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Trouble Looms CAL Bank threatens to confiscate UG Hostels over unpaid debt

It has become necessary following the delay in the repayment of the loan facility the bank granted the institution towards the provision of about 7000 bed capacity hostel facilities.

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CAL Bank MD, Frank Adu play

CAL Bank MD, Frank Adu

Cal Bank has hinted a hefty law suit against the University of Ghana for failing to pay bank loans owed the bank.

This has been necessitated by the University and the governemnt of Ghana's inability to pay loan facilities provided for the construction of hostel facility for 7000 students.

In order to curb the accommodation problem on campus at the time, the university acquired the loan facilities from Cal Bank and six other institutions to put up the hostel facilities as part of Vice Chancellor Ernest Aryeetey's decongestion exercise in order provide adequate accommodation for the students.

Managing director of the Bank, Frank Adu, who was given an honorary degree by the University in 2014, put the blame on the shoulders of government for showing a lackadaisical attitude towards the payment of the loan after its attention was drawn to the fact the university was defaulting on the payment of the loan.

“We drew government's attention to the situation, they promised to take on the liability and settle the six banks involved, we haven’t seen the government neither have we seen any steps by way of settling that debt so we have taken the decision to go to court so very soon CAL bank will own 12,500 beds,”

Mr. also hit at the University of Ghana for failing to hold its end of the bargain even though student are making payments for the use of the hostels.

“We still have a situation with UGEL, the hostels the situation there is that the hostel is occupied and the students pay the residential user fees but the University does not service the facility"

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