Regent University To Be Auctioned To Offset Debt?

A Commercial Court in Accra (High Court Division) has given a construction firm the authorisation to attach immovable and movable property of Regent University College of Science and Technology for auction to defray debt of 1,284,080 dollars and 2,139,789 Ghana cedis the University owe.

On May 13, this year, the Court’s bailiff served a Fieri Facias against the University’s movable and immovable property over the debt it owned Obokom Construction Civil Engineering Limited.

The move by Obokom Construction Civil Engineering Limited is to execute the judgement of the Court delivered in March 2019 against the University.

The Construction firm, through a competitive process, entered into contract on April 10, 2014 with the University to construct a six storey multi-purpose building for it. The facility was completed and handed over in May 2016 to the University.

A brief on Execution of Judgement made available to the Ghana News Agency in Accra on Thursday explained that the university would start paying the construction firm after a year’s grace period.

When the University was due to pay, it failed to honour its obligation.

Meanwhile the construction firm used its own resources worth One million Ghana cedis in 2015 to guarantee a loan it obtained from then Unicredit Ghana to enable it to pay the claimant.

The Regent University College of Science and Technology issued six post-dated cheques, which were dishonoured and as a result the financial institution used the construction company‘s deposit of one million Ghana cedis to offset part of the debt.

This led to a court action between the Construction Company and Unicredit and judgement delivered in October 2019.

After several notices served on the University to pay its debt had failed, the construction firm instructed its lawyers to proceed to court and judgement was entered in favour of the construction firm in March 2019.

Based on that, a payment plan was drawn but the University made one payment thereby defaulting in the payment plan per the court orders.

Three separate meetings were also held by parties but no payment was made.

Obokom Construction Civil Engineering Limited opted to apply for a Fieri Facia on the Immovable and moveable property of the University.
Bailiffs therefore proceeded to attach the University’s property.

This makes way for an auctioneer to value the property to offset total debt of 1,284,080 dollars and 2,139,789 Ghana cedis.