You are here: Home → News → 2003 12 07 → Article 47883

General News of Sunday, 7 December 2003

Source: --

NCS Shutdown: WHAT ARE THE ISSUES AT STAKE

« Prev

Next »

Comments (0)

Listen to Article

NCS vs. UTC Estates

  • Who are the principal characters? : Sam Jonah, Nii Quaynor

  • Who is Sam Jonah?
    The CEO of AGC is believed to be the current largest shareholder and Chairman of its board.

  • Who is Nii Quaynor?
    A Well-Known computer scientist, he is the largest shareholder and chairman of NCS board.

  • What is the relationship between Sam Jonah and Nii Quaynor?
    They are both Santaclausians from Adisadel College and know each other well. Nii Quaynor is one year senior to Sam Jonah in Adisadel. They are not business partners.

  • What is the land dispute between NCS & UTC estates about?
    NCS was tenant of UTC estates from March 1993 till February 1996 when the lease between NCS and UTC expired. Meanwhile, the lease agreement between UTC and Lands Commission of Ghana was due to expire in March 1996. Aware of the situation at the Lands Commission, NCS asked UTC for evidence of renewed lease from the Lands Commission when UTC proposed to sell the property to NCS prior to the expiry of the lease. UTC subsequently halted discussions on the sale of the land and went to court to claim rent and the property.

  • Why was evidence of a renewed head lease important to NCS?
    It is a required practice in law to do a search prior to acquiring land in order to avoid having to pay twice for the same property. During this period there was a claim of ownership of the property by Sam Jonah personally in a verbal conversation with the Executive Chairman of NCS. He was shown a search indicating the UTC lease had expired. There was also a claim from Mr. William Ofori by letter acting as agent of a client. Last but not the least was claims made by the Osu stool of Accra of ownership by public notice of several properties in the Ridge area including the property in question. These, NCS felt were enough signs for due diligence in terms of proper documentation.

  • When did UTC estates become Sam Jonah's?
    Sam Jonah made his claim of ownership of the property (between late 1996 and early 1997?). During court proceedings however, UTC Estates claimed it had received a renewed lease and that a Ms Finiba Arthur, bought the land from UTC Estates whose chairman was Sam Jonah.

  • What was the judgement?
    The judgement was for NCS to pay rent arrears to UTC at the rate of $28,000 per annum plus interest at CAL merchant rates plus 5%. The judgement itself was vague on the interest rate.

  • What attempt was made by NCS to settle the issue amicably?
    NCS approached several intermediaries including the Chairman of the Council of State to negotiate while the two lawyers also worked on settlement. The Chairman of the Council of State reached an agreement between Sam Jonah and Nii Quaynor at a breakfast meeting. The terms were for NCS to pay the due rent and to purchase the property at $500,000. Although NCS preferred to pay the arrears to the Court, the mediator convinced NCS to pay directly to UTC Estates as good will in the negotiations.

  • Did NCS pay any money directly to UTC estates after March 1996?
    NCS paid rent totaling $207,000, being rent from April 1996 till May 2003 and 5% pa simple interest on amount due per year.

  • Why did negotiations break down?
    The negotiations included paying the rent arrears to UTC Estates who was determined by the court as the landlord and also to purchase the property. Mr. Jonah acting as agent of Ms Finiba Arthur, insisted NCS settle all the rent arrears first before discussion of the sale which was priced at $500,000. UTC estates had meanwhile also demanded 18 % interest p.a. compounded on the rent. This NCS felt was unrealistic since terms of payment were set in US dollars. After UTC had taken the $207,000 payment, their lawyers, acting on the orders of agent Jonah refused to sell the property in a letter from KUDJAWU & CO. KUDJAWU & CO are the lawyers for UTC Estates and Finiba Arthur. The letter was dated April 22, 2003.

  • Why is it difficult for NCS to move?
    Firstly, it’s difficult to find an appropriate location for the communications facilities. Secondly, it is a monumental task to migrate such out door structures such as 7m antenna and towers. Lastly, in order to migrate online facilities would require building a new facility first before swinging the traffic from the old infrastructure to the new one..

  • Who shut down the NCS head office?
    UTC Estates through KUDJAWU & CO. obtained bailiffs of the court including 3 bailiffs and 7 uniformed police officers. The bailiffs arrived at the NCS head office around 2 p.m Nonetheless, a motion of stay of execution was filed and the ejection stalled. The property still remains closed however.

  • What is the impact of the shut down on the nation of Ghana? (add loss of tax revenue to the state)

  • Are there any other related lawsuits?
    A lawsuit has been filed by the GaDangme council acting on behalf of the Osu stool against the Minister of Justice, the Lands Commission, UTC Estates, Finiba Arthur and NCS. The suit claims the lease renewal is a forgery as the consent of the Osu stool was not granted and seeks recovery of the said property.

  • What are NCS plans to move?
    NCS has purchased a property from the Lands Commission and awaiting right of entry to the new property. A government official currently occupies the property who is expected to move out shortly.

  • Did Sam Jonah or UTC estates know of NCS plan to move?
    The mediator informed Sam Jonah that NCS had a property they planned to move to.

    Hope this will give the public more understanding of what is going on.