General News of Wednesday, 10 October 2012
The application filed by the Attorney General for a stay of execution on a garnishee order issued by an Accra High Court in favour of Isofoton S.A., has been thrown out by the Appeals Court.
The hearing which took place on Wednesday morning was intended to prevent the Spanish company from executing an order to freeze the accounts of the Engineering Department of the Ministry of Agriculture.
The garnishee order was issued on 2nd May 2012 after the ministry defaulted in the payment of an outstanding 1.3 million dollar judgement debt owed Isofoton.
The judgement debt is as a result of the abrogation of a contract with the company by the erstwhile Kufuor administration for the supply and installation of solar powered irrigation systems in rural areas.
Isofoton sued the government over the abrogation of the contract but government then entered into an agreement to pay a settlement fee of $1.3 million. It however defaulted in making the full payment forcing Isofoton to go back to the courts to obtain an order to freeze the accounts of the Engineering Department of the Ministry.
This ostensibly means that government must pay the outstanding amount in order to defreeze the accounts of the department.