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A Consortium of banks led by Cal Bank has taken the University of Ghana to court over delay in the payment of a syndicated loan contracted for the construction of seven hostels to address the shortage of students residential accommodation.
The Managing Director of Cal Bank, Frank Adu explained that even though the hostels have been given out and the University is collecting rent from the students, the loan is not being serviced.
He said when the banks wanted to take action against the University, government stepped in and offered to settle the indebtedness but since then, government has not shown any commitment towards settling the debt despite several efforts.
The banks therefore had no option but to seek redress in court.
In 2007, six banks namely Cal Bank, Fidelity Bank, SG- SSB, ECOBANK, ADB AND International Bank contributed about 26 million Cedis for the development of hostel facilities in Legon to address the challenge of accommodation.
The project was completed in 2010 however the University has failed to honour the debt obligations even though students who occupy the facility pay promptly.
GBC
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