Ghana Growth Fund, a subsidiary of Groupe Ndoum, has commenced a number of legal suits against the Finance Ministry as well as other ministries, in a last-ditch attempt to retrieve over GHS2.2 billion owed to the company.
The embattled company in its first three separate suits is chasing the Finance and Roads and Highways ministries for their inability to honour obligations to road contractors who had taken loans from the GN subsidiary to execute some road contracts.
In a writ filed on July 9, 2019, the Ghana Growth Fund Company takes on the two ministries over their failure to honour a GHS13.9 million debt owed Amoh Prempeh Company, a contractor.
The GN subsidiary prayed the court to compel the government to pay the outstanding debt as well as interest that may have accrued on the amount and also damages for breach of contract.
Other two suits filed the same day as the initial one, had a total value in excess of GHS6 million being owed to contractors. The Ghana Growth Fund also pleaded with the courts to award other costs as they may deem necessary.
More suits coming
Gold Coast Securities and GN Bank, all subsidiaries of the Groupe Nduom, have faced a protracted liquidity challenge which has seen people who lodged funds with the two institutions unable to access them.
Sources at the two institutions have always insisted that their challenges have stemmed out from the government’s inability to honour payments to contractors who were funded with cash from clients of these companies.
According to a source that asked not to be named, GN subsidiaries have advanced more than GHS2 billion to various contractors and the Groupe, having tried all means possible to retrieve the outstanding debt, will seek redress in the law courts.
The suits filed this week, the source said, only marks the beginning of GN’s approach to retrieving its funds that have been locked up loans advanced to contractors that executed government jobs.