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The International Chamber of Commerce (ICC) has dismissed an arbitration case brought by Micheletti Company Limited against the government of Ghana, graphic.com.gh reports.
The case, initiated in May 2023, alleged damages for breach of contract related to the rehabilitation of the Accra Sports Stadium.
The ICC Tribunal, chaired by President Sadaff Habib, including members Shadrack Arhin and Justin Amenuvor, upheld the Attorney-General of Ghana’s argument that the arbitration was statute-barred.
The tribunal determined that the claim was initiated beyond the timeframe allowed by Ghana’s Limitation Act.
In April 2006, the government of Ghana signed an agreement with Waterville Holdings (BVI) Limited for the rehabilitation of multiple sports stadiums in preparation for the 2008 African Nations Cup.
This agreement included the Accra Sports Stadium, El-Wak Stadium in Accra, and Baba Yara Sports Stadium in Kumasi.
Micheletti was the local sub-contractor for the Accra Sports Stadium, while Consar Limited was responsible for the Baba Yara Sports Stadium.
On August 1, 2006, the government terminated the agreement due to the lack of cabinet approval.
Following this, negotiations allowed Micheletti and Consar to continue their work. The value of the work completed was certified, and the government paid for all certified work, the report added.
In 2023, Micheletti initiated arbitration, claiming unpaid amounts from the government. They sought $400,000 in special damages, interest on this sum from February 2009 at the Bank of Ghana’s forex rate plus three percent, administrative fees, and arbitral costs.
The Office of the Attorney-General denied any liability and filed a preliminary objection based on the ICC Rules of Arbitration.
The report added that Assistant State Attorney Anne-Marie Ayanru argued that Micheletti had not followed the dispute resolution procedures outlined in the FIDIC General Conditions of Contract, which required disputes to be initially submitted to a Dispute Adjudication Board (DAB).
Additionally, the government contended that the claim was filed more than 14 years after the cause of action arose, rendering it statute-barred under Ghanaian law.
The Tribunal first addressed the preliminary objection, concluding that it had jurisdiction to hear the matter since Micheletti had notified the government of its intention to refer the dispute to a DAB, but the government ignored this notification.
However, the Tribunal agreed with the government that the claim was statute-barred under Ghanaian law, as it was filed beyond the six-year limit set by Ghana’s Limitation Act, 1972 – NRCD 54.
Consequently, the Tribunal dismissed Micheletti’s claims entirely.
The report added that the Tribunal is now reviewing submissions on the costs to be awarded to the government and will soon determine the amount to be awarded.
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