The 2015 Auditor General’s Report has indicted Venture Capital Trust Fund for giving over GHc 1.4 million in loans without due approval.
Venture Capital Trust Fund was established in 2004 to provide low-cost financing to small and medium enterprises.
According to the report, there were no documents to prove that about 53 individual loans were actually given out.
The report also says, while over GHc 1.3 million was given out in loans without any agreement with the borrowers, about GHc 915,000 was also granted in loans without any information on the location and registered offices of the borrowers.
These infractions are, however, being investigated, according to the Chief Executive Officer of the Trust Fund, Yaw Owusu Brempong, who was speaking on Monday before Parliament’s Public Accounts Committee.
“Going through the loans that were granted between the period of 2010 to August 2015, I have identified a number of irregularities; some including the no application letters, some no offer letters, some certificates of incorporation even being faked…”
“In total, about GHc 18.2 million had been granted as loans and because of these irregularities, payments have not been coming,” Mr. Owusu Brempong said.
The company also has GHc 30 million outstanding in interests accrued.
“Because of these irregularities, we are working with institutions like EOCO and the BNI and they have all the 205 loans that were granted. We are cooperating with them and the people who are culpable will be brought to book,” he noted.
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By: Sixtus Dong Ullo/citifmonline.com/Ghana