The Attorney-General and Minister for Justice has been urged to resolve the on-going dispute over payment of judgement to Rana Motors for three KIA vehicles purchase by the Ministry of Local Government and Rural Development (MLGRD).
Mr Justice Yaw Apau, Sole Commissioner of the Judgement Debt Commission said, the vehicles which were now packed, following a court order instituted by the Attorney General (AG) preventing the Company from confiscating them from the MLGRD, and auctioning them would with time go waste and in addition, attract further judgement debt.
He suggested that the MLGRD must be allowed to take back the vehicles, and continue using them for the benefit of the state, or Rana Motors be allowed to auction them to off-set the judgement debt incurred by the state following an earlier court ruling in favour of the Company.
Mr Justice Apau made the appeal on Wednesday during the Commission’s sitting in Accra, when Mr Vincent Adzato-Ntem, MLGRD Chief Director appeared before it to give account of outstanding claims of compensations and services rendered to the Ministry.
Mr Adzato-Ntem recounted that the defunct Centre for Urban Transport (CUT) under the Ministry, was created to facilitate the formation of Urban Passenger Transport Units in the participating Metropolitan and Municipal Assemblies.
He said in 2011, the Ministry received a request from CUT to procure three four-wheel drive KIA vehicles from the project fund, which was subsequently forwarded to the Public Procurement Authority for approval.
He said after the approval, the Ministry wrote to five selected companies for the supply, but only Japan and Rana Motors submitted their bids, with the latter eventually selected for presenting a low cost bid.
Mr Adzato-Ntem said the Ministry signed an agreement with Rana Motors in August, 2011 and the three vehicles were supplied to CUT.
He said, however, when the Ministry wrote to the World Bank for the payment to be made from the project fund, the Bank declined, saying they (World Bank) did accept selective bidding, and that it should have gone through an advertisement process in the media for interested companies to apply.
He said following the failure of the Ministry to honour the agreement, Rana Motors then proceeded to court and obtained a judgement debt of GH₵ 330, 750.30 against the state.
Mr Adzato-Ntem stated that the delay on the part of the state to honour the judgement debt payment prompted Rana Motors to confiscate the vehicles in November 2013, for auction sales in order to off-set the debts.
He noted that the AG however, went to court and obtained judgement, blocking the Company from confiscating and auctioning the vehicles.
The Chief Director said the Ministry was now relying on its budgetary allocation from the Ministry of Finance and Economic Planning to be able to pay the judgement debt.
Mr Adzato-Ntem said the CUT project came to an end in December, 2012, but its 15 former staff had sued the Ministry at the National Labour Commission for their end of service benefits.
He said another outstanding claim against the Ministry was by Sirus Ghana Limited.
He said the Company was contracted by the Community Water and Sanitation Agency of the Ministry, to drill 113 boles at the cost of GH₵ 975,000.
He said the company was given a mobilization fund to start the project, but after drilling 10 boles in Yendi, it sued the state for GH₵ 80,000.
The Director said the Ministry was however, still studying to see if the mobilization fund released earlier on, could cover the cost of the 10 boles.
Other state institutions that appeared before the Commission to present information on any outstanding claims against them, were the Bank of Ghana, the Bureau of National Investigations and the Minerals Commission.
The Bank of Ghana represented by Mr Nana Egyapong, Schedule Officer for Government Payments and Saviour Kudze of the Legal Department sought for clarification on the terms of reference of the subpoena, and asked for an adjournment.
The Commission has since granted their request and they are to re-appear before it on Wednesday, May 28.
Mr Kofi Dometi Sokpo, counsel for the Commission, said the Ministry of Education, which was also supposed to appear before it, had requested that it be re-scheduled to appear on June 11.
The Sole Commission has adjourned sitting to Thursday, May 15.
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