KMA prosecutes rate defaulters

The Kumasi Metropolitan Assembly (KMA) has begun the prosecution of rate defaulters at the various courts in the metropolis to compel them to pay all outstanding debts owed it by individuals and companies.

The first batch of about 100 defaulters were arraigned before the Ashanti New Town Magistrate Court II on Tuesday during which judgement was given against five of them for defaulting in the payment of property rates.

The five are O. P. D. Oppong of Asokwa Industrial Area, Anthony Timbers, Sugar Hill Hotel of Adiembra, Handy Paints of Atimponya and CDC Laundries.The cases of three other defaulters, namely S. O. Boateng of Nhyiaeso, Edward Nassar and P. K. Manu of Suntreso Extension were adjourned to January 13, 2003 due to the inability of the bailiffs to serve the writ of summons on time.

Those who were arraigned before the court owed the KMA between ?2.6 million and ?4.6 million.The Presiding Judge, Mr. S. K. A. Asiedu awarded between ?200,000 and ?400,000 cost against them and further ordered them to settle their indebtedness including interests within seven days or have their properties attached.

A motion filed by Sugar Hill Hotel to set aside the writ of summons issued against it was struck out by the court as incompetent.The KMA was represented in court by Messrs Isaac Acheampong and Richard Apiedu, both of the General Law Consult, external solicitors of the assembly.

Later in an interview, Mr Acheampong said the remaining defaulters have been grouped and scheduled to appear before various courts beginning January 13, 2003. He said the assembly cannot pursue its development agenda if companies and individuals continue to default in the payment of rates and said every legal means would be pursued to compel them to pay.

Mr Acheampong, however, said legal action would be halted against the defaulters if they make satisfactory arrangements to clear their indebtedness before writ of summons is issued against them.

"Most of the property rate defaulters are in arrears of up to four years, a situation which cannot be tolerated any longer", he warned.