A legal action by the Attorney-General (A-G) has saved the state from paying more than GH¢1.2billion in judgment debt which was being claimed by NDK Financial Services.
The company went to court compel the government to pay GH¢1.273 billion it claimed was outstanding balance and interests on a judgment debt.
Instead, the financial services company was awarded GH¢14,699.74 with interest, by the Supreme Court after the A-G had challenged the validity of its claims.
The said judgment debt was in relation to a credit facility provided by NDK between 2005 and 2008 for Ahaman Enterprises Limited for the latter to hand some electrical poles and other electric materials on behalf of the Ministry of Energy.
Ruling
Following disagreement over the quantum of the judgment debt last year, the Supreme Court appointed the accounting firm, PricewaterhouseCoopers (PwC), to audit the books and ascertain the veracity of the GH¢1.23 billion being claimed by NDK Financial Services.
That followed an application by the A-G, Mr Godfred Yeboah Dame, to the effect that the state did not owe NDK any amount on the basis that it had fully fulfilled all financial obligations to the company.
It was after PwC’s audit that the apex court reached its decision Tuesday [June 2, 2021].
In a unanimous decision, a five-member panel of the court, presided over by the Chief Justice, Justice Kwesi Anin Yeboah, threw out the application for GH¢1.23 billion by NDK.
“The decision of the court is unanimous; the plaintiff herein (NDK) is adjudged to recover from the defendant (A-G) an amount of GH¢14,699.74 as the outstanding balance by the defendant to the plaintiff,” the Chief Justice said.
“The said amount adjudged to be paid by the defendant is to attract the statutory rate of interest under Rule 4(1) of Court (Award of Interest and Post-Judgment Interest Rules, 2005; that is, C.I. 52), from 28th November, 2014 to the date of final payment, with the rate being the rate as of 2nd June, 20121,” the Chief Justice ruled.
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