Former MP, Absa Bank chased for unpaid loans to traders

The Audit Service is chasing the former Member of Parliament (MP) for Nhyiaeso, Mr Kennedy Kwasi Kankam, and the management of Absa Bank for the recovery of GH¢500,000, given as soft loans, to some 430 traders.

The amount was the MP’s Constituency Labour Project Fund and the Social Investment Fund (SIF), which was paid to the Krofrom branch of Absa Bank and disbursed to the traders.

According to a memorandum with the assembly, the bank was supposed to recover the loans from the traders.

Checks by the auditors, however, revealed that the bank had failed to recover the loans, from the beneficiaries.

Management letter

In a management letter dated March 19, 2021 and addressed to the Coordinating Director of the Kumasi Metropolitan Assembly (KMA), the service directed the assembly to take steps to recover the loan from the MP, the bank, the former Coordinating Director and the Finance Officer of the assembly.

"We recommended that the MP, Mr Kennedy Kwasi Kankam, the erstwhile Finance Officer and the Coordinating Director, Mr Daniel Kofi Kankam and Mr Samuel Donkor, respectively, as well as Absa Bank, Krofrom branch should take steps to recover the amount of GH¢500,000 into the KMA MP for Nhyiaeso Common Fund Account”, the audit report stated.

Reclassification

Meanwhile a letter written by Mr Kankam, dated September 10, 2020 and addressed to the KMA, asked that the loans be reclassified from soft to business start-up capital.

According to the MP, most of the traders who plied their trade at the Kumasi Central Market were affected by the COVID-19 lockdown and the eventual demolition of the market for redevelopment.

As a result, he said most of the traders lost their capitals and were unable to repay their loans and was of the view that the reclassification would help alleviate the plight of the beneficiaries, most of whom were now home with no source of income.