West Blue Ghana Sues AG and GRA Over Debt

(Photo Credit: yen.com.gh)

West Blue Ghana has taken legal action against the Attorney-General (AG) and the Ghana Revenue Authority (GRA) for failing to remunerate the company for work completed under the National Single Window and Integrated Risk Management System contract established in August 2015. The company, in a suit filed at an Accra High Court on Tuesday, November 14, is seeking the court's intervention to compel the Attorney-General and GRA to fulfill their payment obligations for the services rendered.

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The lawsuit was initiated due to the inability of West Blue to retrieve the outstanding debts, despite various attempts including communication through legal representatives to the Ministry of Finance and the GRA. West Blue claims that the defendants have obstinately maintained their stance, asserting without lawful basis that all payment obligations owed to the company have been settled.

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The unpaid fees stemmed from the government's failure to fully compensate West Blue for the contract price, which entails a fixed percentage of the final invoice Cost, Insurance, and Freight (CIF) value of import consignments entering Ghana through its seaports, airports, and land borders.

Contractual Dispute

Under the terms of West Blue's contract with the government, facilitated through the Ministry of Finance and the GRA, the IT company was entitled to a contract price equivalent to 0.35 percent of the final invoice CIF value of import consignments entering the country. However, the former deputy finance minister, through various correspondences, adjusted this figure to 0.28 percent, contrary to the initial agreement.

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Breakdown of Outstanding Payments

In the suit, West Blue is seeking to reclaim the following amounts jointly and severally from the Attorney-General and GRA:

- GH¢149,357,692.71: Outstanding fees for services rendered from September 2015 to September 2017, calculated at an applicable rate of 0.35 percent of the final invoice CIF value of import consignments.

- GH¢76,097,917.58: Unpaid fees for services provided from October 2017 to December 2018, computed at a rate of 0.28 percent of the final invoice CIF value of import consignments.

- GH¢64,092,215.07: Unsettled fees for services rendered from January 2019 to September 2020, also calculated at the rate of 0.28 percent of the final invoice CIF value of imports.

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The plaintiff is therefore claiming an outstanding payment of GH¢64,092,215.07 for the services provided to the Ministry of Finance and the 2nd defendant between January 2019 and May 2020. This amount is calculated at a rate of 0.28 percent of the final invoice CIF value of import consignments entering Ghana through various entry points like seaports, airports, and land borders. The plaintiff is also seeking the recovery of equipment it had to obtain in order to fulfill its obligations under the NSW contract, along with additional services provided during the mentioned period, totaling a value of US$425,000.

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SOURCE:

-GHANA WEB- "West Blue Sues Government, GRA Over Non-payment Of GH¢289 Million Arrears"