The American partners of Ghana International Airlines(GIA) will go ahead to sue government for breach of contract, accusing the Ghana government of lack of commitment to initial overtures to settle the differences out of court. The Ghana Government is holding 70% in GIA.
The Republic of Ghana used security forces, and forcibly removed the senior management of Ghana International Airlines Limited (GIAL) from their offices and purportedly terminated their appointments from the management of GIAL. The Government of Ghana then assumed control of the airline offices, again with the force of arms.
Who wants to deal with these people? Who is next?
GIA-USA LLC invested $2.1 million into GIAL for a minority stake on the condition that the Government of Ghana would not control the airline notwithstanding its shareholding percentage or capital investment.
A Ghanian commercial court trying the case filed against the Attorney General, GIA and the Chief of Staff, Mr. Kwadwo Mpiani, by GIA-USA stayed proceedings to enable parties to the suit go for mediation and arbitration according to the shareholders’ agreement. But after the stipulated six months, the disagreement has not been resolved, thus paving way for GIA-USA to go to Hague.
