Another Multimillion Dollar Judgment Debt Looms

CedisIn spite of the ongoing judgment debt tussle between the government of Ghana and the Bankswitch Ghana Limited, an IT firm, the nation may once again find itself in another multimillion judgment debt case if it cancels Ghana Community Network Services Limited (GCNET) contract.

The GCNET, which operates an electronic system for processing trade and customs documents at Ghana’s ports, has warned the Ghana government over the possible breach of its service contract and if it goes ahead to sign a new Single Window (SW) agreement with West Blue Ghana Limited.
The management of the GCNET sensed danger that their contract was going to be terminated for the single window model, which reduces the cost of doing business at the country’s ports.

The facility, according to proponents, also provides an unparalleled opportunity for traders to lodge their documents, including certificates of origin, invoices, customs declarations and import/export permits at a single location (electronically) to be accessed by all regulatory and trade agencies, instead of traders sending copies of the same documents to different agencies.

Ghana’s Minister of Trade and Industry, Dr. Ekwow Spio-Garbrah, was reported to have asked five DICs with the capacity to contribute $35 million each, towards the repaying of the government’s GHc197 million judgment debt after it cancelled Bankswitch’s contract in 2010.

In a letter dated11th June, 2015, and signed by the Executive Chairman of GCNet, Dr. Nortey K. Omaboe and addressed to the Minister of Trade and Industry, drew the government’s attention to a contract the two parties had signed and which could be breached if the government went ahead with its plans to sign a new agreement with West Blue Ghana Limited.

Part of the letter stated: “As you are aware, under the provisions of the Service Agreement, executed between the government and GCNet, the government, as part of its obligations granted ‘GCNet exclusive rights to provide the services’, among which was the development and deployment of a TradeNet.”

The GCNet had been made aware of the consideration by the government to implement a “National Single Window Project” and indicated that “GCNet is already mandated to implement a Single Window in Ghana, which obligation it has been pursuing in accordance with the terms of the agreement.”

The letter, which was copied to the Chief of Staff, the Minister of Finance and the Attorney-General, appear to be a response to a letter from the Chief of Staff to the Minister of Finance to engage West Blue Ghana Limited in implementing a “National Single Window and Risk Management System project”.

The Chief of Staff’s letter, dated May 12, 2015, directed the Minister of Finance “to formally engage West Blue Limited to render services such as software implementation and support activities to the Ghana Revenue Authority (GRA) and related agencies for takeover of the functions of the DICs on September 1, 2015; conduct needs/GAP Analysis for the implementation of the National Single Window and implement the National Single Window Blue Print, following the needs/GAP Analysis”.

The Chief of Staff asked the Minister of Finance to “take the necessary steps to secure the Public Procurement’s approval in order to engage West Blue on Single Source Basis.”

The GCNET reminded the government of the agreement signed between the two parties in August 2013 “… to deepen the Single Window concept that was being implemented as an integral part of the TradeNet”.

It said, following the strides that GCNET had made towards the implementation of the Single Window, Ghana was one of the first countries to be listed by the UN Centre for Trade Facilitation (UNCEFACT) as having deployed a Single Window.

According to GCNet, Ghana already had a SW system through the GCNET that “enables parties involved in trade and transport to lodge standardized information through a single entry point…”

The GCNET said the facilities it had deployed to justify its position that Ghana already had a SW system in place, including the deployment of a Unique Consignment Reference (UCR); the connection of almost all state agencies into the system and the electronic issuance of Certificates of Origin by the Ghana National Chamber of Commerce and Industry (GNCCI).
African Eye News.com

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