Chinese company StarTimes about to sue Ghana Government for breech of contract Damages of $200 m Dollars
Chinese company StarTimes has claimed damages of $200 million for breaching contract by the government of Ghana. According to media sources the Chinese company successfully won the contract for providing and installing reliable, energy efficient and cost effective Digital Television Network solution and has initiated arbitrary proceedings in London’s International Commercial Court against the government of Ghana.
Media sources indicate that after termination of prior contract,
has circulated a memo to the cabinet for reconsidering awarding the contract to another company known as Knet
Surprisingly, approximately the entire cabinet expressed its unwillingness and disapproval for unfair cancellation of contract which was initially approved by same cabinet.
After Contract approval by cabinet a $95 million loan was awaiting for parliamentary approval from EXIM Bank in China and loan was later signed off between the two countries by April 2015, and a memo by finance Minister was ready to be set in front of Parliament for approval.
But instead of memo being sent for approval to Parliament, The communications Minister strangely went for executive approval and started unfair procedures to award the contract to Knet, a company with no prior relevant experience regarding Digital projects.
It is increasingly rumored and believed a conflict of interest as the intention before providing contract unfairly to Knet is due to familiarity with colleague Deputy Communications Minister, Ato Sarpong of Communications Minister. Ato Sarpong was chief Operating Officer at Knet just before his appointment as Deputy Communications Minister.
Cabinet has rejected the awarding of Contract to Knet saying that they will not approve a contract with executive approval as executives are not assumed to provide approval of contracts
StarTimes has started suit efforts against Ghana government and have intended to engage Bentsi-Enchill, Letsa & Ankomah and DLA Piper as its local and global solicitors respectively and are seen confident for their claim of damages amounting $200.
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