Government has since 2017 spent more than GHC300 million paying judgment debts with the nation still owing one company more than a billion cedis.
Payment of this outstanding amount will mean the last 7 years has seen the nation spend the highest amount ever in its history on judgment debt payments.
This revelation comes in the wake of President Akufo-Addo telling Parliament that the Attorney-General had saved the nation over GHC10 trillion through effective litigation.
“The Attorney-General has continued, in a very effective manner, the tradition under this administration of contesting every civil litigation against the state, and has avoided the numerous judgement debts that used to be given against the state. The Office, as a result, has saved the country over ten trillion Ghana cedis (GH¢10 trillion)”, President Akufo-Addo told parliament.
Documents obtained by 3news.com shows that GHC300,385,317.52 has been paid since 2017.
Yearly breakdown of payments
For the year 2017, Government spent 111 million cedis with the biggest recipient being Vacuum Salt Products Limited (VSPL). This related to a dispute over cancellation of a lease granted VSPL to mine salt in the Ada Songhor area. The company received a total of GHC57.2 million from government.
For the year 2018, the state paid GHC153 million. Balkan Energy received GHC67 million in the case involving its fixing of the Osagyefo Power Barge in 2007. NDK Financial services Limited received GHC50 million in the same year under review.
The figure for 2019 dropped significantly to GHC13.9 million with a slight increase to GHC18.9 million in 2020. 2021 saw a major drop to GHC357,811. The year 2022 saw a rise to GHC2.8 million.
It is suspected that government may have paid GHC230 million in 2023 to Energy Company GPGC. It follows a letter cited by 3news.com that shows that the Finance Ministry gave Financial Clearance for the payment of the amount as part payment for a debt of $140 million owed the company following government’s termination of a power purchase agreement.
It’s unclear if this sum has been transferred. In the event it has been paid, it will mean that government has paid GHC530 million since 2017. A full settlement of the GPGC debt will place payments in the last 7 years in excess of GHC1 billion.
The nation has also spent GHC4.9 million on legal fees and refunds relating to these debts. Beneficiaries include Dorsey and Whitney LLP, Kuenyehia and Nutsukpui, Judicial Service.
By Joseph Ackah-Blay
