Joseph Kofi Adda, the New Patriotic Party (NPP) Member of Parliament for Navrongo in the Upper East Region, is in deep trouble. He is bankrupt.

As a result, the ex-Minister of Energy in the erstwhile NPP government, led by ex-President Kufour, has been hauled before an Accra Fast Track High Court for failing to pay a loan of GH¢43,999.88 granted him by a company called IFS Leasing Co. Ltd.

Court documents filed by IFS Finance and Leasing Co. Ltd cited by The Herald, avers that in October 2008, Kofi Adda was granted a loan facility of GH¢10,000.00 at an interest rate of five and-a- half per cent (5.5%) for a month .

This was per a credit facility letter dated October 31, 2008.

According to the documents, per a clause agreed on by both parties, the loan was to be paid by a single installment of GH¢10,550 by November 30, 2008, but, Kofi Adda “has willfully failed, neglected or refused to comply.”

Then in May 2009, the company said the ex-Minister collected another loan facility of GH¢15,000.00, also at an interest rate of five and-a- half per cent a month for two months. The credit facility letter for this loan was dated May 8, 2009.

According to the company, both parties agreed per a clause in the said loan agreement that the loan will be liquidated by two monthly installments of GH¢825.00 covering the period June and July 2009 and GH¢15,825 on or before August 8, 2009”.

But Kofi Adda, the company maintained, again “failed, neglected or refused” to pay his creditors.

According to the company, the two loan agreements were secured by a “memorandum of deposit dated October 31, 2010, duly executed by Mr. Adda using his Grand Cherokee vehicle with registration number GW2386 U and chassis number IJ46L48K03W588545” as a collateral.

But the MP has “persistently and flagrantly disregarded his contractual and debt servicing obligations regarding the said loan such that as at September 29, 2010, he was indebted to the tune of GH¢43,999.88 on which interest continues to accrue at the agreed penal rate.”

According to the creditors, all attempts, including demand notices dated January 20, 2010 and March 25, 2010 to Kofi Adda proved futile, hence their decision to pursue a legal course to retrieve their money. The company is, therefore, seeking an order for the recovery of GH¢43,999.88 being Kofi Adda’s indebtedness as at September 29, 2010.

It is also demanding the payment of interest of 7.5 per month from September 30, 2010 to the date of final payment.

The company is demanding, “Further, or in the alternative, an order for Judicial Sale of the Grand Cherokee vehicle” that has been used as collateral, “cost on a full indemnity basis and any other relief as the court may deem fit.”

IFS Financial and Leasing Co. Ltd is a registered non-banking financial institution. It is being represented by lawyer Kwame Akyianu. The case is before Justice C. J. Honyenugah.