KMA to sue 30 firms over ?300m PAF debt

THE Kumasi Metropolitan Assembly (KMA) has decided to send 30 organisations to court to compel them to pay back ?300 million they collected under the Poverty Alleviation Fund (PAF).

Mr Maxwell Kofi Jumah, Kumasi Metropolitan Chief Executive, who made this known in an interview, said the only means to collect the loans after persuasion has failed is to send the defaulters to court.

He said that the assembly has written to the organisations, giving them one month’s grace to pay up or risk court action.

He said currently the legal department of the assembly is processing the list of defaulters for action to be taken against them.

He said among the organisations that owe the assembly are Garden City Producers Association, ?30 million; Ayedekyew Grains Marketing, ?24 million; Nyamekyere Traders, ?23 million; and 31st December Women's Movement, ?10 million.

He indicated that although the time to start repayment of the Poverty Alleviation Fund become due last year, only ?2.6 million had been retrieved by November, representing less than three per cent of the amount.

He said the first disbursement of the loan was made in January 2000, while the last one was made in October 2000 and that the organisations should have started paying back by instalments before the end of the two year deadline.

He revealed that currently, the outstanding interest on the loan stands at ?17 million.

He said while the assembly has been able to locate some of the defaulters, others are yet to be identified, thus raising doubts about their existence.

He mentioned some of the groups as The Young Shall Grow, Adum Small-Scale Industries, Ala Sariki Association and Gymnastic Training Centre.

He said most of the organisations took the money without the necessary structures to retrieve it.

Mr Jumah gave the assurance that despite this hindrance, his outfit would identify all of them in order to compel them to pay back.

He said the problem is making it difficult for the assembly to provide support to new applicants.