Court orders Ministry to pay US$2 million to company

Accra, Jan. 30, GNA - An Accra Fast Track High Court has ordered the Ministry of Transportation to pay two million dollars or its cedi equivalent to Tabcon Limited, a firm whose services were engaged in the Accra-Kumasi road project.

The court, presided over by Mr Edward K. Asante in a summary judgement further directed the Ministry to pay all other money requested by the firm in its relief. The money includes the recovery of 3,298,210 dollars being remuneration for services and recovery of reimbursable expenses of 1,588,060 dollars. The money which is to be paid at the prevailing banks rate of the Bank of Ghana would commence from August 2003 to the date of payment. Tabcon had taken the Ministry to court following its refusal to pay for services it had rendered on the Accra-Kumasi road project. Tabcon Limited in its application for summary judgement contended that the government of Ghana had declined to pay two million dollars for services it rendered in the construction of the Accra-Kumasi road although legal and relevant documents on the project had been received by the Ministry.

According to the plaintiff the Ministry in its defence was not opposed to the claims and the relief being sought. It was therefore seeking the recovery of an agreed fixed fee of two million dollars as well as recovery of 3,298,210 dollars being remuneration for services.

Tabcon was also seeking the recovery of reimbursable expenses of 1,588,060 and interest on all the money at the prevailing bank rates from August 2003 to the date of payment. The Ministry in its response noted that the two parties signed a contract and MOU, noting that, the company had not interpreted the two properly. It therefore prayed the court that, it should be given the opportunity to respond to matters raised. The court, however, after listening to the submissions of counsel for the Ministry and the company entered judgment against the Ministry.