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The Kumasi Metropolitan Assembly (KMA) might face legal action by Francos Enterprise Limited for breach of agreement.

The KMA and Francos Enterprise Limited have since February 15, 2012, entered into an agreement to develop a parcel of land at Kejetia Pampaso, under a Build Operate and Transfer project (BOT). A building permit for the construction of a single storey building for commercial purposes was thus approved and issued by the Kumasi Planning Committee on November 2, 2011.

Per the agreement, Francos Limited was to exclusively operate the project without any interference from the KMA or any individual. The leasehold agreement, which took effect on March 1, 2012, provided that the BOT would expire in 30 years, yet the KMA, on February 16, 2016, arbitrarily demolished a 50-seater toilet, 24 bathrooms, four urinals, four dressing rooms, and an office constructed under the said BOT.

Mr. Francis Owusu, Managing Director of Francos Limited, complained that the KMA embarked on the demolition when the two parties had not exhausted a compensation package. He said he had referred the issue to his solicitor to take the necessary action against the defaulting KMA.

According to him, the action of KMA had affected clauses of procurement and repayment of loans under the agreement. He said the intended action is in line with the dictates of the arbitration clause of the agreement, hence the right of appeal at a law court. The KMA had caused the demolition of the said BOT project to give way to the redevelopment of the Kejetia Central Market by Brazilian contractors.