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$170m GPGC judgement debt increases to $200million

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Ghana will be paying over $200 million dollars to Ghana Power Generation Company (GPGC) after a court in London awarded $170Million against the oil producing West African country, a private legal practitioner Bobby Banson has said.

He explained on the Key Points on TV3 Saturday June 26 that the government is going to pay interest on the 170million and also the legal fees the company paid to its lawyers to handle the case.

This, he said, will shoot up the amount to over 200million dollars.

Sharing his views on the cancellation of the contract which led to the judgment debt, Mr Banson told host Abena Tabi “The only reason they gave is because of excess capacity and now, somebody turns around and says that beyond that, I am giving the advice  that terminate the contract because  they have not met conditions precedent.

“I am worried  particularly because  we just went to the market to borrow  200million to set up a bank.

“This judgement debt is not even $170 million,  if you add the interest , you add the legal fees  it is in excess of  200million  and we will pay.

“We can use that money to set up another bank. So we go for a loan to pay a debt.”

Meanwhile, a former Minister of Power, Dr Kwabena Donkor, has said the emergency power agreement went to cabinet and parliament for approval.

He told Dzifa Bampoh on the First Take on 3FM Wednesday June 23 that the agreement met all the constitutional requirements hence the $170million judgement awarded against the government of Ghana for the termination.

Mr Donkor was reacting to a comment by Attorney General Godfred Dame that the decision by the signatories to sign such an agreement was uninformed.

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Gofred Dame had said in relation to the judgement debt that “The fundamental question that we asked is why the agreement was entered into in the first place? Why did John Jinapor and his former boss execute the signatory of this agreement and afterwards set up a committee to review those agreements?

“It is because you yourself had realised that this was going to result in excess capacity.

“Indeed, the cost was very, very monumental. As per the report of the PPA Committee, if all the agreements signed by John Jinapor and his former boss had been allowed to run, each year, the nation was going to be exposed to payment to the sum of $586 million.

“Cumulatively, between 2013 and 2018 the nation was going to pay as much as $1.76 billion,” he told reporters.

Reacting to his comments, Dr Kwabena Donkor who is lawmaker for Pru East told Dzifa that “The awards was given for wrongful termination, not for wrongful signing. I am therefore surprised that the Attorney General does not deem it fit to confirm that whoever terminated will also be referred to the CID.

“The Ghana Power Generation Company (GPGC) was sent to cabinet, it had cabinet approval. Indeed, the Secretary to Cabinet wrote to Parliament on the 3rd of July 2015, and parliament approved the agreement.

“It went through the constitutional process set out for these agreements.

“This agreement had the lowest tariffs of all the emergency power purchasing agreements. It had the shortest duration, four years and that agreement did not require any financial security from the state of Ghana and therefore it was one of the agreements negotiated.”

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Universities Offering Business Administration In Nigeria

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Have You Been Searching For The List Of Universities Offering Business Administration In Nigeria?, Federal Universities That Offer Business Administration In Nigeria And Their Cut-Off Mark?. State Universities That Offers Business Administration And Their Cut-Off Mark?, Private University Offering Business Administration In Nigeria? What Are The Subject Required For Business Administration?. If Yes, then this […]

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What Kind Of Business Can I Start As A Student?

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Have you been asking; What Kind Of Business Can I Start As A Student? What Business Can A Student Do To Make Money in Nigeria? What Business Can I Start With 50k As A Student? What Can I Sell As A Student To Make Money? What Business Can I Start With 20k As A Student In Nigeria? Is It Possible To Run A Business While Being A Student? Which Business Is Best For Students? Are you a student? Have you been searching for Business Ideas for Students in Nigeria?  How To Start Your Own Business As A Student? Lucrative Business

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Samira also announces refund of all allowances received since 2017 to the State

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Second Lady Samira Bawumia has announced that she will refund all allowances paid her since 2017, when her husband became the Vice President of Ghana.

A statement issued by her office on Tuesday, July 13 also indicated that Mrs Bawumia will not accept any monies allocated her as per recommendations by the Professor Yaa Ntiamoa-Baidu Committee.

“Mrs Bawumia continues to be committed to the service of the nation,” the statement noted.

It added that she stays committed “to deliver humanitarian interventions and initiatives in the areas of health, education and economic development”.

This comes a few hours after First Lady Rebecca Akufo-Addo also gave up all allowances received since 2017.

She stated that the decision comes in the wake of the negative views that have been expressed against the approval of the payment of salaries to First and Second Ladies in Ghana.

“The First Lady has taken note of the ongoing conversation in the nation , following on from recommendations and the bipartisan approval by Parliament , as mandated by the Constitution as the body which approves the emoluments of the Executive,” her office said on Monday, July 12.

“It is important to state  that payment  of such allowances existed and was made to previous First Ladies  in the course of the 4th Republic , prior to Mrs Rebecca Akufo-Addo becoming First Lady , Mrs Akufo-Addo did not  request to be paid any allowance . She only received that which existed and attached to her status , albeit informally.

“That not withstanding , the public discussion has been laced with some extremely negative opinions , in some cases, which she finds distasteful , seeking to portray her as a venal, self-serving and self-centered woman who does not care about the plight of ordinary Ghanaian.

“In view of this the First Lady , in consultation with the President of the Republic has decided to refund all monies paid her as allowances from the date of the President’s assumption of office i.e from January 2017 to date , amounting to GHS899,097.84.”

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