VC exposed in 61 bn deal at UDS hostel

Investigations by The Chronicle into University of Development Studies (UDS) have uncovered mind boggling deals involving the Vice Chancellor, the former National Investment Bank (NIB) Managing Director, and the GETFund admin­istrators, in the handling of the University's affairs as it relates to its accommodation problem.

It also involves the broken promise made by the authorities that they would hand over the ultra-mod­ern three star Ghana Education Trust Fund (GETfund) Hostel used for the Ghana CAN 2008 tournament in Tamale to the students of the University for Development Studies (UDS).

It would be recalled that the GETfund Secretariat, prior to the CAN 2008 football tournament hosted by Ghana, decided to put up a magnificent Students' Hostel on the Tamale campus of the UDS, to reduce the problem of students' accommodation.

However, the erstwhile New Patriotic Party (NPP) administra­tion, in meeting the accommodation needs of the participating countries, directed that the Hostel be upgraded and turned into a lodging place for the teams, after which the hostel would be handed over to the students for use.

This assurance of takeover was not only pronounced by the then Board Chairman of the GETfund, but repeated by the former Northern Regional Minister, Alhaji Mustapba Ali Idris. The promise was made sacred when it was sealed by the for­mer President, John Agyekum Kufuor.

Surprisingly, the students have just come to realize that they had been completely denied the opportunity, even though several attempts were made and petitions sent by the UDS Students Representative Council (SRC) to ensure the facility was handed over to them.

As a result, Alhaji Mustapha Ali Idris, sometime in April 2008, promised the students of the govern­ment and GETfund's intention to put up a new 1000 unit hostel to replace the existing one, so that it could be run as a hotel to generate money for the University, since the facility was above the standards of students' hostel.

Meanwhile, The Chronicle's investigations have revealed that the ultra-modern three star Hostel has been sold to the UDS by the GETfund at the request of the Acting Vice Chancellor of the University, Prof. Kaku Sagary Nokoe.

It was purchased at a total sum of Six Million, One Hundred and Ninety-Eight Thousand, Nine ­Hundred and fifty-two Ghana Cedis. Thirty-six pesewas (GH¢6.198.952.36), representing over ¢61.9 billion old cedis and it is now being managed by a private individual, owner of the Crystal Rose Hotel in Kumasi.

Some secret documents covering the transaction between the office of the Acting Vice Chancellor of the UDS and the GETfund Secretariat, intercepted by The Chronicle have revealed that the University agreed to make payment for the facility over a three (3) year period and deposit One million, two hundred and forty thousand Ghana cedis (GH¢I,240.ooo.00) being 20% of the cost with the remainder being paid instalmentally over 3-years.

The paper has learnt that the Acting VC, Prof Nokoe wrote to express interest in the property to the GETfund, rather than request the Fund to hand over the facility to the UDS. He made it clear that he was very much interested in purchasing the hostel which is on University's land. UDS students in Tamale have little accommodation and have great need for hostels.

This expression of interest is evi­denced in a letter to the the GETfund Administrator dated March 14, 2008, with reference number VCL.27/Vol.2/08 under the title "Expression of Interest to Purchase the GETFund Hostel on the Tamale Campus of the UDS".

Another letter dated March 28 2008 was also issued from the office of the GETFund Administrator, Mr Fosuaba Banahene, indicating the approval of the Board of Trustees of the fund to sell the hostel of the UDS after which another letter copied to the Chairman, UDS Council, Daniel Gyimah was issued to acknowledge receipt of the approval signed again by Prof Nokoe, the Acting Vice Chancellor.

In fulfilling the payment obligations the Acting VC on April 18, 2008 wrote to the Managing Director of the National Investment Bank (NIB) Accra for a soft loan of One Million Ghana Cedis (GH 1 ,000,000) being part payment of the total of One million, two hundred and forty thousand Ghana cedis (GH 1,240,000) that the University" had proposed to GETfund as payment.

The loan request was hurriedly approved by the Bank, ostensibly due to the influence of the Managing Director of the NIB Daniel Gyimah, who is also Chairman of the UDS Council.

The Chronicle uncovered that the remaining two hundred and forty thousand Ghana cedis (GH 240,000.00) was taken from the Students' Academic User fee account in which 42 different cheques ( Cheque No. 005012 to 005053) were issued on the same date for the same transaction just to avoid suspicions from the students.

Meanwhile, the 1000 unit Student's Hostel promised the students last year, has not material­ised thereby leaving the students to still struggle for their own accommodation at exorbitant rates.

Checks by the paper at the Hostel have revealed that the facility was not attracting customers, ostensibly due to its long distance from the Tamale central district.

In an interview with The Chronicle at his residence in Tamale, the Acting UDS Vice Chancellor, Prof Kaku Sagary Nokoe insisted that the authority of the University proposed to purchase the facility to avoid loosing it to private companies or individual investors, after he had been hinted that the GETFund Board was planning to sell the Hostel.

"I had no diabolical intention or interest because i realised that the GETFund Hostel was the only investment the UDS can boast of and we aught to secure and protect it. We have now gone in for an investment partner to enable us cover the cost and also put finishing touches to the about 70 rooms that require some attention."

Prof Nokoe who threatened to prosecute this reporter and its publishing company and join its publishers as well, claimed that some people were up to malice just to shift blame on him, instead of government that had failed to honour its promise of handing over the controversial hostel to students.

According to him, even though the facility is being managed by Crystal Rose, it is still a property of the UDS and governed by a Board of Directors.

The controversial GETFund Hostel has the capacity to accommodate 640 students, The Chronicle has learnt.