Mould-Iddrisu states case in CP's judgement debt

Betty Mould-Iddrisu

Former Attorney-General and Minister of Justice, Mrs , has refuted claims that she acted wrongly in the payment of € 94 million to CP Construction (CP) as a judgement debt.

A statement issued on her behalf by her solicitors yesterday stated that Mrs Mould-Iddrisu, “at all material times, acted professionally to protect the image of Ghana internationally and in the best interest of the State” and “believes that her true role in these matters will be established in the fullness of time”.

Until recently the Minister of Education, Mrs Mould-Iddrisu made it clear in the statement that she acted at all material times in this matter in her capacity as Attorney General and “on the advice and recommendations of lawfully, constituted public officials and institutions”, stressing that “she had written Executive approval to negotiate this judgement debt among others”.

It said decisions arrived at in the CP judgement debt payment was based on recommendations of the Civil Division of the Attorney General’s Department, which acted “on the advice of accredited external foreign legal advisors who were already handling the CP Construction brief at the International Chamber of Commerce (Arbitral Division) when she entered office as Attorney General in February, 2009”.

The statement, therefore, denied any wrongdoing during her tenure as Attorney General and in particular her role as Attorney General in the settlement of claims raised against the Government of Ghana by CP Construction.

Giving a background to the CP Construction judgement debt saga, the statement said following a critical meeting on May 28 and 29, 2009 in Accra, between the Government of Ghana and the CP Construction, a major breakthrough was made in the long-standing negotiations of all CP Construction claims against the Government of Ghana amounting to nearly € 162 million.

It said the two negotiating parties eventually settled on a figure of € 94 million after much wrangling.

“Based on the advice of a Government of Ghana committee, which included representatives from the Attorney General’s Department, Ministry of Transport and Ministry of Finance, and in the face of outstanding undisputed verified certificates for works done, as well as earlier documented admission of liability and recommendations for payment made by her predecessor, Mr Joe Ghartey, and Dr. Richard Anane, the former Minister of Roads and Transport, our client endorsed recommendations for the payment of the amount of €13,165,403.13 to CP Construction as evidence of Government of Ghana’s commitment to the settlement arrangement,” it said.

The statement said based on that payment, CP Construction agreed to a Government of Ghana’s request for the balance of € 80 million to be spread over a period of three years while CP Construction, by that Settlement Agreement, was also to stay enforcement and execution of the awards obtained at the International Chamber of Commerce and to freeze interest that may be due from a stated date.

“The advance payment was, therefore, necessary to stay threatened execution proceedings from December, 2008 arising out of a second award obtained by CP Construction and entered against the Government of Ghana by the International Chamber of Commerce in late 2008. Some of the debts had remained unpaid and undisputed for well over 20 years. Ghana’s non-payment gave rise to actions by which the Government of Ghana’s properties were being attached in execution of judgement all over Europe, including Belgium, France, England, as well as Ghana‘s United Nations Account in United States of America. This account includes payments received for Ghana’s Peacekeeping Missions,” it added.

The statement explained that in an earlier case of defiance and non-payment of a related debt owed to CP Construction in respect of completed works in Obuasi township, Ghana Cocoa Board assets in London were attached in execution on June 2, 2008, stressing that “the same was released only after Mr. Joe Ghartey, our clients‘ predecessor-in title, had recommended and the then Ministry of Finance had paid the sum of over £7 million on or about the 13th of June 2008 to CP Construction to cover the outstanding indebtedness for completed works in Obuasi Township”.

The statement said Mrs Mould-Iddrisu found it distressing and unfortunate that some key officers who participated in the negotiation at various times were out of office while some of those who were still at post “appear to be overly reticent and not forthcoming with explanation and or accepting legitimate roles played by them for whatever reason they may have”.

It cited that the Settlement Agreement of March 18, 2010 signed between Government of Ghana and CP Construction was being challenged as being fraudulent and unprofessional since a document (Final Award-Award by Consent) attached to the Settlement

Agreement purportedly emanating from the Court of Arbitration of the International Chamber of Commerce was not signed by the arbitrator, nor does it bear a suit number of the International Chamber of Commerce and same was undated.