VCTF should not go the way of PAF

Managers of the newly created Venture Capital Trust Fund (VCTF) have been called upon to ensure that beneficiaries of the fund repay their loans to enable the government achieve the purpose for which it was instituted.

Speaking at the launch of the VCTF in the Eastern Region at Koforidua, Madam Suzzy Mensah, out-going Deputy Eastern Regional Minister and Nana Akwasi Adjei Boateng, New Juaben Municipal Chief Executive, expressed concern about the fate the Poverty Alleviation Fund suffered and urged the VCTF mangers to strive to avoid the Fund treading the same path.

While lauding the establishment of the trust, which among other things is to support small and medium scale enterprises to expand, Nana Adjei Boateng also reminded the mangers that similar schemes folded up after a few years of operation "mainly due to non-recovery of loans granted to beneficiaries".

He said with that experience managers of the VCTF should only deal with businessmen and women who are "willing to use the money to do legitimate business".

The MCE said the board of the VCTF should demonstrate their commitment to make the trust a sustainable one while at the same time ensuring to be "faithful, transparent and prudent" in the management of the fund to benefit the people.

Madam Mensah said the government would keep an eye on the VCTF to ensure that it does not fail.

The Chief Executive Officer of the VCTF, Nana Osei Bonsu, gave the assurance that, the Fund would endeavour to be successful in breeding successful small and medium scale entities.

He said the management of the trust had established an investigative panel to examine the track record of businesses before the granting of loans.

Nana Bonsu said as a way of forestalling what occurred in the past, the trust would be part of the management of companies it supported to give the best technical advice aimed at ensuring that loans were not misapplied.

He said all entities granted loans demonstrated the capacity to be viable and repay the loans.