Divestiture of AR Briscoe incurred no debt

The state owes no debt following the divesture of AR Briscoe to Sabat Motors, Mr Nelson Kofie Sena, Managing Director of Sabat Motors, has said.

He said the company has received notification from the family of the late Albert Addy, owner of the property on which Sabat Motors is now occupying, of the intention to dispose of the property.

Mr Sena who was testifying before the Judgement Debt Commission on Wednesday in Accra in the matter of Victoria Addy and others versus the Attorney General and Sabat Motors, said Sabat Motors is willing to buy the property at the end of the lease period.

He said despite threats from the property owners to dispose it off, Sabat Motors is not worried because the 75-year lease period, which ends in 2023, is not due.

Mr Justice Apau, Sole Commissioner of the Judgement Debt Commission said Sabat Motors as occupant of the facility has the first right to renew the lease or buy the property, adding that it would not be right to lease or sell it to any one before the end of the current lease period.

Nana Soglo Alloh IV of Alloh and Partners Chambers and Counsel for Victoria Addy and others said in January this year, based on the court’s default judgement in January 2007, he wrote on behalf of his clients to the Managing Director of Sabat Motors, to tell him of his clients’ intention to repossess and dispose-off the property.

Nana Soglo who is also the Paramount Chief of Likpe Traditional Area and the free hold owners met with the Managing Director in July this year, who promised to buy the property within 60 days, which has since expired, without making good the promise.

Mr Justice Apau brought to the notice of the Counsel (Nana Alloh) that the default judgement had since been set aside in July 2007, but Nana Alloh said he was not in the known.

Mr Assakkua Agambila, Executive Secretary of the Divestiture Implementation Committee (DIC), who testified earlier, said the late Albert Addy leased the property to AR Briscoe on June 15, 1948.

He observed that the government in 1979, formed an amalgamated company, known as Automated Technical Services from four existing ones, of which RT Briscoe was one, stating that in 1997, government placed the RT Briscoe segment on the divestiture, which was subsequently purchased by Sabat Motors.

He said in 1998, the then Serious Fraud Office conducted an investigation into the divestiture, which showed that Sabat Motors took a loan from Ghana Commercial Bank to buy the property from government.

Mr Agambila said following this revelation, in 2004, government sued Sabat Motors for fraud, but the courts ruled in favour of Sabat Motors at both the High Court and the Court of Appeal.

He said on November 12, 2002, Victoria Addy and others took the DIC and Sabat Motors to court, the DIC managed to disentangle itself from the case, whereas, the AG's Department was rather brought in.

The Executive Secretary said Sabat Motors acquisition of the property took encumbrances of all rent arrears from 1979 to 1997.

Sitting has been adjourned to Thursday, October 30.