“Put ceiling on judgment debts allowed,” Oteng-Gyasi urges Parliament

Earlier in July 2019, the Finance Minister, Ken Ofori-Atta disclosed that total receipts issued as judgment debts to various parties totaled GH¢283 million

Is allowance instantly strangers applauded

A private industrialist, Mr. Tony Oteng-Gyasi has advocated for legislation to clamp down on the judgment debts that are claimed by contractors and the government when there is a breach of a public sector contract or agreement.

According to Graphic Online, Mr. Oteng-Gyasi made these remarks at the launch of a book on Company Law, titled “Modern principles of Company Law in Ghana,” authored by Mr. Ferdinand Adadzi, a partner of AB & David Law.

He observed that legislation that places a cap on damages in public sector contracts could prove to be the surest way of dealing with judgment debts.

“You can put a term in the contract which says effectively that this is the maximum an aggrieved party can claim. It does not have to be a figure. There are formulae for that and we can include that in the law,” Mr. Oteng-Gyasi said.

Mr. Oteng-Gyasi further noted that regardless of concerns that a call for legislation may prove to be drastic, it remains the best weapon available to the country with which the huge expenses accrued as judgment debts could be effectively curtailed.

Recall that the state recently escaped payment of GH¢1.2 billion in judgment debt after the Supreme Court ruled against NDK Financial Services over its claims to outstanding balances and interests on a judgment debt it was awarded some years ago.

The Supreme Court had held that the financial institution was only entitled to GH¢14,699.74.

Earlier in July 2019, the Finance Minister, Ken Ofori-Atta disclosed that total receipts issued as judgment debts to various parties totaled GH¢283 million.