KMA-Krofrom Market: Fidelity Bank Sets Record Straight On Missing GH¢3.6 Million

Fidelity Bank Ghana has set the record straight on claims that GH¢3.6 million had gone missing from a project fund it holds on behalf of the Kumasi Metropolitan Assembly (KMA) and which is said to be part of over GH¢8 million loan KMA secured from the bank for redeveloping the KMA-Krofrom Market.

Reports indicated that only GH¢5 million was released and the remaining amount cannot be accounted for.

But Fidelity Bank, in a reply contained in an official statement copied to Ghmessenger, says “there is no missing or unaccounted for amount of GHS 3.6 million as indicated in KMA’s release”.

The bank explains that “the entire amount of GHS 8.6 million disbursed for Phase 1 of the project comprised GHS 4 million disbursed from Fidelity Bank’s approved facility of GHS 5 million and the KMA’s own funds of GHS 4.6 million disbursed from their contribution of GHS 5million towards the project”.

Read full statement below:

FIDELITY BANK GHANA LTD CLARIFIES ISSUES RAISED BY KMA REGARDING THE REDEVELOPMENT OF THE KMA-KROFROM MARKET PROJECT

Fidelity Bank would like to clarify some aspects of a press release issued by the Kumasi Metropolitan Assembly (KMA) on Friday, May 10, 2024, regarding the Krofrom Market Redevelopment Project. Below are the facts:

• In November 2020, KMA transferred an amount of GHS 5 million as advance mobilization into the KMA-Krofrom Market Redevelopment project account held at Fidelity Bank. Readers should kindly take note that these initial funds were from KMA’s own resources.
• In December 2020, at the request of KMA, Fidelity Bank approved a GHS 5 million short-term loan facility for the KMA-Krofrom Market Redevelopment project which was to be disbursed in phases based on the progress of work done.
• In February 2021, Fidelity Bank disbursed GHS 4 million out of the GHS 5 million approved short-term facility to KMA. The Assembly (KMA) then utilized the facility of GHS 4 million together with their own funds of GHS 4.6million to support payments to project contractors amounting to GHS8.6 million under the first phase of the project.

• In December 2021, KMA paid off the total outstanding facility of GHS 4 million to Fidelity Bank.
• From the foregoing records of Fidelity Bank Ghana, there is no missing or unaccounted for amount of GHS 3.6 million as indicated in KMA’s release. The entire amount of GHS 8.6 million disbursed for Phase 1 of the project comprised GHS 4 million disbursed from Fidelity Bank’s approved facility of GHS 5 million and the KMA’s own funds of GHS 4.6 million disbursed from their contribution of GHS 5million towards the project.
• Fidelity Bank reiterates that it has consistently maintained open communication channels with KMA regarding the project fund, exchanging letters and emails since April 5, 2023, to address inquiries and concerns. We have provided all necessary information as of September 27, 2023, and remain open to further communication. All correspondence is on record.

We would like to assure KMA and the public that we are fully committed to cooperating with any investigations or inquiries to address this matter comprehensively. Our priority remains upholding the highest standards of transparency, accountability, and integrity in all our dealings.

Fidelity Bank remains steadfast in our commitment to serving the best interests of Ghanaians, our clients and the communities we operate in.

Source: Ghmessenger.com