An international arbitration tribunal in London has rejected the GH¢4 billion claim made by Ghana Community Network Services Limited (GCNet) against the Republic of Ghana.
In a detailed 202-page ruling dated November 18, 2024, the tribunal ruled in Ghana’s favour, ordering GCNet to pay $2,185,983.21 in legal fees.
The awarded amount includes $1,744,050.42 for legal representation and $441,932.79 for the costs of Ghana’s expert witness.
The total will accrue interest at the USD SOFR + 1% rate from 30 days after the award until payment is made.
GCNet, represented by Quinn Emanuel Urquhart & Sullivan, LLP, alongside Ghanaian firms Beyou and Co. and ENS Africa, contested the termination of a Service Agreement by the Government of Ghana.
The agreement, which had been in effect since 2002, granted GCNet exclusive rights to develop and manage an electronic system for processing customs payments and trade documents at Ghana’s ports. Despite several extensions, the agreement was terminated by the NPP administration in April 2020 following a value-for-money assessment.
GCNet sought compensation amounting to GH¢3.3 billion for wrongful termination and other alleged breaches, including GH¢2.1 billion for termination and GH¢1.19 billion for breaches related to government exemptions and discounts for importers. The company also sought pre-award interest and legal fees.
Represented by the Attorney-General’s office led by Godfred Yeboah Dame, Ghana argued that the agreement had a specific framework for assessing GCNet’s entitlements, limiting compensation to $6 million.
The tribunal upheld Ghana’s position, ruling that the termination was valid and that GCNet had waived its right to claim damages for exemptions and discounts.
The tribunal awarded GCNet $5.4 million for early termination but found that GCNet was the unsuccessful party, making it liable for Ghana’s legal costs. This ruling is a significant win for Ghana, saving the nation billions of cedis.