High Court to rule on Hanisa Forefront vs Euroget case

The Commercial Division of the Accra High Court will on June 6, 2018, rule on whether to allow independent adjudication in the tussle between Egyptian construction giant, Euroget De Invest, and one of its sub-contractors, Hanisa Forefront.

Hanisa Forefront sued Euroget, which is currently executing about nine health facility projects for the government, claiming it (Euroget) illegally terminated a contract between the two entities.

Other defendants

Also named in the suit as defendants are five other companies which Hanisa claims are linked to Dr Said Derez, the Chairman of Euroget.

They are Nakia Company Limited, Gold Cost Refinery Limited, Samnort Industries Limited, Sampson Nortey and Basfis S.A.

The plaintiff (Hanisa Forefront) averred that Euroget, acting through Dr Derez, contracted it (Hanisa) to construct access roads and drains valued at $3.95 million at the ongoing 500-bed military hospital project at Afari in the Ashanti Region.

Hanisa accused Euroget of unlawfully terminating the contract because it was unable to fully pay a “secret commission” of $2.7 million as demanded by the chairman of Euroget.

Euroget, however, says it terminated the contract because Hanisa failed to execute the project within the specific timeframe and that the project did not meet the required standard.

Independent adjudication

At yesterday’s hearing, lawyers for Euroget prayed the court to stay proceedings of the case, and rather give the greenlight for an independent adjudication to resolve the case.

According to them, such a move was in line with the contract that was signed between the two companies.

Under an independent adjudication, the case could be referred to the Ghana Institute of Engineers (GhIE).

The GhIE will appoint a senior engineer to look at the case purely on technical grounds. Euroget and Hanisa will also be allowed to appoint an engineer each, and together the panel will decide whether or not the work executed by Hanisa met the required standard.

The decision of the panel of engineers will then be sent to the court, which will then adopt it or factor it into its final decision.

But the request by Euroget’s lawyers was rejected by the legal team of Hanisa.

They argued that such a move was rather alien to the contact, and that the issue before the court was purely an issue of breach of contract.