A-G confirms over GH¢10 trillion saved in judgement debts

The Attorney-General and Minister of Justice, Godfred Yeboah Dame, has confirmed that the office has significantly contributed to the national coffers by avoiding over GH¢10 trillion in judgment debts from 2021 to date.

This confirmation came in response to President Nana Addo Dankwa Akufo-Addo’s assertion during his State of the Nation Address to Parliament on Tuesday, 27th February 2024.

President Akufo-Addo highlighted the substantial savings as a testament to the government’s commitment to fiscal responsibility and diligent legal defence of the state’s interests. The Attorney-General’s Office has been at the forefront of this achievement, engaging in rigorous legal proceedings to defend civil actions against the State and challenging inflated claims.

The successful avoidance of these significant financial liabilities is attributed to the meticulous efforts in uncovering discrepancies and contesting exaggerated debts claimed in litigation within Ghana and in various international arbitration forums.

This proactive legal strategy has not only safeguarded the nation’s financial resources but also underscored the importance of integrity and precision in handling state-related legal matters.

In a statement affirming the President’s statement, Godfred Dame emphasized the office’s role in ensuring that the State is not unduly burdened by unjust financial claims.

“These savings were made through a process of diligently defending civil actions against the State, meticulously uncovering discrepancies, and challenging inflated debts,” he stated.

According to him, these savings come at a crucial time when Ghana, like many other nations, is navigating the complexities of economic recovery and stability and by avoiding such substantial judgment debts, the government has more leeway to allocate resources to critical sectors such as healthcare, education, and infrastructure development, thus fostering sustainable growth and development.

Below are a number of cases in which the AG successfully saved the state from paying or reduced significantly the judgment paid:

a. Suit No. E3/108/05 – China Jilin International Economic and Technical Cooperation Vrs. The Attorney-General
On 2nd June 2014, the plaintiff obtained judgment against the State. In 2015, the State paid US$223,266 and GH¢56,827.15 towards the judgment debt. In 2022, the plaintiff resumed execution of the judgment debt which was stated as US$988, 294, 313.00 (almost 1 billion USD) and GH¢352, 626, 144.41. Over 400 million Ghana cedis in the accounts of the Ministry of Finance was blocked through an order of garnishee nisi (order for payment of money) granted by the High Court, Kumasi on 28th February 2022.
The Supreme Court on 24th January 2023, upheld an application by the Attorney-General questioning the capacity of the plaintiff to institute the action and set aside the order for garnishee nisi.

b. SUIT No. J4/23/2014 – NDK Financial Services Ltd Vrs. Ahamaan Enterprises & The Attorney-General
On 21st December 2011, the High Court granted judgment against the State for payment of sums claimed by the plaintiff together with interest at the rate of 6.5% per month calculated at the close of each day and payable at the end of every month from 7th January 2009 up to date of final payment. By 2020, the judgment debt had increased to GH¢1,273,000,000.00, even after the State had already paid GH¢79,000,000.
Pursuant to an application by the A-G for an order that the judgment debt was unconscionable and that the amount paid by the State should be considered to be full satisfaction of the judgment debt, the Supreme Court in July 2021, held that the amount outstanding to be paid was only GH¢14,000.

c. Suit No. RPC/345/2007 – African Automobile Ltd Vrs.Ministry of Employment & Manpower Development & TheAttorney-General
On 31st July 2009, the High Court granted judgment in favour of the plaintiff and awarded simple interest on the sum claimed. On 24th February 2011, the Court of Appeal awarded interest at the rate of 10% compounded monthly on the sum claimed. On 26th April 2021, the High Court granted an order for garnishee nisi in the sum of GH¢10,331,841,859,411.20 in favour of the plaintiff. A challenge of the order for garnishee nisi by the Attorney General led to the plaintiff drastically revising its claim to GH¢3,615,826,184,388.24 which the High Court confirmed. Dissatisfied, the A-G on 19th June 2023, instituted a fresh action against the judgment creditor to set aside the entire judgment against the State – SUIT No. GJ/0956/23. It is the contention of the A-G that the plaintiff’s legitimate claim was in the sum of GHC28,000 which has been paid.

d. Cassius Mining Ltd Vrs. Government of the Republic of Ghana (International arbitration)
The Claimant on 3rd February 2023, commenced international arbitration against the State for failing to extend the term of its Prospecting Licence Agreement dated 28th December 2016 and claimed compensation over US$275 Million. Following objections to the jurisdiction of the Permanent Court of Arbitration (PCA) raised by the Attorney-General, the PCA refused to constitute a tribunal for the hearing of the matter.
The Claimant subsequently instituted fresh arbitral proceedings by amending its claim to one under the Minerals and Mining Act, 2006 (Act 703) instead of the previous one under its Prospecting Licence Agreement. The A-G applied to the High Court and obtained an injunction on 31st July 2023, restraining the Claimant from pursuing any arbitration outside Ghana under the Prospecting Licence Agreement.
Notwithstanding this, the Claimant proceeded with the new international arbitration proceedings. The A-G raised a plethora of objections to the new arbitration proceedings.
On 27th February 2024, the arbitral tribunal in a determination of the preliminary issues affirmed, among others, that the Claimant was not entitled to invoke the arbitration provisions contained in Act 703 (as contended by Ghana). The tribunal further held that the UNCITRAL Rules do not apply to the proceedings and that, the ADR Act of Ghana is what applies to the proceedings. The tribunal also held that the seat of the arbitration is Ghana, and not London, as claimed by the Claimant.
The determination of the preliminary issues by the tribunal constitutes a major victory for Ghana as it means that the High Court of Ghana has control over the arbitratio

e. Beijing Everyway Traffic & Lighting Vrs. Government of Ghana (arbitration at the Permanent Court of Arbitration, The Hague).

The Claimant dragged the nation to the Permanent Court of Arbitration for over $ 60 million for breach of contract. Following an objection raised by the Attorney-General, the PCA dismissed the claim on 30th January, 2023.

f. Suit No. C1/34/19 Heritage Imperial Ltd Vrs. Ministry of Lands and Natural Resources & The Attorney-General
The plaintiff obtained judgment for US$15,304,714.20 in July 2020 for the seizure and destruction of its mining equipment. In July 2021, the High Court set aside the entire judgment for violating various statutory provisions according to an application by the A-G.

g. Suit No. RPC/344/2007 African Automobile Ltd Vrs. Accra Metropolitan Assembly & The Attorney-General
The claimant obtained a judgment in 2009 and proceeded to obtain a garnishee nisi order for the sum of GHC592,092,705,048.00 in February, 2020. The Attorney General commenced an action at the High Court to set aside the judgment for fraud. Pending the determination, the court has stayed execution of the judgment.

h. David Akpasera & 42 Ors Vrs. The Attorney-General
An action by former members of Parliament and Ministers of State for payment of retirement benefits of over GH¢100 million was dismissed by the High Court in 2020. The Court of Appeal dismissed the appeal in May 2022.
The Attorney-General will continue to zealously defend the interests of the State in civil litigation, protect public property and avoid scandalous judgment debts against the State.

Source:mypublisher24