General

Fresh Judgment Debt of $120million hits govt again

The government of Ghana faces another fresh judgement debt of approximately $120million after GCNET served notice after its contract was shabbily terminated by a team led by Osafo Maafo then Senior Minister, MyNewsGh.com has learnt.

This latest one comes up at a time the International Court of Arbitration awarded a cost of $134 million and an interest of $30 million against the Government of Ghana over the cancellation of an Emergency Power Agreement with GCGP limited under the former Energy Minister Boakye Agyarko as part of several other energy contracts cancelled by the NPP on the basis that the country did not need those power agreements.

The ruling by the International Court of Arbitration ordered the government to Ghana to pay to “GPGC the full value of the Early Termination Payment, together with Mobilization, Demobilization and preservation and maintenance costs in the amount of US$ 134,348,661, together also with interest thereon from 12 November 2018 until the date of payment, accruing daily and compounded monthly, at the rate of LIBOR for six-month US dollar deposits plus six percent (6%).”

On the latest GCnet West Blue saga, the government has to cough out US$120 million, as compensation to two companies hitherto managing a port platform. The two companies, the Ghana Community Network Limited (GCNet) and West Blue which were in charge of the Ghana National Single Window (GNSW) platform.

The two companies, were effectively managing the GNSW when their contract was snatched from them before the expiry period and the job given to Ghana Link/UNIPASS-ICUMS in a politically orchestrated arrangement through the office of the Senior Minister, Yaw Osafo-Marfo.

The government agreed to pay off GCNet for the unexpired period of the contract and the settlement was valued at an amount in the range of $120 million.

The government since refused to honour its part of the contract.

Source: MyNewsGh.com

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