President John Dramani Mahama has stated that neither he nor the government has intervened in the loan indebtedness of his brother’s company, Engineers and Planners (E&P), to the Merchant Bank.
He said at no time did he use executive power to try and influence Merchant Bank to do anything in relation to that loan.
President Mahama has, therefore, urged the Social Security and National Insurance Trust (SSNIT) and Merchant Bank to set up a task force to retrieve their debts.
President Mahama was answering a question on his alleged intervention in the indebtedness of E&P to the Merchant Bank at a news conference that marked the first anniversary of his tenure at the Flagstaff House in Accra yesterday.
Engineers and Planners
President Mahama recalled that E&P, as a corporate entity, secured a loan from the Merchant Bank in 2007.
"It was given this loan for reasons that are between Merchant Bank and Engineers and Planners," he said.
President Mahama said although E&P was owned by his brother, Ibrahim Mahama, he had no interest in that company.
He recalled that the attention of President John Evans Atta Mills and he (John Mahama), then Vice-President, was drawn to the fact that Merchant Bank was in trouble and that the bank would collapse because of the debts that were owed it.
“The President called a meeting which I attended to discuss the distress in which Merchant Bank was," President Mahama said, adding that one of the debtors of Merchant Bank was Engineers and Planners.
He said even though he (President Mahama) sat in that meeting, ”I must say that out of that meeting, no intervention was made to direct Merchant Bank to do anything. I can say confidently that no intervention was made.’’
"At no time had I used executive power to try and influence Merchant Bank to do anything," he stressed.
President Mahama said when he became the President, he could have influenced the SSNIT Board or dismissed the Merchant Bank Board, but he did not do that.
The President said he had, therefore, not played any role that showed a conflict of interest.
Pay your loans
President Mahama called on E&P and other debtors of Merchant Bank and other banks to pay back their loans.
"I think if you owe a bank you must pay Whether it is Engineers and Planners or 'Abenwaha Enterprises, if you owe a bank, go and pay," he added.
Challenge to SSNIT, Merchant Bank
President Mahama challenged the SSNIT and Merchant Bank to take steps to recover their monies.
"So I want to urge Merchant Bank and SSNIT to put in a task force to retrieve their debts”, he said.
President Mahama wondered how the banks would be able to provide credit for the business community, if they were run in that manner.
The President said the reason why credit was expensive in Ghana was bad debts, and asked all Ghanaians to try to service their loans.