Attorney-General and Minister for Justice, Godfred Yeboah Dame
An international arbitration tribunal in London has dismissed the GH₵4 billion claim filed by Ghana Community Network Services Limited (GCNet) against the Republic of Ghana. In a comprehensive 202-page award dated November 18, 2024, the tribunal ruled in favour of Ghana, ordering GCNet to pay $2,185,983.21 in legal fees.
The tribunal’s decision includes $1,744,050.42 for legal representation and $441,932.79 for the fees and expenses of Ghana’s expert witness. Interest on the total amount will accrue at the USD SOFR + 1% rate from 30 days after the award date until payment.
GCNet, represented by Quinn Emanuel Urquhart & Sullivan, LLP, and two Ghanaian firms, Beyou and Co. and ENS Africa, challenged the termination of a Service Agreement by the Government of Ghana. The agreement, initially effective from 2002, granted GCNet exclusive rights to develop and operate an electronic system for processing customs payments and trade documents at Ghanaian ports. Despite multiple extensions, the NPP administration terminated the agreement in April 2020 after a value-for-money assessment.
GCNet sought compensation of GH₵3.3 billion for alleged wrongful termination and past breaches, including GH₵2.1 billion for termination and GH₵1.19 billion for breaches related to government exemptions and discounts to importers. The company also sought pre-award interest and legal fees.
Ghana, represented by the Attorney-General’s office led by Godfred Yeboah Dame, argued that the agreement included a specific regime for assessing GCNet’s entitlements, limiting compensation to $6 million. The tribunal upheld Ghana’s interpretation, finding that the termination was lawful and that GCNet had waived its rights to seek damages for the impact of exemptions and discounts.
The tribunal awarded GCNet $5.4 million for early termination but ruled that GCNet was the unsuccessful party and, thus, liable for Ghana’s legal costs. This decision marks a significant victory for Ghana, saving the nation billions of cedis.
GA
Watch George Ayisi’s interview with Adam Bonaa on the recent unrest in Bawku below:
Watch George Ayisi’s interview with Adam Bonaa on the recent unrest in Bawku below:
