AT A GLANCE
The University of Ghana through the University of Ghana Enterprise Limited (UGEL) contracted a loan of GH¢43,000,000 from a consortium of six banks
The outstanding balance on the loan as at 31st December 2015 was GH¢211,718,663.
UGEL’s financial statements as a company has never been audited
Also Read: Bawumia not in hospital, lives in “small rented flat” in London” – Gabby Otchere-Darko
The University of Ghana and the government of Ghana risk paying over GH¢200 million in judgment debt as a result of the failure of the University of Ghana Enterprise Limited (UGEL) to pay a loan contracted in 2008.
UGEL, which is a wholly owned company of the University of Ghana, responsible for hospitality activities contracted a loan of GH¢43,000,000 from a consortium of six banks with the University of Ghana as a guarantor of the loan in February 2008 but has since failed to repay the loan.
Also Read: Making love between 12am and 3am is dangerous – Pastor warns Ghanaians
A review of the 2017 Auditor General’s report by iWatch Africa revealed that the lenders have instituted a suit against the University to recover the amount owed by UGEL.
The outstanding balance on the loan as at 31st December 2015 was GH¢211,718,663. The case has not yet been determined according to the report.
Also Read: OccupyGhana threatens to sue births and deaths over names ban
“Our checks also indicated that UGEL’s financial statements as a company registered under the Ghana Companies Act, 1963 (Act 179), has never been audited to establish its state of affairs and to assess its ability to generate sufficient revenues,” iWatch Africa’s Policy Analyst, Gideon Sarpong noted.
The Auditor General has indicated that the University of Ghana and for that matter the Government of Ghana risk being liable for the repayment of loans guaranteed, and this could have a material impact on the cash flow of the University.