Gov’t faces suit over CDB loan

Executive Director of the African Center for Energy Policy (ACEP) Mohammed Amin Adam says he would be the first to sue government for “willfully causing financial loss to the state” if China is not made to compensate Ghana over failure to deliver the second tranche of the $3 billion Chinese Development Bank (CDB) loan agreement.

The Minister of Finance, Seth Emmanuel Terkper, announced on Wednesday, July 16 during a presentation of the mid-year budget review that government has reduced the loan agreement to $1.5 billion after failure of the Chinese to deliver on all terms of the deal.

Mr Adam remarked that: “Now that the second tranche is not coming…we have lost value of our money that we put in an account in anticipation of the disbursement of the money."

He said government needs to discuss a compensation deal in renegotiating the deal.

“The compensation should reflect in reducing some of the terms on the first tranche,” he stated.

“If we don’t do that I will be the first to sue the government for causing financial loss to the state,” Mr Amin told TV3 on Monday, July 21.