The Bureau of National Investigations (BNI) is chasing 205 entities and individuals who have defaulted in the payment of loans they took from the Venture Capital Trust Fund between 2013 and 2014.

The individuals took GH¢18.2 million as loans and have defaulted in payment.

More than GH¢30 million in interest has accrued on the loan, which is yet to be paid.

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This was disclosed by the Chief Executive Officer (CEO) of the Venture Capital Trust Fund, Yaw Owusu-Brempong. He said this when he met with the Public Accounts Committee (PAC).

Contrary to Section 15 (5 and 6) of the Venture Capital Trust Fund Act, 2004 (Act 680) which states that the board shall within 28 days after the receipt of an application, grant the application if specified conditions were fulfilled, the Auditor-General observed that out of 154 files examined, 53, representing 34 per cent did not have documents to prove that the loans were approved.

Owusu-Brempong attributed this situation to the improper record keeping on borrowers.

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It was also revealed that GH¢1.3 million loans approved did not have terms and conditions, including interest rates, repayment amount, start and end periods between the fund and borrowers.

The situation, according to the CEO of the fund, who assumed office recently, made it difficult for the fund to monitor and evaluate the performance of the companies involved.

Despite all these situations, Owusu-Brempong said the Fund is doing its best to ensure that defaulters pay back the loans and accrued interest.

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“We are working to get maximum recovery,” Mr Owusu-Brempong said.

He added that the fund had been publishing names of defaulters in the newspapers to help recover the loans.

He promised that his administration will be more prudent in its dealings in order to prevent such a situation from happening again.