5 top Directors face contempt charges ...over failure to adhere to court order...over failure to adhere to court order

The Directors of a financial consortium, Activity Venture Finance Company Ltd. (AVFCL), owned jointly by the Ghana Commercial Bank (GCB) and the Agric Development Bank (ADB) are facing contempt charges, following failure to adhere to a court order.

The directors facing the contempt charges include the acting Chairman of AVFCL, Mr. Peter Amankwah; Madam Elizabeth Coch, representing GCB; Mr. Adabo, representing ADB; Messrs Nyarko and Osafo Mensah, representing AVFCL.

The defendants have allegedly disregarded an Appeal Court order to AVFCL to pay 50% of about ¢1.9billion judgment debt owed a financial institution, JCS Investment Limited for unlawful abrogation of contract.

Things began to fall apart soon after the assassination of the GCB Deputy Managing Director, Mr. Rokko Frimpong, who was also the Board Chairman of the financial company. The next Board Chairman, Mr. Amankwah, on June 12 2008, wrote a notice to JCS obout termination of an agreement between AVFCL and JCS with immediate effect.

Management of JCS, who were not enthused with the termination sued AVFCL for the sum of $180,000 being entitlements due them under the agreement and interest on the amount till date of final payment.

The High Court, presided over by Justice I.O. Tanko, on June 8, this year, ruled in favour for the reliefs claimed against the defendant. “An order for the recovery of the sum of US$118,000 or its equivalent in Ghana Cedis, at the prevailing interbank foreign exchange rate.

There shall be interest thereon at the prevailing commercial bank interest rate from June12 2008, till day of final payment. Having already dismissed Defendant's counterclaim and the plaintiff having succeeded in its claim, I shall award costs of GH¢15,000 in favour of the plaintiff,” the judge intimated. Justice Tanko noted that the termination of the contract was without cause.

The directors of AVFCL, who were not in agreement with the decision of the High Court appealed against the decision and requested for stay of execution. However, on October 27, the Appeal Court in Coram Justices Asare Korang, Marful-Sau and Ofoe ruled that the application for the stay of execution had been granted on a condition.

They stated the condition as follows -”Payment of 50% of the judgment debt to the Plaintiff/Respondent within 21 days of this order, that being the only order this court will make pending the hearing and determination of the appeal. No order as to costs.”

Since the directors failed to pay the amount as directed, even though the duration for payment had elapsed, JCS has gone back to court to file contempt case against the directors. The case would be heard on Wednesday