The International Court of Arbitration (ICC) has dismissed a case brought by Micheletti Company Limited against the Government of Ghana.
The case, initiated in May 2023, sought damages for alleged breach of contract related to the rehabilitation of the Accra Sports Stadium.
The ICC Tribunal, consisting of Sadaff Habib, the president, along with members Shadrack Arhin and Justin Amenuvor, delivered a partial award on jurisdiction.
The Tribunal upheld the Attorney-General of Ghana’s argument that the proceedings were statute-barred, as Micheletti’s claim was filed beyond the time limits established by Ghana’s Limitations Act.
Background
In April 2006, the Government of Ghana entered into an agreement with Waterville Holdings (BVI) Limited to rehabilitate several sports stadia in preparation for the 2008 African Nations Cup.
The project included the Accra Sports Stadium, El-Wak Stadium in Accra, and Baba Yara Sports Stadium in Kumasi. Micheletti was appointed as the local sub-contractor for the Accra Sports Stadium, while Consar Limited was tasked with the Baba Yara Sports Stadium.
On August 1, 2006, the Ghanaian government terminated the agreement with Waterville Holdings due to a lack of Cabinet approval. The government then negotiated directly with Micheletti and Consar to continue the rehabilitation projects.
The government certified and paid for the work completed by Micheletti. However, in 2023, Micheletti initiated arbitration proceedings, claiming that the government had not honoured all of its obligations.
The claims included special damages amounting to $400,000, interest on this sum from February 2009 at the current Bank of Ghana forex rate plus three percentage points, administrative fees, and arbitral costs.
The Attorney-General’s Office denied any liability and raised a preliminary legal objection based on article 5(1) of the ICC Rules of Arbitration, which formed part of the decision the Tribunal relied on to dismiss the case.
The ICC was to determine it had the jurisdiction to hear the claimant’s claim in the arbitration as well whether Micheletti’s claim is statutorily time barred and therefore inadmissible.
In delivering the judgement, the ICC indicated that it had jurisdiction to hear the matter. On whether the claim was time barred, the court ruled that the suit was statute-barred under Ghanaian law, since it was instituted way beyond 2015, making it tentatively more than six years allowed by Ghana’s Limitation Act, 1972 – NRCD 54.
This thus made the claim by the company inadmissible. This decision marks a significant development in the long-standing dispute between Micheletti Company Limited and the Government of Ghana.
Here is the full judgement.
By Laud Adu-Asare
