Ghana – Myroc Food Company refuses to pay back $16m govt loan

A private food processing firm Myroc has refused to pay back a loan of  $16 million given to it by the government of Ghana.

According to the 2015 performance audit report, the Trade Ministry doled out the money to Myroc Food Processing limited as a loan in 2013.

However, four years on, the company has defaulted in repaying the facility, which was issued at an interest rate of 12.5 %.

The auditor general has indicted the Ministry of Trade and Industry for failing to recover the money.

Deputy Minister of Trade Ahomka Lindsay and his chief director told the Public Accounts Committee they are helpless in recovering the loan.

According to them, the agreement did not contain any punitive measures in case of default.

“As I explained, this was driven by government access as stimulus package and normally stimulus packages; that is why it is called a stimulus package, so the conditions are different from a normal loan that is granted.

“…That is not the intention, the intention is that he will repay the load and we will follow up,” the chief director of the ministry Dawarnoba Baeka told PAC.

In 2014, Merchant Bank dragged Myroc to court  over loan repayment.

The bank won the case and initiated steps to sell assets of the company to recoup the debt.