ST PAUL’S COMPUTER DEBT REPAYMNET PLAN

King A. Rich Enterprise supplied 50 desktop computers to St Paul’s in 2008 for computer laboratory project on credit at the cost of GH¢45,000.00. The supplies were done under the leadership of Mr Adzamli, the then headmaster. Upon a change in the leadership at the school, no effective follow-ups were done, resulting in the school defaulting in payment of the debt.

After several fruitless attempts to recover the debt, King A Rich Enterprise subsequently contracted International Energy Insurance (IEI), which also doubles as debt collectors, to retrieve the debt owed by St Paul’s Senior High School.

Late last year, IEI consequently sued SPACO to recover the debt.  The Old Boys became aware of the case in January 2012, and quickly approached and impressed on the actors to withdraw the case out of court. The Old Students later reached an agreement with the debt collectors for the repayment of the indebtedness.

Representatives of the old students association led by the President, Conqueror Sesi Dzakpasu, in the company of the Assistant Headmaster of the school, Mr G. K. Sylvester Akpakli, met a team from IEI for the final negotiations on March 27, 2012.

The IEI team included the Chief Operating Officer, Mr Stephen E. Hanson and the Head of Reinsurance, Nana Yaw Owusu Dwomoh. The negotiation was witnessed by Enyonam Adinyira for the Insurance company and Mr Peter Addo-Adotey, a past SPOSA president, for SPACO. 

A bargain was reached to reduce the cost of the debt by GH¢ 10,000 to GH¢ 35,000.
The following agreement/restructuring was reached:

Payment schedule	Effective Date	Amount (GH¢)
1st instalment	May 31, 2012	12,000.00
2nd instalment	September 30, 2012	11,500.00
3rd and final instalment	December 31, 2012	11,500.00
Total		35,000.00

Memorandum of Understanding
The schedule of repayment was done after certain basic agreements.
First, the negotiating parties agreed that all accrued interests on the debt be waived to give reprieve to the school.
Second, that the school should henceforth keep strictly to the new payment schedule and that the IEI should be free to issue a writ of summons to the school 14 days after it defaults in paying the first instalment.

Fund mobilization strategy
The President and his team together with the headmaster and some other members of staff involved agreed to levy each student an amount of GH¢ 5 a term for 3 terms. With a student population of 1600, it is estimated that we should be able to clear the debts in three instalments as per the structure above.