Probe Universal Merchant Bank over 275 buses – Jinapor

Member of Parliament for Yapei Kusawgu has called on the Bank of Ghana to investigate the Universal Merchant Bank for funding the procurement of 275 buses for the New Patriotic Party, NPP.

He argues that the bank’s decision to grant the NPP such a hefty amount of money exposes it to serious risk, adding that the loan should have been syndicated.

Syndicated loan is a form of loan for businesses, in which, two or more lenders jointly provide loans for one or more borrowers on the same loan terms and with different duties and sign the same loan agreement.

“It is not out of nothing that the BoG advises banks to always syndicate in huge ventures such as this. As I mentioned before, it poses serious financial risk to the bank.

“…That is why some of us are calling on the Bank of Ghana to investigate the bank whether some financial regulations were breached during the transaction,” John Jinapor said on Joy FM.

Mr Blay as part of his campaign for the chairmanship position of the party promised to purchase the buses for distribution to the various constituencies across the country. The buses that are believed to cost over $11 million dollars are reportedly funded by Merchant Bank.

The vehicles which arrived three days to the NPP national delegates’ congress scheduled for Koforidua in the Eastern has become topical as many have accused Mr. Blay of vote buying.

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