[2005]DLSC17829 • January 26, 2005 • Supreme Court •
FAROE ATLANTIC CO. LTD vs. THE ATTORNEY GENERAL
The Respondents, a UK company, entered into a Power Purchase Agreement (PPA) with the Government of Ghana for supply of electric power. The Bank of Ghana guaranteed payments under the PPA. The Ministry of Finance directed issuance of the guarantee without obtaining Parliamentary approval as required by Article 181(5) of the 1992 Constitution. The Respondents sued the Attorney General for specific performance and damages for breach of the PPA. The High Court granted summary judgment against the Government, which was not appealed. Subsequently, damages were assessed and awarded to the Respondents. The Government challenged the award on constitutional grounds, arguing the PPA was void for lack of Parliamentary approval.
read moreJUDGMENT Sophia A. B. Akuffo, JSC I have had the opportunity to read beforehand the erudite opinions about to be read by my learned brothers Drs. Twum and Date-Bah and I agree with their respective analyses of the legal and constitutional issues arising from this appeal, as well as their conclusions. I however, wish to make a few observations on the sicI applicability to and effect of Article 181 (5) on this matter. In a letter dated 13th July 1998 from the Deputy Governor of the Bank of Ghana to the Minister of Finance, (exhibit AM3 attached to the Attorney General's affidavit in opposition to the Motion for Summary Judgment), the Bank wrote as follows:— "As you are aware, the Bank has, at your request and in view of the emergency power situation, guaranteed the payments in respect of a) the Power Purchase Agreement dated 10th April, 1998 in favour of Aggreko UK Limited, b) the Power Purchase Agreement dated 24th April 1998 in favour of Faroe Atlantic Company Limited o.....