Regent University College up for Auction

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One of Ghana’s finest private universities, Regent University College of Science and Technology, is up for auction. The decision is said to conform with the directions of a court ruling to have debts owed to Obokom Civil Engineering Ltd, settled. As of yesterday May 13, buildings of the educational institution including cars and a generator, have all been put up for auction. A commercial court had as of May 13 2020, served a Fieri Facia against assets of the institution in settlement of a debt totalling GHS 3,423,879.49 owed the Civil Engineering Company.

Reports indicate that through a formal bidding process, the plaintiff, (Obokom Civil Engineering Ltd) won the bid to construct a six-storey multi-purpose building for the defendant (Regent University College) in a contract entered into on April 10 2014. The terms of the agreement had it that the plaintiff was to self-finance the construction and the payment of the entire contract amount payable at maximum, April 18 2017.

The plaintiff (Obokom Civil Engineering Ltd) had its part of the contract fulfilled and handed over the building to the education institution. Though the institution took ownership of the facility and had been using it for its purpose, the leadership of the educational institution have failed to meet their payment responsibility under the contract. Speaking on the issue, Chairman of the construction company, Nana Obokomata IX emphatically stated that, his outfit helped that institution to secure a loan by making available a deposit of GHS 1,000,000.00 to serve as collateral for this purpose.

By this, the University was able to secure a loan facility from UniCredit Ghana Limited in the year, 2015. In fulfilment of its debt to the bank, the University issued six cheques which were said to be post-dated to UniCredit Ghana Limited. The bank dishonoured three (3) out of the six (6) cheques. On this count, the financial institution fell on the deposit of GHS 1,000,000.00 made by the plaintiff to defray part of the debt owed to it by the defendant (Regent University College).

Reports indicate that in 2015, under the leadership of the Chancellor, Rev. Prof. Kingsley Larbi, the University secured a loan amount of GHS 12,000,000.00 from Royal Bank aimed at helping the institution expand its existing facilities. The plaintiff holds the belief that the University could have extended part of the amount secured in settlement of the amount owned them, but not even a pesewa was paid to them. Because the University owed them in contract amount, the expansion works for which the new loan had been secured was extended to a Chinese construction firm.

The plaintiff acknowledges that the work done by the Chinese firm did not meet the standard. Several demand notices were furnished with the institution, but it failed to fulfil any of them. The plaintiff, at this point, had no option but to take the case to court. Reports indicate that the case expanded between May 2018 and March 2019.  Of course, the ruling went in favour of the plaintiff, and the court ordered the defendant to pay the amount owned at agreed schedules.

The plaintiff acknowledges that Rev Prof. Emmanuel Kingsley Larbi (Chancellor) and Albert Kobina Amonoo (Vice President) representing the educational institution signed to the repayment schedule but only met GHS 500,000.00 out of the total amount owed the plaintiff. Nana Obokomata IX further stated that his outfit had held three different meetings with the educational institution after the court ruling, but, the defendant has failed to meet the amount due to his outfit.

He concludes that his outfit had no option but to apply to the court for a Fieri Facia on the properties (both movable and immovable) of the educational institution.

 

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