Request to DICs to contribute is Cabinet decision — Omane Boamah
The request by the Ministry of Trade and Industry (MoTI) for Destination Inspection Companies (DICS) to contribute to the payment of judgement debt owed to Bandswitch was in line with government decision, the Minister of Communications, Dr Edward Omane Boamah, has said.
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He said the action was not an end in itself, but part of actions under consideration by the government.
In an interview with the Daily Graphic in Accra yesterday, Dr Boamah said comments by the Ministry of Finance (MoF) and the MOTI on the issue were in unism, contrary to views among the public that they were speaking at cross purposes, adding that the results from the various actions taken by the MoF, MOTI and the Attorney General’s (AG) Department would all end before the Cabinet.
He said what was essential was that “we are looking at innovative and legitimate means of paying the judgement debt”.
All on common ground
He said it would be improper to enter into a payment regime which after analysing costs would not benefit the country in the next five years but inure to the benefit of Bandswitch.
“So we should be looking at alternative means of paying the debt which means that the contract will not be given to Bandswitch,” he said.
The Daily Graphic last Monday carried a story in which the Trade and Industry Minister, Ekwow Spio-Garbrah, said the “Expression of Interest” offers by the five companies had been submitted to the Ministry of Finance for consideration and action.
He explained that the Ministry of Finance was the institution that paid judgement debts hence the need for MOTI to refer the offers to it before taking action.
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MOTI Reacts
It would be recalled that the Ministry of Trade and Industry, in a statement over the weekend, explained that it decided to ask the DICs to help settle the debt to avoid a double payment to Bandswitch.
It said until recently, Bandswitch had sought to have the government pay the entire judgement debt over a five-year period and also demanded an award of 0.35 per cent of the FOB values of all Ghana’s imports over five years.
“This supplementary award of 0.35 per cent of FOB imports over five years, were it to be accepted by the Government of Ghana, would imply a contract to Bankswitch that would be worth more than GH¢1 billion over five years.
“This additional overpayment to Bankswitch of more than GH¢1 billion would be over and above the full settlement by the Government of Ghana of the GH¢197 million debt, whether paid in one lump sum or over a number of years,” it said.
According to the ministry, it was that 0.35 per cent of Ghana's import trade bill that Bankswitch would wish to be awarded that the Ministry of Trade had invited DICs interested in paying off the Bankswitch debt to present expressions of interest to prevent the people of Ghana from being milked an extra GH¢1 billion for no work done.
It said the MOTI's open and transparent invitation, on an official Government of Ghana letterhead to five destination inspection companies to express interest in pre-paying the GH¢197 million, was motivated by the national interest in saving the country more than GH¢1 billion in overpayments that Bankswitch was seeking from the people of Ghana.
MoF Statement
Meanwhile the MoF in a statement issued last Tuesday said after the Permanent Court of Arbitration's ruling against the Government of Ghana, which awarded a cost of GH¢197.4 million plus a legal cost of US$4.5 million, the government engaged Bankswitch Ghana Limited to seek ways which would be beneficial to the government to pay the judgement debt.
The government team, it said, made up of officials from the AG's Department, the MoF and the Ghana Revenue Authority (GHA), had been holding meetings to negotiate the settlement.
“The committee has come out with proposals which are yet to be approved by Cabinet,” the statement said, adding that the “government will take a decision which will be beneficial to the country while respecting the rule of law”.
Writer’s email: victor.kwawukume@graphic.com.gh