Tony Lithur
Posted on: www.dailyguideghana.com
By
William Yaw Owusu & Rita Oduro
Wednesday, May 28, 2014
Tony Lithur who represented Calf Cocoa International
Ghana Limited in a suit between the firm and the Ghana government yesterday
confirmed to the Commission of Enquiry investigating the payment of judgement
debts that he secured $4.150,127.50 for his client.
He told the commission presided over by Justice Yaw
Apau of the Court of Appeal that the matter ended up in court because the
government at the time refused to release about $2.6million to Calf Cocoa for
its operations.
The
‘Commission of Enquiry into the payment of Judgement Debt and Akin’ under C.I.
79 to investigate the frivolous and dubious payments of huge monies to
undeserving individuals and companies, was appointed by President John Dramani
Mahama after public uproar over the payments in what has now come to be termed
as Judgement Debts (JD).
Notable among them were payments made to CP (€94
million) and the never-ending case of GH¢51.2million parted to the self-styled
National Democratic Congress (NDC) financier, Alfred Agbesi Woyome, both of
which many believed were dubious and frivolous.
History
Narrating the incident that led to the judgement
debt, Mr. Lithur said “I represented Calf Cocoa International in the suit
titled Calf Cocoa International Ghana Limited versus the Attorney General and
the suit was preceded by a letter which I had written on behalf of client to
the AG requesting for the release of certain funds under a subsidiary loan
agreement between the government and Calf Cocoa International.”
He said Calf Cocoa International Ghana Limited is a
joint venture company between Carridem Development Company Limited, an investment wing of the 31st December Women's Movement (DWM) and China International
Corporation Company for horticultural livestock and fishery. It was a company
nominated by the Chinese government to enter into a joint venture agreement
with Carridem for the processing of cocoa for export to China.
He said Carridem, an investment wing of the 31st
December Women’s Movement (DWM) owned 45 percent and Calf Cocoa International
Ghana Limited had 55 percent and there was a general loan facility between the
governments of Ghana and China for certain sums to be disbursed to Ghana.
“Under that general loan facility, several
subsidiary loans were entered into in respect of specific areas of the economy.
This subsidiary loan was targeted at cocoa processing. That loan was for a sum of about $8.750million
supposed to be part of the complete funding required to set up the factory and
start processing,” adding “The difference between $8.750million and the
$10million was supposed to be paid by Carridem which in fact, they did.”
Mr. Lithur said the disbursement started before 2000
and by 2003, the factory had virtually been completed and the final tranche of
that facility was to be what he called “working capital.”
“From the working capital Calf Cocoa was supposed to
be paying for advertisement, cocoa beans, do trial tests and get the company
ready for operation. That was when the problem started,” he said, adding “There
was some reluctance on the part of the Ministry of Finance to disburse the
amount.”
He said the working capital was $2.6millionand added
that the ministry had said they would not pay the amount directly to Calf Cocoa
and that Calf Cocoa should enter into a sales agreement with Cocobod for the
purchase of cocoa beans and the money will be paid directly to Cocobod.
Mr. Lithur said Calf Cocoa’s position was that the
cocoa beans was only a portion of the outstanding disbursement and it still
required the funds to do other things and the stalemate led to the issuance of
a writ against the government on September 8, 2005.
He also said by the time the suit was instituted,
the factory had deteriorated because it had been lying without being operated
for a while and during the case at the Commercial Court in Accra, the amount
that was accepted by the court as constituting the cost of taking the factory
back to an operable state was $1.7million.
“The court in the end delivered judgement in favour
of Calf Cocoa and ordered them to pay the following sums: The undisbursed
amount was $1.8million. The court further awarded damages which was the
material cost for replacing parts at $1.75million.”
He said further that the court awarded interest at
$3.5million till the date of final payment and that interest was calculated and
the figure came to $600,127.65 and that brought the total sum to $4.150,127.50.
He said “quiet resoundingly, the court on March 5,
2008 took the view that the state was at fault and it awarded substantial
damages against the state. Those sums have been paid. In total, the state was
ordered to pay $4.150, 127.50 million.
He said initial payment of the principal judgment debts
was made at $3.550, 000 was made based on instructions from the ministry adding
“The AG’s attention was drawn to the fact that the interest of $600,000 had not
been made and it was also made subsequently.”
Mr. Lithur said the amount that the government should
have disbursed was $1.8million and cost of reinstating the factory which was
additional award made was $1.75 million and in addition was the accrued
interest of $600,127.65 and a cost of GH¢5,000 so the difference would be about
$2.3.
Dometi
Kofi Sorkpor (counsel for the commission): Were you able
to fathom out the reason why the said amount which happened to be the capital
was not released by the government to Calf Cocoa?
Tony
Lithur: It was a little difficult to understand at the time.
I don’t know what was going through the officials mind. We were clear that it
was beginning to sound as if there were improper motives behind the refusal to
release the money pursuant to the agreement both parties had signed.
Sorkpor:
What in your opinion, should governments be doing as far as some of these
matters are concerned?
Justice
Apau (interrupts): Are you seeking his opinion?
Tony
Lithur: I was actually going to decline…My instructions
were lawyers’ instructions.
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