The Attorney General and Minister for Justice, Godfred Yeboah Dame, has reiterated President Akufo-Addo’s claim that his office saved Ghana from paying over GH¢10 trillion in judgment debts.
During his State of the Nation Address in Parliament on Tuesday, February 27, 2024, President Akufo-Addo commended Attorney General Godfred Yeboah Dame for effectively continuing the tradition of contesting every civil litigation against the state, thereby avoiding numerous judgment debts that were previously awarded against the state.
“The Office, as a result, has saved the country over GH¢10 trillion,” he disclosed and attracted jeers from some Members of Parliament.
Mr. Dame revealed that the President’s mention of GH¢10 trillion was actually an understatement, as his office had saved the country approximately GH¢15 trillion in judgment debts claimed by various entities against the government.
Mr. Dame presented evidence to illustrate how his office had saved the country from substantial judgment debts. He highlighted an instance where a garnishee order signed by Justice Emmanuel K. Mensah awarded a judgment debt of over GH¢10 trillion against the state in favor of African Automobile Limited.
This debt, accrued between 2009 and 2011, initially amounted to just over GH¢900,000 but grew to over GH¢10 trillion due to compound interest components.
The Attorney General’s office contested this judgment debt, citing fraud and misrepresentation in the Court of Appeal’s decision. This case was a key factor in the introduction of a bill to abolish compound interests in government contracts, ensuring that all agreements are based on simple interest.
Another case involved a claim of over GH¢500 billion by African Automobile Limited against the Accra Metropolitan Assembly and the Attorney General, seeking a total judgment debt of GH¢582,001,748,751.00 against the state. Through legal intervention, the Attorney General successfully reversed garnishee orders on bank accounts and had many cases dismissed.
Additionally, the Attorney General successfully handled a judgment debt claim by China Jilin International Economic and Technical Corporation against the Ministry of Roads and Transport and the Attorney General, which initially totaled GH¢352,626,144.41 and $988,294,313. These claims were reversed or significantly reduced.
Furthermore, in the NDK Financial Services case, the Attorney General saved the country from paying GH¢1,297,985,310.26 as outstanding judgment debt, reducing the amount to GH¢14,689.75 based on the Supreme Court’s judgment.
In international arbitrations, the Attorney General also saved the country $300 million, $60 million, and $15.7 million, respectively.
Considering these cases collectively, Mr. Dame believed he was justified in informing the President that his office had saved the nation over GH¢10 trillion in judgment debts. He emphasized that the issuance of judgment debts had become a means of exploiting the state, leading to his proposal to abolish compound interest in state contracts.