Business News of 2014-04-04

Ghana to pay $12 million to Balkan Energy but not as judgement debt

Minister of Information and Media Relations, Mahama Ayariga has explained that the $12 million awarded Balkan Energy Ghana Limited is for work done by the company and not a judgement debt.

According to him the amount awarded by the Permanent Court of Arbitration in The Hague is the amount paid for the actual work Balkan did in relation to the Osagyefo Power Barge, a 125 MW dual fired power barge and associated facilities in Effasu in the Western Region.

‘’Our rejection of the publication was the impression that Balkan had actually won the case and then government had led this country into a judgement debt; no this one is actual work that the company did, which was accessed and for which naturally we would have paid whether we had gone to arbitration or not,’’ he said.

Government in a statement signed by the Minister for Justice and Attorney General, Marrieta Brew Appiah Oppong on Thursday said “Tribunal also rejected Balkan’s claim for over $40 million US in damages for unjust enrichment. The Tribunal concluded that the evidence did not demonstrate that Balkan had conferred any demonstrable benefit on the government.’’

”Instead, the Tribunal awarded Balkan limited damages of $12 million US for work performed and rejected the bulk of Balkan’s claim of alleged expenditures,’’ the statement added.

Meanwhile a former Attorney General, Nii Ayikoi Otoo said per the statement by the AG’s department the amount Ghana is paying in law can be referred to as Quantum Meruit [reasonable value of service].

”If the Attorney General is telling us that the International arbitration has awarded $12 million for work done on the barge, then I do not think there is anything wrong with it,” he stated.

Source: citifmonline.com
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