Oh Not Again...Gov�t To Vomit $28m Judgment Debt!

The unfavorable wind of judgment debt that has swept through the precincts of various Ministries and Agencies consuming scarce funds in the kitty seems to know no bounds as it directs its unrelenting fury this time at the Controller and Accountant General�s Department, the Divestiture Implementation Committee (DIC), and the Ministry of Finance. The Bank of Ghana has been ordered by an Accra High Court (Land Division), to garnishee the bank accounts of the three institutions in order to settle a judgment debt of US$28,595,600.00 owed a company called Sweater and Socks Factory Limited. �The Court Order directs the Bank of Ghana to pay the Plaintiff / Judgment Creditor the cedi equivalent of the sum of US$28,595,600.00(Twenty Eight Million Five Hundred and Ninety Five Thousand Six Hundred United States Dollar). Since this order was made, the Bank has not been served with any further court process challenging the payment or otherwise. Under such circumstances a Garnishee like the Bank of Ghana is obliged to make payment�, stated a Bank of Ghana Memo dated September, 18, 2012. The Memo, a copy of which is in the possession of The New Crusading GUIDE further stated that, �however in view of the directive from Cabinet that all judgment debts and claims above GHC 10M ( Ten Million Ghana Cedis) should be submitted to it or to the Attorney � General for approval prior to final settlement and payment, we have written to the Attorney � General for approval to pay the above � mentioned judgment debt to the plaintiff / judgment creditor�. Another BOG Memo signed by the same Bank official (name withheld) dated 27th September, 2012 stated that, �by letter dated September 18, 2012 to the Honourable Minister for Justice and Attorney � General and copied to the Honourable Minister for Finance and Economic Planning, the Controller and Accountant - General to pay the above � mentioned judgment debt to the plaintiff/ judgment credito. Till date, the Bank has received no response from the Attorney � General and has not been served with any further court process challenging the payment or otherwise. Under such circumstances, a Garnishee like the Bank of Ghana is obliged to make the payment�. On 2nd October, 2012, another BOG Memo indicated that the Bank had been served with a Motion on Notice for Stay of Execution and Affidavit in Support of Motion for Stay of Execution filed by the Attorney-General. Based on that advice, payment of the judgment debt was suspended. However, a Chief State Attorney, Clarence Kuwornu writing on behalf of the Attorney-General on 9th November, 2012 stated that �indeed the Court of Appeal did not uphold the applicant�s application for stay of execution�. For their failure to comply with the court order, the Plaintiffs Sweater and Socks Factory Ltd and Habib George Beany acting as Applicants want the BOG committed for Contempt of Court. The case was called today at the Cocoa Affairs Court room 22. Please stay tuned