‘Ruling in Waterville case could scare international businesses ‘

Executive Director of the Danquah Institute, Gabby Asare Otchere-Darko, has said Martin Amidu’s triumph in court on Friday could scare away foreign businesses.

The Supreme Court ordered Waterville Holdings Ltd. to return to the state about €47 million it obtained illegally arising out of claims it brought against the state in 2009.

Former Attorney General (AG) Martin Amidu went to court seeking reliefs for monies paid to Waterville to be declared illegal, and an order for same to be returned to the state.

But speaking on Joy FM's news analysis programme, Newsfile on Saturday, Gabby Otchere-Darko stated the case in which the Judges granted 6 of the 15 reliefs sought by the former AG could have serious implications for the nation's business activities with the international community.

“What this case has done is to basically frighten international businesses when it comes to Ghana,” he said.

He said with the ruling, government can do something unconstitutional knowing it would be considered illegal once the contract has been performed.

According to him, it was “scandalous” how Parliament has been negligent in bringing clarity to article 181 - with respect to the difference between foreign loans and foreign economic transactions.

The article stipulates in part that loans entered into by government must be approved by Parliament.

According to the Danquah Institute boss, the court in some instances has allowed payments to be made to foreign parties who have delivered on the terms of contract entered into with government, even though the contracts were unconstitutional.

With the ruling in favour of Martin Amidu on Friday, the Court has further tightened the window allowing contracts entered into by government wrongly with foreign companies to obtain restitution.

“What parliament must do is to bring the necessary laws to allow a clear differentiation between loans and economic transactions,” he emphasised.