<<Print>>

The acting Chief Director of the Ministry of Water Resources, Works and Housing, Alhaji Ziblim Yakubu, has told the Judgment Debt Commission that the ministry has settled all its debts to African Automobile Limited (AAL) in respect of the cost of servicing and maintenance of Mitsubishi vehicles for the ministry. He has, therefore, stated that the ministry does not owe the AAL in respect of that transaction. Alhaji Yakubu was subpoenaed to furnish the commission with copies of agreements relating to balances the AAL is demanding from some ministries, departments and agencies (MDAs) that had their vehicles serviced by the AAL. In 2008, the AAL sued the Ministry of Finance and the Attorney-General, listing 20 MDAs that had defaulted in payment for vehicles the company had serviced. The AAL secured judgement debt in the sum of GH�8,379,124.71 against the state, but some public servants in those entities who appeared before the Judgment Debt Commission had no idea about the judgment the AAL obtained for which the Ministry of Finance had to pay. Alhaji Yakubu said he had not seen any agreement to that effect and explained that the agreement for the AAL to maintain and service vehicles was associated with the World Bank Project. Giving details on the issue, the acting chief director indicated that, under the project, 27 vehicles were bought at a cost of 41,333,400 Japanese Yen. Ninety per cent of the cost was paid upfront, and 10 percent was to be paid upon the delivery of the vehicles. Alhaji Yakubu stated that on October 28, 1996, 90 per cent of the cost was paid with a Letter of Credit from the then Trust Bank and in April of the following year, the remaining 10 per cent which was counterpart funding, was also paid after all the 27 vehicles were delivered. �We do not owe Africa Automobile because as far as the ministry is concerned, we have settled them,� he added. The AAL, as of 2008, was demanding GHc18,830,000 for service charges and that had interest accrued. What baffled the Sole Commissioner, Mr Justice Yaw Apau, was that none of the 20 MDAs was a party to the suit and the Ministry of Finance never contacted any of those entities and yet went ahead to pay. The Commissioner for Support Services at the Ghana Revenue Authority (GRA), Mr Anthony Ewereko Minlah, was also at the commission to answer why a withholding tax was not paid by New World Investment Limited. He said there was no record of the payment of the withholding tax, which is usually deducted by the Ministry of Finance and paid to the GRA. Last week, the Chief Executive of New World Investment Limited, Ms Carol Annang, was subpoenaed to explain why the company sued the Ghana National Procurement Agency Limited (GNPA). She averred that the company had advanced some money to the GNPA from a fund it managed for AngloGold Ashanti for the importation of sugar, but the GNPA failed to import the commodity for which reason it was sued for breach of contract.