West Blue Ghana Limited filed a lawsuit against the Attorney-General (AG) and the Ghana Revenue Authority (GRA) at the Commercial Division of the High Court in Accra over the termination of the National Single Window and Integrated Risk Management System (NSW) contract, amounting to over GH¢289 million.
According to the company, they entered into a contract with the government of Ghana on August 4, 2015, to provide technical services to facilitate the efficient clearing of cargo through the sea and airports.
However, the GRA and the Ministry of Finance terminated the contract during the delivery of services under the NSW.
Following unsuccessful attempts to recover outstanding debts through legal counsel, West Blue initiated legal proceedings against the defendants.
The company seeks the recovery of GH¢149,357,692.71 as outstanding fees for services rendered from September 2015 to September 2017. This is based on an applicable rate of 0.35 per cent of the final invoice value of import consignments entering Ghana through seaports, airports, and land borders.
Additionally, West Blue aims to recover GH¢76,097,917.58 for services provided from October 2017 to December 31, 2018, and GH¢64,092,215.07 for services rendered from January 1, 2019, to May 2020.
The company also seeks the recovery of equipment procured for obligations under the NSW contract and additional services rendered during the specified period.
In its statement of claim, West Blue emphasizes that the NSW contract was part of the government’s policy to implement a National Electronic Single Window, enhancing efficiency and cost savings for traders dealing with government authorities in cross-border cargo movements.
The company was obligated to provide technical services and support activities to the GRA and related agencies in support of the government program.
NPP’s POSITION ON THE WEST BLUE CONTRACT
In opposition, the NPP raised fire and brimstone and mounted the most fierce resistance to the National Single Window System and an Integrated Risk Management System contract awarded to West Blue Ghana Limited on 4th August, 2015.
The NPP’s Alexander Afenyo-Markin, MP for Effutu went to court in a spirited effort to stop the contract.
Not even a ruling by His Lordship Justice K.A. Okwabi on August 31, 2015 dismissing Afenyo-Markin’s injunction application deterred the NPP from continuing with further legal actions in a bid to scuttle the West Blue Contract. I must add that these NPP-led legal actions are still pending in court, albeit cold cases now.
The NPP continued to fight the West Blue contract in and outside the courts.
On the 16th of May, 2016 — the NPP’s Director of Communications, Nana Akomea issued a statement on what they said was President Mahama’s record of corruption. First on his list was the West Blue Contract. This is what Nana Akomea wrote: “President Mahama told a blatant lie when he said in London that he does not put himself in a position to be bribed as he does not involve himself and his Office in public procurement. As fate will have it, on 12th May, 2015, exactly a year ago to the day he granted the BBC interview, the President, through a letter signed by his Chief of Staff, Julius Debrah, personally and directly instructed the Minister of Finance “to formally engage West Blue Ghana Limited”, without any competitive tender. This was the contract for the implementation of the National Single Window for the inspection of goods at the ports. This contract is estimated to be worth more than $300 million over the next five year. By directing his Minister of Finance to give the contract to a particular company the President, by his own logic, had put himself in a position to be offered and receive bribe.”
The NPP won the 2016 elections and could now act on their opposition to the West Blue Contract.
The NPP Government discovered that the 4th August 2015 West Blue Contract had as a condition precedent to contract effectiveness, a value-for-money audit.
In August 2017, the Akufo-Addo/Bawumia government got Crown Agents to complete the value-for-money audit. The outcome was that the contract did not guarantee value for money. Crown Agents recommended either a cancellation or a termination. (Report attached).
On 21st September 2017, Ports and Customs World Ghana, with links in Dubai, wrote to the Ministry of Finance that it had taken over West Blue and expressed readiness to renegotiate the West Blue contract. (Letter attached).
On October 2, 2017, West Blue also wrote to the Ministry of Finance indicating that they had been taken over by Ports and Customs World. (Letter attached).
The Government of Ghana wrote to Ports and Customs World on 25th January, 2018 on the basis of Crown Agent’s value-for-money audit, revising the fees under the contract downwards from 0.35% FoB to 0.28% FoB and bringing forward the termination date from December 2020 to December 2018. (Letter duly attached).
Ports and Customs World/West Blue, per a letter dated January 30, 2018 accepted these reduced terms and new contract termination date. (Letter attached).
On March 14, 2019, government entered into a mutual understanding with West Blue to hold the fort by delivering services on the reduced terms until government replaces them.
