Fallout From CASHPRO Case ? Ahwoi?s House For Sale

The case in which the Agricultural Development Bank (ADB) has filed a suit against Mr Ato Ahwoi?s Cashew and Spices Products (CASHPRO) Ltd., seeking the repayment of an amount of over sixteen billion cedis, (?16 billion) being outstanding balance in payment guarantees, loans and overdrafts, has taken a new turn.

Speaking to newsmen in an exclusive interview, counsel for ADB, Lawyer C.K. Mintah, informed newsmen that he has filed an order at an Accra High Court for judicial Sale of CASHPRO?s two houses situated at Haatso, and East Legon, which were used to secure the credit facilities for CASHPRO Ltd, at a value of ?5,649,563,172. He stated that the two houses which belong to Ahwoi, will be valued and subsequently auctioned, since the two houses were used as property to secure the ?5 billion loan.

?As of now, I am only waiting for the court?s order,? be hinted. According to him, if the value of the two houses do not reach the ?5 billion loan, then they will go after the property of the eight guarantors which includes 73 acres of land situated at Bortianor, in Accra, to secure it.

Lawyer Mintah submitted that his action is in accordance with the High Court?s ruling, in which it granted partial judgement of ?5 billion against CASHPRO. The court also awarded a cost of ?4 million against the Ahwoi Brothers.

On the remaining ?11,000,000, due ADB, Lawyer Mintah disclosed that they are gathering documents and papers to recover it. He explained that since the ?11 billion is not a liquidated amount, they have to gather evidence by way of overdraft, loans and facilities, granted by ADB to CASHPRO. He added that they will soon do this to retrieve the ?11 billion. The facts of the case are that between 1993 and 2000, the first defendant, CASHPRO Ltd, applied for, and approved by ADB, two loans of ?195,000,000 and ?102,322,666.67, for the purchase of maize under an inventory credit system, and participation in the plaintiff bank?s nucleus out-grower scheme, respectively at ADB?s Swedru branch.

ADB claims that between October 1993 and September 1999, several credit facilities were granted upon application by CASHPRO Ltd, either as term loans, payment guarantees, overdrafts inventory and credit facilities. The bank revealed that short-term, medium or long term loans in nature were granted at different interest rates to CASHPRO.

According to ADB, between the period of 1993 and 2000, CASHPRO enjoyed, at least, twenty six (26) credit facilities from ADB.