Tuesday, November 30, 2021

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

Must read

I’m not Finance Minister’s son; I’m a private businessman – Tom Tom reacts to mischievous video

A Kumasi-based private businessman popularly known as TOM TOM has responded to some mischievous videos being circulated on social media by some NDC supporters...

Stakeholders collaborate to address deforestation and boost cocoa production

A stakeholders’ workshop to discuss measures to address deforestation and boost cocoa production in the Ahafo Region has been held at Goaso. It was also...

AfCFTA Secretariat rolls out ‘vision’ initiative backed by ‘super-app’

With barely two weeks left to the Extraordinary Summit of African Union Heads of State on 5th December, 2020, ahead of the expected start...

Ghana’s Port now a preferred choice of shipping lines due to operational efficiencies – Michael Luguje

The Director-General of the Ghana Ports and Harbours Authority, Michael Luguje has revealed that developments in Ghana’s ports have positioned the country at a...
EllSamwise King
Civil Engineer & IT Expert, Blogger, Entrepreneur, and Philanthropist. CEO of Skyline Consortium & Heylux Inc. An alumnus of Prempeh College where he read General Science. Holds a first class degree in BSc. Civil Engineering from the Kwame Nkrumah University of Science and Technology & BSc. Information Technology from NIIT-Ghana. Mentors/role models; Alvar Alto, Rupert Murdoch, Piers Mogan, Mensa Otabil, Bernard ElBernard Nelson-Eshun. Blogs for; www.233times.com | www.paemuka.com | www.ghbreakingnews.com | www.muzikiq.com | www.brandsaid.biz Social Media Mogul and Digital Marketer. SM Manager for Dr. Mensa Otabil | ICGC Worldwide, co-founder | Eon3 Group | Brands Aid | Calvary Temple - ICGC | Team Sarkodie, founder | Global Edge Pictures | Muzik IQ, founder

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.

 

- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

I’m not Finance Minister’s son; I’m a private businessman – Tom Tom reacts to mischievous video

A Kumasi-based private businessman popularly known as TOM TOM has responded to some mischievous videos being circulated on social media by some NDC supporters...

Stakeholders collaborate to address deforestation and boost cocoa production

A stakeholders’ workshop to discuss measures to address deforestation and boost cocoa production in the Ahafo Region has been held at Goaso. It was also...

AfCFTA Secretariat rolls out ‘vision’ initiative backed by ‘super-app’

With barely two weeks left to the Extraordinary Summit of African Union Heads of State on 5th December, 2020, ahead of the expected start...

Ghana’s Port now a preferred choice of shipping lines due to operational efficiencies – Michael Luguje

The Director-General of the Ghana Ports and Harbours Authority, Michael Luguje has revealed that developments in Ghana’s ports have positioned the country at a...

Staff of Holiday Inn hotel demand payment of 8 months salary arrears

Some aggrieved staff of the Holiday Inn Hotel, Accra, have requested for payment of their salaries. The group, as part of efforts to demand their...