Vision1 FM                       Light FM                         Light TV

UG slapped with $160m judgment debt

The University of Ghana has been slapped with a $160million judgement debt at an International court for unfairly terminating a contract started under the regime of the former Vice Chancellor Professor Ernest Aryeetey in 2014.



The ruling dismissed the two claims by University of Ghana and awarded termination costs of more than $160 million to the project developers – Africa Integras Project.

The ruling in London delivers a huge image blow to the University of Ghana and a major financial loss to Ghana.

The University, back in 2014, entered into a Public Private Partnership (PPP) agreement with Africa Integras to invest US$64 million in the construction of 1,000 new students’ hostel beds for undergraduate and post-graduate students on the Legon campus.

The project was structured as a 25-year Build, Operate and Transfer (BOT) contract.

But after the change of leadership in 2016, the new university council raised questions about the deal, particularly relating to the overall cost to the University.


However, Prof. Aryeetey insisted the processes leading up to the signing of the agreement with Integras were transparent, with all relevant stakeholders being kept informed of all developments.

“There is no scandal at all in relation to the $64.4 million contract. Africa Integras signed an agreement that they were supposed to spend that money. As far as I know, by the time the project stopped, they had spent about $28 million. How does a phony company come and spend $28 million? You can see the buildings coming up and yet it has been written that I have signed an agreement with a phony company. We haven’t spent any money ourselves, it’s the ‘phony’ company that’s spending the money; how does a phony company put up buildings?,” Professor Aryeetey asked.

The Arbitrator, however, did not accept the UG argument that the Concession Agreement signed by the two parties was not enforceable.

University of Ghana had sought to present the agreement as not being enforceable, claiming that its own procedures followed in preparing the Concession Agreement were flawed and did not follow due process.

The Arbitrator found nothing wrong with the process followed in preparing the Concession Agreement.

 

Source:Starrfmonline.com

More Lifestyle..

Dede Ayew to captain Fenerbahce. Dede Ayew to captain Fenerbahce. 2018-10-17 - Ghana football star, Dede Ayew has been appointed by Fenerbahce...
ALOT HAS BEEN ACQUIRED IN JUST 20 MONTHS -Bawumia. ALOT HAS BEEN ACQUIRED IN JUST 20 MONTHS -Bawumia. 2018-10-17 - Vice president Dr Mahamudu Bawumia has restate the resolve of...
Prudential Bank not Collaspsing Prudential Bank not Collaspsing 2018-10-10 - The management of Prudential Bank Limited has asked its customers...
COFOUNDERS OF INSTAGRAM ARE QUITTING UNDER CLOUD. COFOUNDERS OF INSTAGRAM ARE QUITTING UNDER CLOUD. 2018-10-02 -  Instagram's cofounders Kevin Systrom and Mike Krieger said...
BARCELONONA UPDATE CREST BARCELONONA UPDATE CREST 2018-09-28 - La Liga champions barcelona has finally proposed a change to...

 

More News..

No Lesbianism at OLA -Headmistress No Lesbianism at OLA -Headmistress 2018-10-20 - The Headmistress of Our Ladies of Apostles (OLA), Ho, Madam Regina...
7 year old girl found dead at Ashaiman. 7 year old girl found dead at Ashaiman. 2018-10-20 - Luwisa Saah a 7-year-old girl, has been found dead in an uncovered...
NADMO warns Consumers on expired Tilapia on the market NADMO warns Consumers on expired Tilapia on the market 2018-10-19 - The National Disaster Management Organization (NADMO) is warning...
SSNIT on registration and massive inspection. SSNIT on registration and massive inspection. 2018-10-19 - The Social Security and National Insurance Trust (SSNIT) has...
Call time charges to shot up November 1 . Call time charges to shot up November 1 . 2018-10-18 - Telecommunication organisations have announced their charges...
Killers of Adams Mahama with ACID confirmed. Killers of Adams Mahama with ACID confirmed. 2018-10-18 - Killers of Adams Mahama have been confirmed that Gregory Afoko...
Mrs. Rebecca Akuffo Addo, inaugurates two projects at Cape Coast Teaching Hospital. Mrs. Rebecca Akuffo Addo, inaugurates two projects at Cape Coast Teaching Hospital. 2018-10-18 - The First Lady of Ghana Mrs Rebecca Akufo-Addo has inaugurated...