We haven’t auctioned Regent University to offset debt – Registrar

The Registrar for Regent University College of Science and Technology has denied media reports suggesting that the school has been auctioned to defray a debt owed Obokom Civil Engineering Limited.

The University in a statement, however, admitted that it had to settle some financial obligations towards the construction company.

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“We have taken notice of publications circulating online and in the news media regarding the seizure and auction of some assets of Regent University College of Science and Technology (RUCST).”

“Certainly, we have some financial obligations towards Obokom Civil Engineering Works Limited in respect of one of the buildings of the Institution. The company and its owner, Nana Obokomata IX has secured a court order against the property, but we are still in discussion with the company and its owner and we expect an amicable settlement soon. Secondly, the report that RUCST has been auctioned is incorrect,” the statement said.

According to the registrar, Regent University also pointed out that the current development will not affect academic activities.

“The current matter does not interfere in any way with the academic functioning of the University. Please, stay calm, and rest assured that everything will be resolved shortly.”

Background 

Obokom Civil Engineering LTD is said to have sealed a contract with Regent University College of Science and Technology to construct a six-story multi-purpose building for the University.

The contract, among others, stated that the University will start paying the construction company a year after completion of the facility.

Registrar of Regent University denies that school is to be sold.
The campus of Regent University

The University, however, failed to honour its financial obligation, forcing the construction company to secure a loan (GH¢1,000,000.00) from Unicredit Ghana Limited.

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The University subsequently issued six post-dated cheques which were dishonoured. Unicredit, as a result, used the construction company‘s deposit of one million Ghana cedis to offset part of the debt.

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

After the University failed to pay its debt, despite numerous notices, the construction firm instructed its lawyers to proceed to court. The ruling favoured the construction firm.

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Source: citinewsroom.com

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