Renowned businessman and Chief Executive Officer of Engineers and Planners, Ibrahim Mahama, through his legal representatives Robert Smith Law Group, has demanded a public retraction and an unqualified apology from renowned investigative journalist Manasseh Azure Awuni for statements published in his latest book, “The President Ghana Never Got”, over alleged debt to Merchant Bank.
The statements in question, according to Mr Mahama’s legal team, falsely claim that he was a major debtor to the former Merchant Bank, now Universal Merchant Bank (UMB), contributing to its financial struggles and subsequent sale in 2013.
The controversy stems from Mr Awuni’s description in his book, where he discusses the sale of Merchant Bank to Fortiz Private Equity in 2013.
“At pages 98 to 99 of your latest book ‘The President Ghana Never Got’, you published as follows ‘The Universal Merchant Bank (UMB), formerly stated owned Merchant Bank, generated uproar in 2013 when it was sold to a private equity firm, Fortiz. At the time, FirstRand Bank of South Africa was said to be willing to pay GHS 176 million for 75% of the Merchant Bank’s shares, while Fortiz offered only GHS 90 million for 90% of the shares in the state-owned bank.
“The controversy deepened when it emerged that a brother of President Mahama, Ibrahim Mahama, was of the big debtors of the then Merchant Bank, which resulted in the bank’s struggles’. In the said publication, you did not make reference to the source of the information you published. We, therefore, assume that you have presented the alleged indebtedness of our Client to Merchant Bank as fact personally known to you.
Bobby Banson Esq. Lawyer for Mr Ibrahim Mahama
Clarification of Facts
Lawyer Bobby Banson, legal counsel for Ibrahim Mahama, categorically refuted these claims, emphasizing that Ibrahim Mahama has never been personally indebted to Merchant Bank or its successor, UMB Bank.
According to the letter, Mr Mahama has never applied for or received any loan facility from the bank in his personal capacity.
Instead, Lawyer Bobby Banson clarified that Engineers & Planners Company Limited, a distinct legal entity in which Mr Mahama is involved, took a loan from Merchant Bank.
The legal letter further stated that in February 2014, Engineers & Planners Company Limited settled its debt to Merchant Bank in full, amounting to $28 million.
The documentation from the Merchant Bank confirming the complete settlement of the debt were all provided to support the above claim.
Legal Proceedings and Misreporting
The legal team also disclosed that in 2023, Engineers & Planners Company Limited initiated a court action against UMB Bank.
This action, Lawyer Bobby Banson noted sought several declarations, including confirmation that the debt had been fully paid and that UMB Bank’s report to credit bureaus and regulatory agencies about the alleged indebtedness was incorrect.
“A copy of the Writ of Summons and Statement of Claim is attached as Annexure 2. 7. After being served with the said Writ of Summons and Statement of Claim, UMB Bank filed a Statement of Defence wherein it admitted that all the debt had been paid and further averred that it had instructed the Credit Bureau Agencies to amend their records accordingly. A copy of the Statement of Defence is attached as Annexure 3”.
Bobby Banson Esq. Lawyer for Mr Ibrahim Mahama
Despite these clarifications and legal proceedings, the letter pointed out that Manasseh Azure Awuni failed to verify these facts before publishing his book.
The lawyer for Mr Ibrahim Mahama argued that such negligent reporting has significantly damaged Ibrahim Mahama’s reputation, leading to adverse effects on his business relationships and causing distress among his family and friends.
Demand for Retraction and Apology
Given the gravity of the situation and the purported impact of the publication, Mr Mahama’s legal team issued a seven-day ultimatum to Mr Awuni to retract the statements and issue an apology.
The letter stressed that should Mr Awuni fail to comply with the demand, Mr Mahama’s lawyers pursue legal action to seek redress and restore their client’s reputation.
“Please be advised accordingly”, Bobby Banson Esq. ended
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