The Bank of Ghana is expected to justify next week Wednesday [November 30, 2016], in court, why one of government’s account should not be frozen following the ruling in the judgment debt case between non-bank financial institution, NDK Financial Services and government.
An Accra High Court granted NDK Financial services a garnishee order following a certificate of judgement obtained on 23rd August 2016.
The order directed that certain accounts of government be frozen while the Bank of Ghana appears in court to explain why monies in the affected accounts should not be used to pay the judgment debt to NDK.
Information available to citibusinessnews.com indicates that government in 2005 awarded a contract to a businessman for the execution of rural electrification project across the country.
Upon securing funding from NDK, an agreement was reached that all payments by government be made into the joint account by NDK and the businessman in question.
But NDK says it subsequently realized government has reneged on its side of the bargain as some payments had been made but not in the name of the joint account operated by NDK and the businessman in question.
NDK therefore pursued the case at the High and Appeals Courts between 2009 and 2013 where it secured victory in both cases.
Though the Attorney General subsequently went to the Supreme Court for a review in 2015, it lost the case.
The Court of Appeal yesterday [November 22, 2016] also struck out a notice for stay of execution of the Supreme Court judgment and certificate judgment filed by Attorney General after the lawyers for the Republic of Ghana failed to make an appearance.
Meanwhile early this year, the Supreme Court unanimously upheld an application by NDK which indicated that the nature of interest payable was compound at 6.5 percent and should be calculated from the date of contract to the date of final payment.
The completion of the garnishee proceedings by the court will among others enable NDK access to funds in the frozen accounts.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana