Gabby replies Ablakwa over GH₵187.3m West Blue arrears

Africa Legal Associates (ALA) says its provision of legitimate and bonafide legal services to West Blue Ghana Limited is in respect of dispute over arrears the company claims it is owed for services it rendered under the National Single Window and Integrated Risk Management System Contract. 

The law firm says it is not the only law firm offering similar services to companies whose contracts were signed by the John Mahama government, which the current government is having issues fulfilling the terms. 

The Labone-based law firm has also clarified that the claim is not over termination of the National Single Window (NSW) Contract, which began in September 2015 and terminated in December 2018.

A statement signed by Gabby Otchere-Darko, Senior Partner of ALA, said ‘It is simply a dispute over arrears owed for work already done and a claim for monies due it in accordance with the express terms of the said contract between the parties.’

The statement was in response to accusations leveled against ALA and Otchere-Darko by Member of Parliament for North Tong Samuel Okudzeto Ablakwa in respect of the demand for payment.

West Blue executed a contract dated August 4, 2015, on behalf of Ghana Revenue Authority (GRA) and the Ministry of Finance (MoF).

The contract stipulates that West Blue shall be paid a fee equivalent to 0.35% of the final invoice of Cost, Insurance, and Freight (CIF) value of import consignments entering into Ghana through the seaports, airports and land borders from time to time.

Going strictly by the express terms of the contract, West Blue calculates the arrears still left outstanding to be in the sum of GH₵ 187.3 million (GH₵ 187,356,969).

A demand letter providing details of the sum of GH₵187.3 million (GH₵ 187,356,969) owed West Blue, was submitted to the Ministry of Finance on July 28,  2020 by the previous lawyers of West Blue, Bentsi-Enchill, Letsa & Ankomah.

West Blue changed lawyers when little progress was apparently made. However, Mr Otchere-Darko admits that very little or no progress has been made by his firm in recovering the disputed arrears and queries the “scandal” that the MP refers to in his exposé.

The Ministry of Finance and GRA deny the claim of West Blue and took the position that 0.35%  is calculated on the total inspection fees, which is merely a constituent of the total CIF, paid on imports.

The law firm said, in view of the position taken MoF and GRA, West Blue has not been paid any part of the amount in respect of the arrears being claimed. 

It clarified that West Blue continued to render services to the government under the contract, following an extension of the said contract after the termination of December 31, 2018, a period not included in this claim.

ALA said it was engaged by West Blue Ghana Limited on April 29, 2021.

The law firm said it has written numerous letters to MoF and GRA to explain the legal justification of West Blue’s claim.

It said, per a letter dated August 5, 2021, the Attorney General, who is the chief legal advisor to the Government, was requested to assist the parties with a legal opinion to clarify the legal operation of the key terms of the NSW Contract.

According to ALA, this request was made pursuant to a mutual understanding between its lawyers   representatives of GRA during a meeting held to discuss West Blue’s claim.

On 13 December 2021, ALA said it wrote to the Attorney General for an update on the request for the legal opinion and West Blue’s claim in general, as all efforts to procure an update from MoF and GRA had proven futile.

“In the Attorney General’s response to us, we were advised to contact the MoF and GRA as they had been furnished with the legal opinion by the Attorney General’s office.

“The MoF and GRA have consistently refused to share the legal opinion with us despite numerous requests for the same.

“They have also refused to meet with our client since 2021 to explore a possible settlement of our client’s claim which, if not settled, could result in a hefty judgment debt against the country.

“It is imperative to emphasise that no money has been paid to our client since we made the demand on MoF and GRA on our client’s behalf. Not a pesewa. Indeed, the MoF and/or GRA have not sat down with ALA or the client directly to even attempt a negotiation,” ALA explained.

According to the law firm, until the release of Ablakwa’s article, ALA had not been afforded notice of the content of the legal opinion of the Attorney General on the matter. 

“If, as purported by you, the chief legal advisor to the Government is of the opinion that our client’s claim is of merit, then this revelation by you is much appreciated by us, as it actually validates the legitimacy of our client’s claim.

 “Further, a Notice of Intention to Sue was issued by ALA in a letter dated 01 March 2022.

“In a bid to further allow the Government ample opportunity to address our client’s claim, ALA, per a letter dated 22 July 2022, issued a reminder to the Attorney General to respond to our Notice of Intention to Sue.

“It was only in October 2022 that ALA received an invitation from the Attorney General’s office, to attend a meeting together with MoF and GRA to discuss matters relating to our Notice of Intention to Sue.

“At the meeting, the parties rehashed their positions following which the Attorney General requested written submissions from all parties.

“ALA complied and submitted its client’s position but has not received that of either the MOF or GRA. Indeed, until your generous release of the Attorney General’s opinion(s), as far as we were aware, no real progress had been made,” it said.