AG Surcharge: Zoomlion likely to go for a review of High Court verdict

Waste management expert, Zoomlion Ghana Limited, has welcomed a High Court ruling that dismissed the company’s appeal challenging the validity of surcharges imposed on it by the Auditor General (AG).

Much as Zoomlion welcomes the decision, it hinted that the company’s lawyers would interrogate the Court’s reasons and may take up the option of testing the law again.

On Friday, an Accra High Court rejected Zoomlion's appeal against the AG, after it had asked the company to refund a whopping Ghc184 million to the National Health Insurance Authority.

“It is noteworthy that no reasons were immediately assigned by the Court for its ruling save to indicate that the facts will be captured in detailed decision.

“Much as Zoomlion welcomes the decision, it should be noted that the company is clothed with the right to seek a review of the High Court decision and will proceed to take steps it deems fit based on the counsel of its Lawyers upon studying the ruling,” Zoomlion said in a statement released in Accra.

On October 27, 2018, the Auditor-General issued a surcharge and disallowance against Zoomlion for over Ghc184 million for a fumigation exercise it carried out for the Ministry of Health (MOH) but which was paid by the National Health Insurance Authority (NHIA).

That was after an audit conducted by the Auditor-General on the accounts of the NHIA made findings that Zoomlion had between the year 2007 and 2018 allegedly been paid a total amount of GHC184,901,650.00 devoid of due process.

But, the lawyer for Zoomlion, Osafo Buabeng rejected the claims by the Auditor General insisting that the company had binding contract with the NHIA.

Mr Buabeng further argued that he Auditor-General did not give Zoomlion the opportunity to respond to the allegations levelled against the company.

Below is Zoomlion’s full statement on the High Court verdict

Zoomlion Ghana Limited, has noted with interest, the decision of the High Court in Accra-dismissing an appeal, initiated at the instance of the waste management firm challenging the validity of surcharges imposed on it by the Auditor General.

The surcharges were applied following an audit of a contract executed by Zoomlion for the Ministry of Health. Although Zoomlion has always maintained that the Auditor General’s position was ill-suited when measured against the actual circumstances of the contract, the High Court thought otherwise and decided against Zoomlion.

It is noteworthy that no reasons were immediately assigned by the Court for its ruling save to indicate that the facts will be captured in detailed decision.

Much as Zoomlion welcomes the decision, it should be noted that the company is clothed with the right to seek a review of the High Court decision and will proceed to take steps it deems fit based on the counsel of its Lawyers upon studying the ruling.

Zoomlion assures the public especially its stakeholders that the Company’s commitment to excellence in service delivery, transparency in its operations and regards for regulatory authorities and the law remains firm.