Home / Latest News / Nduom’s company drags Finance Ministry to court over GH¢20.7million debt

Nduom’s company drags Finance Ministry to court over GH¢20.7million debt

Ghana Growth Fund Company Limited, a subsidiary of Group Nduom, has dragged the Ministry of Finance and five others to court over a GH¢20.7 million debt.

The company is demanding interest on the amount at the prevailing bank rate until the final date of payment.

Also attached to the suit as defendants are the Attorney General, the Minister of Roads and Highways, Amoh Prempeh Company Limited, Agyapot Company Limited and Reggio Company Limited.

Three separate writs of summons were filed on behalf of Ghana Growth Fund Company Limited at the High Court in Accra.

Justice Srem-Sai is the lawyer for the plaintiff.

According to the plaintiff, it advanced loans in various sums to Amoh Prempeh Company Limited, Agyapot Company Limited and Reggio Company Limited to enable them to successfully execute road construction contracts from the government sometime in 2011.

It said the three companies used the loan for road projects, but the government failed or delayed in paying them.

Following from that the companies opened an escrow account with the Ghana Growth Fund Company Limited being a joint signatory.

The Ministry of Finance was per the agreement between the plaintiff and the defendant companies, expected to pay the contract sums into the escrow account.

Following from that the government began making payment to the investment but payment stalled along the line.

Efforts by the plaintiff to get the government to resume repayment failed, resulting in the subsequent suit.

According to the plaintiff, efforts to get the Minister of Finance to pay the money have landed on bare rocks, causing the plaintiff to default in its own obligations to its owners, investors, customers, clients, employees and other creditors.

Particulars of Claims

With respect to the suit against Agyapot, the Minister of Finance, the Attorney-General and Minister Roads and Highways, the plaintiff is praying for a recovery of the sum of GH¢ 4,416,719.37, being the total face value of the accrued but unpaid interim payment certificates due Agyapot under the road contracts.

In the case against Amoh Prempeh Company Limited and the remaining defendants, the plaintiff is seeking the recovery of the sum of GH¢ 13,900,849.73, being the total face value of the accrued but unpaid interim payment certificates (RR IPC No. 1, PK IPC No. 2 and PK IPC No. 2A) due Amoh Prempeh.

Additionally, Ghana Growth Fund Company Limited wants the court to direct the plaintiffs to pay GH¢ 2,415,577.18), being the total face value of the accrued but unpaid interim payment certificates due Reggio Company Limited which in turn owed the plaintiff.

The contracts for the three companies were awarded between 2011 and 2016.

Other Claims

The plaintiff is requesting interest on the total sum, damages for breach of contract, cost and any other additional remedies that the court might deem necessary.

 

Source:Graphic.com

 

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