Ghana police have charged former finance minister Kwame Peprah for causing financial loss of more that 24,6-million pounds sterling to the state while in office, the Ghana News Agency (GNA) reported on Monday.
The agency said the money was given to two companies to build hotels and they defaulted in their repayment.
GNA quoted the police as saying that in 1994 Ghana secured a British Export Credit Guarantee Department Loan of 32-million pounds from the Bank of Scotland.
Police said 16,23-million pounds were credited to the La Palm Royal Beach Hotel, while 15,77-million pounds went to Coco Palm Limited to build Five Star hotels in Accra.
The Government of Ghana through the Bank of Ghana guaranteed the loans, which the two companies were to repay from July 1996 to January 15, 2003.
In January 1997, Coco Palm paid back just under 5,07-million pounds and La Palm repaid 8,4-million, both amounts well below the sum to be returned.
The Bank of Scotland served the Bank of Ghana with a default repayment notice, which was subsequently referred to the Ministry of Finance. – Sapa-DPA