Africa Automobile’s judgment debt against Ghana balloons to GHS1.5 trillion

A judgment debt secured against the Government of Ghana by Africa Automobile Limited in 2009 has ballooned to a whopping GHS1.5 trillion.

The said judgment arose out of a contract for the provision of automobile services rendered by the Africa Automobile Limited to the Ministry of Employment in which the High Court awarded judgment in favour of the company as far back as 2009.

On appeal, the Court of Appeal confirmed the judgment of the High Court and awarded an amount of GHS16,565,396.22 in favour of Africa Automobile Limited.

Since then, the figure due and payable to Africa Automobile Limited has shot up astronomically due to non-payment of the said sum by government.



Analysts say until the amount is paid, the said figure will continue to grow at an exponential rate given that the interest rate is compounding.

There are reports that because government failed to secure a voluntary payment of the amount all these years, the company is threatening to go into full execution against the state.

There are reports that recent approaches by the Ministry of Finance to compromise the judgment and secure a reasonable payment have however slowed that move and may appear to be the reason the enforcement of the judgment has not happened yet.

Analysts are of the view that, at the current rate of growth in the amount owed under the judgment, any failure to pay or settle on a compromised amount to be paid will imply that the amount would exceed GHS2 trillion by the end of 2020 and beyond.

Reports also indicate that, the Ministry of Finance has recently, been making frantic efforts to engage and secure a substantial reduction in any amount payable in order to save the public purse given that the current amount is unsustainable.

There are claims that all appellate options opened to the Government of Ghana have been closed.




Source link

Share this:

Leave a Reply

Your email address will not be published. Required fields are marked *


AfCFTA implementation to boost intra-African trade – Secretary-General

Business News of Monday, 19 October 2020 Source: Ghanaian Times 2020-10-19 Wamkele Mene, Secretary General of the African Continental Free Trade Area The implementation of the African Continental Free Trade Area (AfCFTA) will significantly boost intra-African trade within the next 10 years. The Secretary-General of the AfCFTA, Wamkele Mene, who disclosed this in an interaction […]

Anglogold Ashanti launches ‘Obuasi Goes Agro’ programme

Mining giant AngloGold Ashanti (AGA) Ghana has launched its Agro business programme dubbed ‘Obuasi Goes Agro (OGA)’ in Adaase, a farming community in Obuasi. The OGA programme is in sync with the Government’s Planting for Food and Jobs (PFJ) program which aims to promote food security and the immediate availability of selected food crops on […]

NDC parliamentary candidate invited over alleged plot against Cynthia Morrison

The Central Regional Police Command has invited the National Democratic Congress (NDC) parliamentary candidate for Agona West, Paul Ofori Amoah in connection with an alleged plot to kill the incumbent Member of Parliament for Agona West, Cynthia Morrison. Mrs. Morrison had made a formal complaint to the police about four men who were arrested at […]

NLC secures injunction against strike by universities’ senior staff

The National Labour Commission (NLC) has secured an injunction to stop the strike by the Senior Staff Association of Universities of Ghana. The restraining order sighted by Citi News said the Senior Staff Association are “restrained from embarking on its intended strike” for the next 10 days. The court also directed the association to appear […]