Government error costs state fortune in stadia construction saga

Published on: 21 December 2011

The failure of the Attorney General to put up a defence in court has seen the state lose in excess of GH¢58m to businessman Alfred Woyome.

The staggering amount was the cost awarded to Woyome for his claims of ‘illegal’ abrogation of a contract to build stadia in Accra and Kumasi for the hosting of the 2008 Africa Cup of Nations during the NPP regime.

However it has emerged that the AG at the time (Betty Mould-Iddrissu) erred massively in ordering payment of the cost without putting up a defence in court due to the believe the case was a bad one.

Per the available facts, not only was the date to which the claims were being made (from 2001) wrong, but also the payments unjustified since it has already been done when the then Government decided to terminate its dealings with Austrian firm VAMED to which Woyome represented.

Apparently, VAMED and Waterville Holdings Limited (said to be part of VAMED) had defaulted in securing funding for the building of the stadia hence the abrogation.

Subsequently, Waterville collaborated with Micheletti and Consar to construct the stadia and the latter (Michelletti and Consar) agreed to settle the amounts outstanding to Waterville for its initial work – meaning the state was absorbed of any claims to be made by VAMED/Waterville.

However Government of Ghana complied with a court ruling by paying the amount of GH¢58,811, 480.59 into the personal accounts of Alfred Woyome because it failed to put up a defence in court.

Subsequent efforts made by the AG because it has realized it erred by not putting up a defence because indeed, documentations made available suggests there was a case to fight for to return the amount were thrown out by the courts.

However the state has filled another writ at the commercial court on Wednesday morning in a fresh effort to have the money returned.

The opposition NPP has called the act of the then AG, now Minister of Education gross negligence and reckless thus warranting a sack as a minister of state.

Ghana’s President John Atta-Mills has however ordered for the Economic and Ogranized Crime Office to launch a full investigation into the matter after which government will determine the next line of action.

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