Trade Ministry blames Prof. Mills gov’t for GHc197 Bankswitch judgment debt, Says its saving Ghana from evil politicians

The Ministry of Trade and Industry (MOTI) has stated the GHc197 judgment debt owed Bankswitch was incurred by the Prof. John Evans Atta Mills’ administration.

The Ministry further says it is “ rather trying to help save the people of Ghana from an evil plot by some businessmen and politicians to rape the country’s Treasury, then right-thinking men and women should sit up.”

The Ministry said this in a press statement in reaction to news that it wrote to Destination Inspection Companies to help pay judgment debt in exchange for contracts.

Last week Joy News intercepted documents from the Trades and Industry Ministry that revealed government had asked Destination Inspection Companies (DICs) to contribute towards repaying a Bankswitch judgment debt in exchange for contracts.

A letter signed by the Trade Minister, Dr. Ekwow Spio-Garbrah, asked the DICs with the capacity to contribute $35 million each towards repaying the judgement debt to assist government.

Bankswitch Ghana dragged the government to the Permanent Court of Arbitration in The Hague after their contract was terminated by government. The IT solution and services provider was awarded damages in excess of GHc197million by the court.

In the letter dated June 3, 2015, Dr. Spio-Garbrah asked the DICs to contribute to pay up the judgment debt in exchange for contracts.

The letter stated:

“To pay this debt, government of Ghana is informing all destination inspection companies that any of them who can advance government of Ghana an amount of 35 million dollars would be awarded a contract of 0.35 percent of free on board values on all Ghana’s imports for at least a period of five years to enable that company recover its investments”.

The letter further stated that, for the 0.35 percent FOB payment, any of the companies which makes the US$35 million contribution will do relevant trade facilitation within the context of the National Single Window and work with West Blue on aspects of that exercise.
However, West Blue will be paid separately.
All DICs were given until midday of June 8, 2015 to respond with an expression of interest.
They were also required to indicate how soon they will make the 35 million dollars available.

The letter in its first paragraph indicates that the contract of destination inspection companies comes to an end on August 31, 2015.
It says government has decided to implement a national Single Window from September 1, 2015. It discloses that West Blue Consulting has been identified to implement the single window programme.

The Ministry’s move has been criticized by many who consider it as a potential means to perpetuate acts of corruption.

A private legal practioner and Member of Parliament for Abuakwa South, Atta Akyea told Joy FM “it is very filthy for you to use your office to induce people to pay monies which they are not supposed to pay so they have some advantage because of your promise.

“What is even worse is you wouldn’t want to respect the procurement act and that there will be no competitive bidding and you will give it to them because they did your bidding”, he added.

Some have described the circumstances under which the government incurred the judgment debt was unnecessary and said the debt could have been avoided. In a press statement, however, the Ministry said “The judgment debt was for the termination by the Prof Mill administration of a contract awarded under the Kufuor Administration for services in the trade facilitation arena.”

It further states that the deal with the destination inspection companies was intended to save the nation about One Billion Ghana Cedis:

“Until recently, Bankswitch sought to have the Government pay the entire judgment debt over a 5-year period, and in addition for Government to award Bankswitch 0.35% of the FOB values of all Ghana’s imports over five years. This supplementary award of 0.35% of FOB imports over 5 years, were it to be accepted by the Government of Ghana, would imply a contract to Bankswitch that would be worth more than GHC One billion cedis over five years. This additional over payment to Bankswitch of more GH₵ One billion Ghana cedis would be over and above the full settlement by the Government of Ghana of the GHC 197 million debt, whether paid in one lump sum or over a number of years. It is this 0.35% of Ghana’s import trade bill that Bankswitch would wish to be awarded that the Ministry of Trade has invited Destination Inspection Companies interested in paying off the Bankswich debt to present expressions of interest so as to prevent the people of Ghana from being bilked an extra GHC One billion for no work done.

It is not clear how the nation would be saved because the ministry has not stated that part of the judgment mandated it to award the additional contract Bankswitch was demanding. Since the letter to the destination inspection companies stated that the DICs would recoup their investment from the deal, it is difficult to say how the state would not lose the money that the DIC’s would recoup.

The attention of the Ministry of Trade and Industry (MOTI) has been drawn to articles and commentaries in the media especially Daily Guide of Saturday June 20th, 2015 regarding a correspondence the Ministry has exchanged with Destination Inspection Companies (DICs) on the payment of a judgment debt owed Bankswitch. The imports of such reports and subsequent commentaries have given the impression that the Ministry is involved in transactions that may be improper or which may constitute bribery.

The facts are that a company called Bankswitch has succeeded in receiving a Judgment debt against the Government and people of Ghana in the amount of approximately GHC 197 million. The judgment debt was for the termination by the Prof Mill administration of a contract awarded under the Kufuor Administration for services in the trade facilitation arena. The Prof Mills administration was of the conviction that the contract was improperly awarded and that Bankswitch had not performed the services for which it was contracted to perform. Bankswitch sued the Government in international courts and won a judgment debt amounting to approximately GHC 197 million. Due to delays in paying this judgment debt and the accumulating interest, this debt is rising.

As the Government has been unable to pay this judgment debt this far, Bankswitch has been negotiating with Government on alternative payment arrangements. Until recently, Bankswitch sought to have the Government pay the entire judgment debt over a 5-year period, and in addition for Government to award Bankswitch 0.35% of the FOB values of all Ghana’s imports over five years. This supplementary award of 0.35% of FOB imports over 5 years, were it to be accepted by the Government of Ghana, would imply a contract to Bankswitch that would be worth more than GHC One billion cedis over five years. This additional over payment to Bankswitch of more GH₵ One billion Ghana cedis would be over and above the full settlement by the Government of Ghana of the GHC 197 million debt, whether paid in one lump sum or over a number of years. It is this 0.35% of Ghana’s import trade bill that Bankswitch would wish to be awarded that the Ministry of Trade has invited Destination Inspection Companies interested in paying off the Bankswich debt to present expressions of interest so as to prevent the people of Ghana from being bilked an extra GHC One billion for no work done.

MOTI’s open and transparent invitation on official Government of Ghana letterhead to five destination inspection companies to express interest in pre-paying the GHC 197 million was motivated by the national interest in saving the country more than GHC One billion in overpayments that Bankswitch is seeking from the people of Ghana. Members of the NPP government who negotiated and signed the Bankswitch contract, some current NPP MPs, their associates in civil society and friends in the media, who wish Ghana harm can distort MOTI’s action and pretend it is some kind of bribe or scandal.

However, when it is understood that MOTI is rather trying to help save the people of Ghana from an evil plot by some businessmen and politicians to rape the country’s Treasury, then right-thinking men and women should sit up. If MOTI were interested in any scurrilous and scandalous business, it would not do so on Government letterhead and address the same opportunity to five independent and separate businesses to respond in writing.

The Minister of Trade and Industry is consulting his lawyers and is prepared to take swift legal action against any media house or commentators who wish to toy with and damage the hard-earned global reputation for hard work, creative problem-solving, professionalism, competence and integrity of Dr Ekwow Spio-Garbrah.

The Ministry is of the view that, the issue at stake should be discussed, taken into consideration the payment of judgement debt through no work done. The question is, should we pay judgement debt in excess of GH₵ 1 Billion through no work done by Bandswitch?
SIGNED
NANA AKRASI-SARPONG
AG. DIRECTOR
COMMUNICATION AND PUBLIC AFFAIRS
0244743433

Credit: This story was written with additional information from myjoyonline.com