Abrogation Of Contract Under Ghana-Spanish Protocol

Kwadwo Mpiani The Cause


Following the irrational decision on the part of Kufuor’s Chief of Staff & Minister of Presidential Affairs, Mr. Kwadwo O. Mpiani, to arbitrarily abrogate a contract between a Spanish company, ISOFOTON S A and the Government of Ghana (GOG) under the second Ghana-Spanish Protocol, attracted a strong worded sentence from the Government of Spain, the financiers of the project.
As a result of Mr. Kwadwo Mpiani’s action, the Ministry of Industry, Tourism and Commerce (Ministerio De Industria, Tourism Y Comercio) of the Spanish Government, on 21st April, 2006 wrote to the John Agyekum Kufuor administration, not only to register its displeasure about the way and manner the selection process has been bastardized, but totally expressed its disappointment and disapproval.

The letter signed by the aforementioned Ministry’s Chief Director, Oscar Via Ozalla to the late Honnourable Kwadwo Baah-Wiredu, then Minister of Finance and Economic Planning reads:
“Further to my letter of March 21st, 2006, it is my pleasure to inform you that we have initiated the procedure of approval for the project proposed by the Ministry of Fisheries “Construction of cold stores and ice making plants for the artisanal fishing sub-sector” with the company Ramon Vizcaino”
“With regards to the rest of the proposal, we are still waiting for the project details before any decision from our part is take”
“I would like, Mr. Minister, to express our surprise and concern with the selection of companies system. We both agree that this selection must be done by the Ghanaian authorities. We have received some complaints from companies which had signed contracts with the Ghanaian sectorial ministries that are not included in your list without providing us any information or justification.
”I am sure that you agree with me that this is a very unpleasant situation since we are financing these projects. Moreover, this is in sharp contrast with our previous Protocol, which did work quite smoothly”, the Spanish government condemns Kufuor and his NPP government
The letter also warns the Kufuor government not to deal with any imposter as a representative of the Spanish government apart from the Ambassador and other recognized agencies by the Government of Spain.
”As you are aware, and in order to avoid any misunderstanding, the Spanish government has no special representative for this Financial Protocol in Ghana. Only our Ambassador in Accra and our Commercial Counselor with residence in Lagos are the representatives of the Spanish government in Accra”
“If someone else is trying to take part in the decision-making process of the Financial Protocol in Ghana, is simply unacceptable and, above all, Illegal. In this context, we reserve the right to take legal actions ib Spain against those false representatives of the Spanish government”.
“I hope, Minister, this clarification would help in order to in order to introduce more transparency in this exercise”, the letter caution the Kufuor administration.
“I will kindly request from you to give us some details of the situation of projects which have contracts signed already”.
The 21st April, 2006 letter was as a result of how arbitrarily Kwadwo Mpiani truncated a contract between the Government of Ghana and a Spanish company, I ISOTOFON S.A.
We will like to reproduce our earlier publication on how Kwadwo Mpiani defies legal advisor and warnings to bring huge debt to the state.




