Audio Attachment:Listen to Dr. Matthew Opkoku Prempeh on Peace FM's 'kokrokoo' programme.. |
The University of Ghana (UG), Legon, stands the risk of losing most, if not all of its assets, in the not-too-distant future.
That is if the premier public university fails to payback a loan of $64m.
This was disclosed by the Minister of Education, Mathew Opoku-Prempeh, Monday.
The amount was borrowed from Africa Integras, a private firm to construct Faculty offices on campus but ‘it cannot be accounted for’.
The University, back in 2015, entered into a Public Private Partnership (PPP) agreement with Africa Integras to invest US$64 million in the construction of 1,000 new students’ hostel beds for undergraduate and post-graduate students on the Legon campus. The project was structured as a 25-year Build, Operate and Transfer (BOT) contract.
The BOT agreement was signed by Professor Ernest Aryeetey, then Vice-Chancellor of the University of Ghana, on behalf of the University, while Ms Andrea Pizziconi, Managing Partner at Africa Integras, initialed for her Organization.
Some have raised questions about the deal, particularly relating to the overall cost to the University.
Speaking to Kwami Sefa-Kayi in a one-on-one interaction on Peace FM’s morning show, Monday, the Education Minister disclosed that the amount was borrowed “about two or three years ago according to Legon…the council has described it ($64m) as the worst contract the school had gone for and they didn’t even inform government before going for the loan.
UG needs to pay 10million dollars for 25 years and by the time they redeem themselves, they would have paid 250million. If they are not able to pay, their assets will be confiscated."
The Minister therefore wished public universities would involve government in its decision-making on such matters.
Asked if it will not be considered as interference on the part of government in the administration of the university, since the universities are considered to be autonomous, he said: "it is about time we realize that Management of a university is different from academic freedom…universities need to be open to government…they are not autonomous”
Background
In July 2014, under the leadership of Prof. Ernest Aryeetey, the UG entered a contract with Africa Integras, a private investment company with headquarters in New York, to construct five buildings for the university on a Build Operate and Transfer (BOT) basis.
The project was to consist of the construction of an expanded facility for the College of Humanities, a complex for the new College of Education, a new building complex for the College of Basic and Applied Sciences, a complex to house the Institute of Technology and Applied Science and a building for the College of Health Sciences to aid the university in relocating the medical school to the UG campus from its present location in the Korle Bu Teaching Hospital.
Graphic.com.gh reported in 2017 that the project has come to a standstill due to disagreement between the current Vice Chancellor (VC) of the University, Prof. Ebenezer Oduro Owusu, and his predecessor, Prof. Ernest Aryeetey, over the viability of the project.
Source: Rebecca Addo Tetteh/Peacefmonline.com
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THIS IS COMPLETELY FRAUD, MR ERNEST ARYEETEY IS A VERY BADDDDD MAN. WHY SHOULD YOU ENTER INTO SUCH A WICKED TRANSACTION OF LOAN AGREEMENT .. THIS WILL NOT GO ON WITHOUT PRESIDENT MAHAMA AND MINISTERS KNOWING NOTHING ABOUT IT .. THEY ARE ALL WELL AWARE.. WE HAVE PASS THAT LEVEL OF TRICKS AND CORRUPTION .. NDC HAS PLAYED A LOT BADD GAMES WITH US WE CAN,T ACCEPT THEM AGAIN , THE MOST ANNOYING PART MAHAMA AND HIS CROOKSSS STILL WANTS TO COME BACK AND RULE OUR MOTHER LAND GHANA .. OVER OUR DEAD BODIES .. CRIMINALSSSS
Masa; this was classic NDC Jon Mahama led CREATE ; LOOT AND SHARE MAKE NO MISTAKE ABOUT THAT !!!!!!; Jon Mahama was aware of thid FRAUD and as this arrogant Prof Aryeetey he is a pen pusher thiff and an acadamic criminal who sho should investigated and jailed for a long time ; the question is where is the cash -answer it has been shared amongst the academic boaord because they know the government will not allow the asset of the University to ssold ; IF IT IS NDC AND JON MAHAMA ; then you must no DOUBT it was FRAUD !!!!!to Dupe mother Ghana Prof Aryeetey is a CROOK !!!!!!
OMG where is prof Nkrumah? I miss this luminary. May his soul rest in peace. I knew Aryeetey was not good for the university when he started talking about task force amongst others. Anyway, that is for another day.
if short man oduro has nothing to offer the university, he vacate the post and dragging people hard earned reputation in the mud. all reasonable alumni and onlookers can bear witness prof aryeetey made the most positive impact on the reputation of university of Ghana. i knew from day 1 that prof oduro has no original idea to implement in the university because no managerial skills, hes just drawing salary. if claim someone has misappropriated money, you should even be expected to manhunt prof aryeetey to come explain things and not the other way round. I think prof oduro should be humble enough to seek some coaching from prof aryeetey and stop that short man political tantrum he is playing there
so all their cry for academic freedom is to steal, steal and steal. no wonder. couldnt they have gotten this money from internally generated funds gradually? looks like under Mahamas government all were emboldened to be stealers. God bless our homeland Ghana.
OH GHANA MY FATHER WAS THE MANAGING DIRECTOR OF STATE FISHING CORP COMMANDER N MANTE NAVY COMMANDER HE WAS SACKED UNDER RAWLINGS AND ASSETS FROZEN I WAS THEN IN SHS 5 THE REST IS HISTORY OH OH OH RAWLINGS WAS IT FAIR TO CHANGE OUR DESTINY I ALWAYS CRY WHEN I HEAR SUCH STORIES MY FATHER IS DEAD KNOCKED DOWN BY A CAR LET EVERYBODY HEAR MY STORY AND CRY FOR ME CALL 0242142302 AMEN
The project does not sound like a BOT contract to me. Under such an agreement in its strictest terms the University would have provided the land for the project whilst the other party/parties would bring their money and invest in the construction of the facilities. Upon completion, the private partner/parties will operate the facility to recoup their investments and some profit until total transfer to the university.The contract can also be structured in such a way that the transfer is phased. In such a case the cost will be shared in a proportion that the University takes some(likely the smallest) and the rest borne by the private partners. In that case the revenue being generated from operating the facilities will also be shared according to the proportion of their investments in the project in addition to any other fees agreed on by the two parties. It is therefore very strange and too early to be hearing such stories of project stagnation and contractual breach penalties when the facilities are not even in operation. The terms of reference and penalties for breaches are usually clearly spelt out to both parties in such a contract because of the capital-intensive nature of such projects. A breach by either party can result in severe financial losses to the other.So in this case if the whole $64million has been spent and the facilities are not complete what feasibility studies were done? And what kind of contract did the University represented by council sign at the time to expose them to so much risk? What due diligence was done about the capabilities of the partners to be able to finish the project? Or the minister of education is simply crying wolf? We need to know the truth because the facts as being presented seem inaccurate at best and confusing at worst?
The new Legon VC must be sacked. He doesn't know anything at all about the work that he has been given. He wants to use his 'Political Agenda' to ruin the University. I knew from the day he was appointed that he cannot make any remarkable achievements for the University.
if the construction didn't go on, where is the money? investigate, those who fall victims, jail them. Who pays the lectures in your so called premier university? Premier university with dead brains.Ghana don finished
Indeed what the educational minister is talking about is the truth, dont insult just because of political reasons but find out from any senior or junior staff and u will know the truth. These things must not be joked with.