GGFCL Sues Govt

 

A subsidiary of Groupe Nduom (GN), Ghana Growth Fund Company Limited (GGFCL), has sued the Government of Ghana, three contractors and others over debts owed it.

 The company, in a suit filed at the Commercial Division of the High Court in Accra on Tuesday, July 9, 2019, said the debt owed it by government had left it in a situation where it was unable to pay investors.

 

So far, the total debts that government contractors owe GGFCL is over GH¢2.2 billion.

 

And Ghana Growth Fund in its first batch of suits is seeking to recover over GH¢19 million.

 

It must be noted that the Company has quietly financed infrastructure projects to the tune of GH¢14 billion over the past 15 years.

 

In one of the suits, GGFC is, among other things, praying the court to help recover the sum of “GH¢4,416,719.37, being the total face value of the accrued but unpaid interim payment certificates due the fourth defendant, (Agyakot Company Limited), under the road contracts.”

 

As part of the reliefs being sought by GGFCL, this suit is also asking for “interest on the said sum of GHC4 416,719.37.”

 

The second suit is praying the court to recover the sum of two million, four hundred thousand, fifteen thousand, five hundred and seventy seven Ghana cedis and eighteen pesewas (GH¢ 2,415,577.18) being the total face value of accrued payment certificates due the fourth defendant (Reggio Company Limited).

 

And in the third suit, GGFC is asking the court for the recovery of GH¢ 13,900,849.73 pesewas due a fourth defendant, AmoahPrempeh Company Limited.

 

The Minister of Finance, the Minister of Roads & Highways and the Attorney General are the 1st, 2nd and 3rd defendants respectively in all the three suits.

 

The company also wants the court to award costs and pay interest on all the amounts and any other additional remedies that the court may deem necessary in all of its three suits.

 

Ghana Growth Fund has given a hint that more suits will follow until they recover all their debts that their clients owe them.

 

The background to the case is that the Ghana Growth Fund Company financed some contractors that have failed to pay back the money owed the company as a result of government’s inability to pay those contractors.

 

This amount has accrued to the tune of GH¢2.2billion. It must be noted that this includes ongoing projects, completed projects and certified ones.  The funds used to finance these projects were mobilised by the Ghana Growth Fund Company from the local market to finance the contracts given to its clients by government.

 

Ghana Growth Fund Company Limited is a private equity and venture capital firm that specialises in investments at all stages of a company’s life-cycle including startups, recapitalisations, leveraged buyouts, management-led buyouts, buy-ins, expansion and development capital, mature stage, strategic minority equity investments, equity private placements, consolidations and build-ups, buy and builds, and growth capital financing.

 

The firm also invests in property-level equity, debt and special situations transactions and businesses. It typically invests in small and medium-sized enterprises in infrastructural development, non-bank financial institutions, information technology, manufacturing among others.

 

 

Story: News DESK

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