Regardless Of Joe Ghartey’s Caution
Kwadwo Mpiani Caused
Financial Loss Of
US$ 1.3million
Investigative Desk Report
What goes round certainly comes round; and that is why regardless of efforts by some appointees of the erstwhile Kufuor administration to escape justice, they will still be made to account for their stewardship.
Acting virtually as the de facto Vice President under the Kufuor-led-NPP regime, Mr. Kwadwo O. Mpiani, Chief of Staff & Minister of Presidential Affairs had ignored legal advice offered him, and as a result, caused to Ghana, a financial loss to the tune of US$1.3million, when he conceitedly abrogated a contract between the Ministry of Food and Agriculture (MOFA) and a company called ISOTOFON S.A. under the second Ghana-Spanish Protocol.
Dated 21 March, 2006, Mr. Kwadwo Okyere Mpiani, then Chief of Staff & Minister of Presidential Affairs under President John Agyekum Kufuor, wrote a letter to the Minister of Food and Agriculture, recommending a company to execute a project under the second Ghana-Spanish Protocol, despite all efforts made by the Minister to get him rescinds his decision.
On behalf of the Minister, Mr. Clement Eledi, his deputy in-charge of crops, on April 4, 2006, wrote to Mr. Kwadwo Mpiani to explain why it is impossible for the Ministry to deal with the company he has recommended.
“I am directed by the Honourable Minister for Food and Agriculture to draw your attention to the fact that, the company recommended for the execution of the project in the Ministry is unknown to the Ministry, and the Ministry has never dealt with that company; and therefore, cannot guarantee that the said company is in a position to execute the projects”.
“Throughout the discussion at the Ministry of Finance and Economic Planning, Honourable Ministers were made to understand that, for an effective and speedy execution of the projects under the protocol, Ministers were to identify suitable Spanish companies with the requisite technical knowledge to execute the projects”.
“The Ministry of Food and Agriculture, after a diligent search, settled on two companies to execute the projects in the Ministry. The two companies were ISOTOFON S.A. MADRID, SPAIN AND RAESA S.A. OF SPAIN. Whilst ISOTOFON S.A. was to install solar powered pumping and irrigation systems in the sum of €5,000,000 (Five Million Euro), RAESA was to supply irrigation equipment to the tune of €3,000,000 (Three Million Euro)”.
“The Ministry per the Honourable Minister, went further to enter into an agreement with ISOTOFON S.A. on the 22nd September, 2005, after advice from the Attorney-General”, indicating that the Ministry has already settled on ISOTOFON S.A. as one of the companies to work with, but Mr. Kwadwo Mpiani insisted that the contract be truncated.
The letter copied to the Ministry of Finance, then warned: “ It is having regard to all that has transpired that, the Honourable Minister for Food and Agriculture would want to draw your attention to the fact that, change of company at this stage could open up the Ministry and indeed the Government to legal action, especially by ISOTOFON”.
However, the Ministry of Finance and Economic Planning on April 13th, 2007, wrote to the then Attorney-General and Minister for Justice, Mr. Joe Ghartey for legal advice.
In reply to, the letter dated June 4th, 2008, Mr. Joe Ghartey warned government:
“We acknowledge receipt of your letter with reference number GH/SP/BLC/2FP/1205, dated 13th April 2007, with its enclosures. We have studied the documents and the contract between the Ministry of Food and Agriculture (MOFA) and ISOFOTON S.A., under the Second Spanish Protocol executed on 22nd September 2005. MOFA abandoned this contract and subsequently signed another contract with INCATEMA INDEMA, another Spanish company in respect of the same project.
ISOFOTON S.A. has notified this office of its intention to sue on the contract. We have studied your letter and the various documents submitted by your Ministry and MOFA and advise as follows:
There is a breach of a binding contract with ISOFOTON S A and which entitles them to:
1. Special Damages
2. General Damages &
3. Interest at the prevailing bank rate from time of breach till the day of payment.
We further advise that any lawsuit arising out of this matter would be detrimental to the Government. In the consequence, substantial financial burden could be imposed on the Government through this breach.
To avoid a lawsuit by ISOFOTON S. A., you are advised to try and reach an amicable settlement with them on the issue”.
Despite these warnings from the Ministry of Food and Agriculture and Attorney-General, Mr. Joe Ghartey, Mr. Kwadwo Mpiani insisted on abrogating the contract the Ministry entered into with ISOFOTON S.A.
ISOFOTON S.A. unhappy with the rather illegal steps taken by the then Chief of Staff & Minister of Presidential Affairs, Mr. Kwadwo Mpiani went ahead to sue the Ghana government.
On the 26th October, 2010, the High Court of Justice, ruled in favour of ISOFOTON against the Government of Ghana.
“UPON READING the Affidavit of ANANE-AGYEI FORSON of House No.3 Opposite Shaaba Warehouse Parakuo Estate, Dome-Accra, filed on the 22nd day of October, 2010 in support of Motion Ex-Parte praying for an Order for Certificate of Judgment/Order for payment against the State to issue:
AND UPON HEARING OWUSU YEBOAH, ESQ, Counsel for and on behalf of the Plaintiff/Judgment/Creditor herein;
IT IS HEREBY ORDERED that a Certificate be issued containing the Orders made in the Judgment of High Court dated 29th September, 2010 to recover from the Defendant/Judgment/Debtor herein the sum of One Million, three Hundred Thousand United States Dollars (US$1,300,000.00) made up as follows – Case No. BC.24/2009 US$850.00 and Case No. BC.23/2009 as total Judgment Debt in full and final settlement and satisfaction of the Plaintiffs claim herein against the Defendant for losses suffered by the Plaintiff and damages for breach of contract.
GIVEN UNDER MY HAND AND THE SEAL OF THE
HIGH COURT OF JUSTICE, ACCRA, THIS
26TH DAY OF OCTOBER, 2010
(SGD) M.W.K.KWARA)
CHIEF RESGISTRAR.
The Editors Note
From the above empirical evidence, it is only justifiable that Mr. Kwadwo Mpiani be charged for causing financial loss to the State; and we expect that the Economic and Organized Crime Office (EOCO) acts swiftly in this matter in order to ensure that Justice is done.
Even, in the face of all these evidences, gargantuan Martin Amidu claims he has no evidence to go to court, what a disgraceful personality.