GH¢289m arrears - Gabby's firm sues government, GRA over West Blue's claims

West Blue Ghana has sued the Attorney-General (AG) and Ghana Revenue Authority (GRA) for non-payment of over GH¢289million in arrears for work done under the National Single Window and Integrated Risk Management System contract executed in August 2015.

In a suit filed at an Accra High Court on Tuesday, November 14, West Blue (plaintiff) is requesting the court to order the Attorney-General (1st defendant) and Ghana Revenue Authority (2nd defendant) to make full payment of the outstanding fees due for services rendered.

Africa Legal Associates, a company co-founded by Gabby Asare Otchere-Darko, is the current legal representative of West Blue.

According to West Blue, it decided on going to court because all attempts to recover the outstanding debts – including various correspondence through its lawyers Bentsi-Enchill, Letsa and Ankomah (BELA) and Africa Legal Associates (ALA) to the Ministry of Finance and the 2nd Defendant (GRA) – have been unsuccessful as the defendants, without any lawful basis, have remained adamant in their position that all payment obligations owed the plaintiff (West Blue) have been discharged.

The outstanding fees were occasioned as a result of government’s (finance ministry and GRA) failure to pay West Blue the full contract price (from 2015 to 2020) fee – which is a fixed percentage of the final invoice Cost, Insurance and Freight (CIF) value of import consignments entering into Ghana through the seaports, airports and land borders.

Under West Blue’s contract with government, acting through the Ministry of Finance (MoF) and the GRA, for providing the National Single Window and Integrated Risk Management System (NSW Contract), the IT company was to be paid a contract price that is a fee equivalent to 0.35 percent (zero point three five per centum) of the final invoice CIF value of import consignments entering into Ghana through the seaports, airports and land borders.

The former deputy finance minister, Kwaku Kwarteng, in letters dated Jan 25, 2018; February 4, 2019; and March 14, 2019 alluded to West Blue’s contract price of 0.35 percent and subsequently reduced this to 0.28 percent of the final invoice CIF value of all imports.

In letters signed on behalf of the minister dated June 11 and July 17, 2020 respectively by Mangowa Ghanney, Director-Legal at the Ministry of Finance – who in 2015 drafted and oversaw execution of the government contract with West Blue – confirmed that West Blue’s payment was a fixed percentage of the final invoice CIF of all imports.

However, government since 2015 till the contract ended in 2020, failed to pay West Blue the full amount of the fixed percentage of final invoice CIF value for import consignments entering Ghana through the seaports, airports and land borders.

Breakdown of arrears owed West Blue

West Blue in the suit filed at the High Court is claiming against the A-G and GRA jointly and severally as follows:

“Recovery of the sum of one hundred and forty-nine million, three hundred and fifty-seven thousand, six hundred and ninety-two Ghana cedis, seventy-one pesewas (GH¢149,357,692.71), being the outstanding fees payable to the plaintiff (West Blue) for services rendered to the Ministry of Finance and 2nd defendant (GRA) under the contract dated 4th August 2015 for provision of the National Single Window and Integrated Risk Management System (NSW Contract) from September 2015 to September 2017, at an applicable rate of 0.35 percent of the final invoice CIF value of import consignments entering into Ghana through the seaports, airports and land borders.

“Recovery of the sum of seventy-six million, ninety-seven thousand, nine hundred and seventeen Ghana cedis, fifty-eight pesewas (GH¢76,097,917.58), being the outstanding fees payable to the plaintiff for services rendered to the Ministry of Finance and 2nd defendant under the NSW Contract from October 2017 to 31st December 2018, at an applicable rate of 0.28 percent of the final invoice CIF value of import consignments entering into Ghana through the seaports, airports and land borders.

“Recovery of the sum of sixty-four million, ninety-two thousand, two hundred and fifteen Ghana cedis, seven pesewas (GH¢64,092,215.07), being the outstanding fees payable to the Plaintiff for services rendered to the Ministry of Finance and the 2nd defendant from 1st January 2019 to May 2020 at an applicable rate of 0.28 percent of the final invoice CIF value of import consignments entering into Ghana through the seaports, airports and land borders,” portions of the writ read.

Recovery of equipment

West Blue is also claiming recovery of the equipment it procured to perform its obligations under the NSW Contract and the additional services it rendered from 1st January 2019 to May 2020 at the request of the Ministry of Finance and 2nd defendant, which the defendants have retained.

“Or in alternative recovery of an amount of Four Hundred and Twenty-Five Thousand United States dollars (US$425,000), being the value of equipment it procured to perform its obligations under the NSW Contract and the additional services it rendered from 1st January 2019 to May 2020, which the defendants have retained.”