The Finance Director of the Kumasi Metropolitan Assembly (KMA), David Abbam Adjei, has blamed KMA boss Samuel Pyne for the failure to pay off a debt owed to Fidelity Bank.

David Adjei stated that the loan agreement between KMA and Fidelity Bank, amounting to 5 million cedis for the continuation of the Krofrom Market project, had reached its payment deadline.

However, delays from the Mayor led the bank to invoke the collateral agreement.

Speaking on AbusuaNkommo at ABUSUA965FM with Kojo Marfo, Adjei clarified that the loan agreement stipulated that the registration fees from market women would serve as the primary repayment source. In case of default, the shares of money at Kejetia City Market were used as collateral.

He emphasized, “The primary repayment source for the GH¢5 million loan was the registration fees from market women. However, our shares at Kejetia City Market were used as collateral in case of default.”

He further explained that KMA failed to meet the repayment deadline due to delays caused by the Metropolitan Director.

He highlighted that the collateral funds were utilized by Fidelity Bank to settle the loan agreement.

“Unfortunately, we couldn’t complete the registration, and Hon Sam Payne came as the new KMA boss. He told us to give him some time to go through the documents, and the time for repayment was due so Fidelity used the collateral money to settle the loan agreement”, he emphasized.

Despite providing all necessary information to the new Metropolitan Director, Samuel Payne, Adjei expressed disappointment that the repayment deadline was missed due to delays in document review.

He stated, “The briefing was done, I was part of the team that did the briefing and what he told us was that we should wait while he did one or two things”.

Background:

The Kumasi Metropolitan Assembly (KMA) has responded to concerns raised by The Ghanaian Times regarding the alleged disappearance of GH¢3 million from a loan intended for the Krofrom Market project in Kumasi. The Assembly has called for a probe into the matter.

In 2021/2022, the Assembly proposed a GH¢5 million loan from Fidelity Bank for the market project, accompanied by a letter signed by the then Metropolitan Chief Executive, Osei Assibey Antwi.

In response to a publication by The Ghanaian Times on Friday, May 10, 2024, titled “Redevelopment of Krofrom market: GH¢3.6m missing from project fund,” the KMA issued a statement to clarify the issue.

According to the statement, a loan facility approved by the General Assembly from Fidelity Bank for the continuation of the Krofrom market was paid in excess of GH¢3.6 million.

“Sometime in 2020, the General Assembly approved a loan facility of GH¢5 million from Fidelity Bank for the continuation of the Krofrom market. Fidelity Bank disbursed an amount of GH¢8,622,347.56 to contractors based on certificates raised by the contractors and on the instructions of the Assembly,” the statement read.