Financial crisis hits University of Ghana.

The University says it is unable to borrow for a third time to pay salaries

It has emerged that the University of Ghana (UG) is in a serious financial quagmire, a situation that has compelled authorities to borrow money to pay salaries of staff and workers for the last two months.

Salaries of staff for March 2018 is set to delay as authorities of the premier University have ceased borrowing to pay salaries due to what appears to be issues of creditworthiness.

The current situation at the University has been occasioned by what authorities say is the delays in the processing and releasing of government subvention for January and February 2018.

“The University community is informed that processing and release of compensation subvention for January and February 2018 has been delayed; therefore, payment of March 2018 salaries cannot be made as scheduled” a memo to the staff and workers stated.

The memo, signed by the University’s registrar Ms Mercy Haizel Ashia and dated March 21revealed, “It is not possible to borrow for a third month to pay salaries”.

The University said it is making efforts to ensure that “the delay is not prolonged”.

‘Albatross’ loan

Education Minister Dr. Mathew Opoku Prempeh in February this year revealed the University was broke and struggling to pay back a 64 million-dollar loan it borrowed to construct Faculty offices on campus.

Mr. Opoku Prempeh who was speaking on Accra-based Peace FM said the project had stalled and the money cannot be accounted for.

The University, according to the Minister, is required to pay back 10 million dollars to Africa Integras every year for a 25-year period for the principal loan of 64million dollars.

“[The] UG needs to pay 10million dollars a year for 25 years and by the time they redeem themselves, they would have paid 250million. If they are not able to pay, their assets will be confiscated,” he said.

By Stephen Kwabena Effah|3news.com|Ghana