By Ernest Bako WUBONTO
University of Media, Arts and Communication-Institute of Journalism (UniMAC-IJ), formerly the Ghana Institute of Journalism (GIJ), has had an investment gone wrong, as attempts to retrieve over GH¢11million in investment from NDK Financial Services prove futile.
The NDK Financial Services has been unable to pay back matured investments worth GH¢11,010,269 to the academic institution needed for development projects. Despite several efforts made by the institution to retrieve the funds, NDK Financial Services has indicated that it is insolvent, resulting in this unfortunate outcome.
The afore-mentioned condition deprived the institute of funds that could have been used to support its programmes and operations.
This unfortunate situation was revealed by the latest Auditor-General’s report on public boards, corporations and statutory institutions in 2023.
The Auditor-General highlighted that Section 91 of the Public Financial Management Act, 2016 (Act 921) provides that the Board of Directors of a public corporation shall ensure the efficient management of the public corporation’s financial resources, including the collection and receipt of money due to that public corporation.
However, UniMAC-IJ management has failed to retrieve investment funds due the institution since 2022. Nonetheless, the management expressed optimism about retrieving the funds soon.
“We noted that the institute had investments totalling GH¢11,010,269.16 with NDK Financial Services (NDK) but have been unable to recover these funds as at the time of our audit. We also noted that in 2022, the institute requested a redemption of part of its investment with NDK.
“However, the management of NDK could not honour the request, stating that the company was experiencing cashflow challenges and was not in the position to immediately liquidate the investment in a letter dated 15th February, 2022,” the Auditor-General stated.
UniMAC-IJ management response
UniMAC-IJ, in response to the Auditor-General’s findings, mentioned that the status of recovery of the investments with NDK Financial Services of GH¢11,010,296.16 has not changed.
“The financial institution has not been able to honour our request to redeem the investment. Management is committed to recovering the investment and for that matter, continues to pursue NDK Financial Services for the recovery of the locked-up funds. We are of the view that once the financial institution is still operating, our funds will be paid eventually; hence, our persistent demand for payment,” UniMAC-IJ responded.
The Auditor-General, in his recommendation note, urged the management to take pragmatic steps to recover the amount of GH¢11,010,269.16 from NDK Financial Services as soon as possible.
With UniMAC-IJ operating two campuses, Ridge and Dzorwulu, which demands students to sometimes shuttle the two locations, GH¢11 million is more than enough to buy at least five busses to help in that regard.
