Engineers and Planners (E&P), the company said to be owned by Ibrahim Mahama, younger brother of sitting President, His Excellency John Dramani Mahama, accused of indirectly helping in the insolvency of Merchant Bank after failing to settle a loan it contracted from the bank, has for the first time spoken to the issue.
E & P, the largest indigenous (Ghanaian) mining contract company with over 15 years experience and specializing in the management and hiring of heavy duty plant, equipments and machinery, haulage, oil and gas, land reclamation and restoration, dam construction and mining says they remain fully committed to the repayment of the loans.
Deputy Communications Director of the NPP, Yaw Buabeng Asamoah, at a press conference he addressed on behalf of his party, alleged that the Social Security and National Insurance Trust (SSNIT), has been forced by the President to use funds of suffering Ghanaian workers to retire a GH�57.2 million debt owed by his brother, Ibrahim Mahama, to struggling Ghanaian bank, Merchant Bank.
Mr Buabeng Asamoah explained that SSNIT, which held a 98% stake in the Merchant, in August this year, sold 75% of its stake to South African Bank, First Rand. At the time of the sale, Merchant Bank was reeling under some GH�330 million debt, with Ibrahim Mahama being the largest debtor, contributing 19.2% of Merchant Bank�s total indebtedness.
But in a statement signed by its Chief Finance Officer, Sulemana Ahmed Amidu, Engineers & Planners confirmed securing financing from two local banks during the previous NPP administration.
The statement however indicated that what has created �debt repayment difficulties� for E&P is that for some yet-to-be identified reasons, the banks decided in 2007 to convert the five-year term loan into a three-year term loan.
��For some unknown reason, the banks in 2007 suddenly converted the financing into a three-year term loan. Naturally this created debt repayment difficulties for Engineers & Planners. Under the previous and current administration, arrangements have been made to refinance the loan through a multilateral funding agency. Engineers & Planners is mindful of its confidentiality obligations to third parties regarding the steps that are being taken to re-finance the debt, and therefore is unable to reveal the details of the funding, save to say that it has been approved after due diligence�The Finance documents have been signed, stamp duty and other fees in excess of GHs 2 million have been paid on all documents and collateral registered here in Ghana,� the statement said.
Source: Engineers And Planners Co. Ltd
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