Sucasa Properties debunks bankruptcy claims

By Ernest Bako WUBONTO and Solange BANSON

Sucasa Properties, a real estate developer with properties at East Legon Hills -Accra, has vehemently denied allegations of bankruptcy, attributing recent project delays to severe macroeconomic challenges, primarily the volatility of the cedi and default payment of some clients.

The company, which has been accused recently by some clients including Ghanaians and other nationals resident in the United States of America (USA), the United Kingdom (UK) and Canada, among others, for inability to complete projects fully paid for, has finally held a press conference in Accra to address persistent allegations of fraud and financial insolvency.

The leadership of the company, admitting to the inability to complete some projects fully paid for by clients, stressed that depreciation of the cedi, from about GH?6 to the dollar in 2022 when some of the contracts were signed to almost GH?17 at a point, in addition to rising inflation, and the increased cost of construction materials have posed significant challenges for every developer in the country.

It added that these economic pressures have also led to payment defaults from some customers as well, creating a reciprocal delay in project execution, a two-way situation.

Sucasa Properties, Public Relations Officer (PRO), Daniel Kofi Awuku-Asare, refuted accusations, describing them as a campaign of disinformation, misinformation and defamation against his outfit.

He emphasised that Sucasa, which had previously been scrutinised by the Economic and Organised Crime Office (EOCO) and the Criminal Investigations Department (CID) of the Ghana Police Service, as well as facing other legal challenges in court, had fully complied with every inquiry from law enforcement agencies and had been exonerated in all cases.

Also, a previous case of fraud brought against its CEO was dismissed by the High Court, which found no elements of defrauding by pretense.

“Yes, we acknowledge that some project timelines have been delayed. But let us be clear: construction delays cannot be equated with fraud. Many of these delays are themselves due to customer defaults. We understand the economic hardships — the cedi’s depreciation, inflation, and the rising cost of living — and we empathise with our customers.

“Sucasa has been under investigation by EOCO for over a year, following petitions by certain parties. To date, no wrongdoing has been found… In one such matter, the CEO was arraigned in court on charges of fraud. Howbeit, the High Court dismissed the case, ruling that there were absolutely no elements of defrauding by pretense,” he said.

The real estate firm, which was named the official private sector real estate partner for the government’s ‘Diaspora Engagement Policy Framework’ initiative in 2023 and inaugurated by former Minister for Works and Housing, Kojo Oppong Nkrumah, emphasised its commitment to accountability and transparency.

Customer refund

Addressing the issue of customer refunds, Sucasa Properties clarified that it operates on the standard industry model where customer payments are directly invested into construction. Therefore, processing refunds for cancelled contracts is contingent on the resale of the respective property.

The PRO indicated that this accepted industry practice was acknowledged in a recent court ruling related to a class-action case, asserting that an unwillingness to pay under these terms is not synonymous with an inability to pay.

Sucasa Properties underscored that construction relies on timely payments to continue. Despite these challenges, the company affirmed that phase one of its O’Grantson Communities is fully occupied, with phase two at 50 percent occupancy, while phase three is on track for delivery, all at East Legon Hills.

He urged clients who have fully paid to exercise patience as their projects will be completed in due time and delivered as promised.

Public warning

The PRO issued a strong warning against individuals he accused of spreading defamatory claims.

He stated that while the company has previously exercised restraint, it is now prepared to pursue all legal avenues to protect its reputation.

The company concluded by encouraging its customers and the public to ignore false narratives and instead focus on the homes being delivered.

They reiterated their commitment to fulfilling their purpose of providing affordable housing and working with organisations like the Ghana Real Estate Developers Association (GREDA) to address Ghana’s housing deficit.

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