Ghana’s Deputy Attorney General, Dr. Justice Srem-Sai, has warned that a hasty cancellation of the AKSA power contract could trigger a substantial judgment debt against the state. This caution comes amidst public calls to terminate the agreement after a former Goldman Sachs banker received a bribery conviction in the United States.
Dr. Srem-Sai explained that simply cancelling the contract due to an individual’s conviction for bribery lacks a proper legal basis. He stressed that the government must first conduct a thorough review of the agreement. This review will determine if the bribery conviction provides sufficient legal grounds to invalidate the contract, thereby protecting Ghana from financial penalties.
This situation highlights Ghana's ongoing challenges with public contracts and potential financial liabilities from past agreements. The country has faced significant judgment debts in recent years, impacting its public finances. Previous cases, such as the GHS 134 million paid in 2020, underscore the financial risks of contract disputes.
“The law doesn't work that way. You can take a decision which will become a judgment-debt issue,” Dr. Srem-Sai told JoyNews. He further clarified that bribery and fraud are distinct legal concepts. A contract procured through fraud could be invalidated, but this requires clear evidence established through proper investigations.
The immediate implication is that the government will not rush to cancel the AKSA contract despite public pressure. Decision-makers will await the outcome of ongoing investigations. The Economic and Organised Crime Office (EOCO) is currently leading Ghana’s local probe into the matter. The Attorney General’s Office is also coordinating with US authorities on the case.
Dr. Srem-Sai reiterated that a comprehensive legal assessment is crucial before any action. He stated that investigators must establish the relevant facts before advising the government on the contract’s future. This careful approach aims to prevent Ghana from incurring avoidable financial losses. The government’s response will be closely watched by civil society groups and financial markets concerned about public expenditure.
This incident underscores the importance of due diligence in government contracts. It also highlights the legal complexities involved when international convictions impact local agreements. Ghana’s fiscal stability depends on avoiding unnecessary financial burdens like judgment debts. The outcome of this review will set a precedent for handling similar situations in the future. It will also influence how the government manages public expectations regarding contract terminations.