Godfred Yeboah Dame
In a major victory for Ghana, an international arbitration tribunal seated in London has dismissed Ghana Community Network Services Limited (GCNet) claims of wrongful termination of its contract with the government.
The tribunal instead ordered GCNet to pay Ghana US$2.185 million in legal fees.
Background of the Dispute
GCNet had challenged the government’s termination of its contract, which granted the company exclusive rights to develop and operate an electronic system for processing customs payments and trade documents at Ghana’s ports.
The contract, initially signed in 2000, had been extended multiple times without statutory approval.
Government’s Case
The Attorney-General, Godfred Yeboah Dame, argued that the termination was lawful and in accordance with the agreement’s terms.
He also contended that GCNet had waived its rights to seek damages for exemptions and discounts granted by the government.
Tribunal’s Decision
The tribunal unanimously ruled that Ghana had validly terminated the contract and that GCNet had waived its rights to seek damages.
The tribunal also found that the exemptions and discounts did not breach the service agreement.
Implications
This decision saves Ghana over GHC 4billion and reinforces the government’s authority to terminate contracts deemed unfavorable.
The outcome is a testament to the Attorney-General’s leadership and expertise, as Ghana did not rely on foreign counsel, saving millions in legal fees.
BY Daniel Bampoe