Payment of compensation draining government coffers-AG

Accra, April 25, GNA- Mr Ayikoi Otoo, Minister of Justice and Attorney General on Tuesday expressed concern over the payment of huge compensation and damages to ex-workers of public companies divested, saying, the practice was causing headache for his ministry. Speaking at the "Meet the Press" series in Accra, Mr Otoo said many workers alleged that they were not paid any severance awards and End-of-Service -Benefits when such companies were divested.

"Many workers of especially Ghana Industrial Holding Company such as GIHOC Pharmaceuticals, GIHOC Steel Works, State Fishing Corporation, GNTC, Statistic Service, Ghana Police Service etc have been applying to the court and have been obtaining huge awards in compensation."

He said though Government has been paying huge damages to the affected workers, his Ministry has however, managed to save money for the state.

He recalled situations where the government institutions had failed in communicating to the Attorney General's office over suits involving them declaring that, "this results in judgement in default of defence being obtained against the institution concerned." Mr Ayikoi said if his department was not informed it would not be able to file appropriate defence to claims in various suits. The Attorney General therefore, called for cooperation between his department and other state institutions saying, "You need to

draw the attention of the Ministry of Justice for prompt action". "It is also necessary that when writs are served on institutions they forward them quickly to the office of the Attorney General."

Mr Ayokoi Otoo observed that though government in the past had acquired many lands no compensations had been offered. In addition, Mr Otoo said there were many suits against the state arising from careless driving, hence implored drivers of government vehicles to drive with care and attention.

On breach of contract, the Attorney General urged state institutions to seek the opinion of his outfit when entering into any contract. "Some of the contracts are not properly crafted and then the interpretation of the clause lead to litigation. Some agencies also fail to keep record their side of the bargain," he noted.