AG proposes out of court settlement over Ghana Telecom Sale

Mergers, Acquisitions and Financial Results

The court action by Prof. Agyeman Badu Akosah, a former Convention People’s Party (CPP) presidential hopeful and five others, against the Government of Ghana for the sale of 70 percent shares of Ghana Telecom to UK’s telecom giant, Vodafone International, seems to have come to standstill as the Attorney General Department has proposed a possible out-of-court settlement.

This revelation came to light when Bright Akwetey, counsel for the plaintiffs, announced to an Accra Commercial Court that he was not prepared to move a motion before the court, as there were some discussions going on between the plaintiffs and the AG department on the matter.

According to him, the plaintiffs and the AG have a common course in the current circumstances of the matter and therefore prayed the court to adjourn the matter for sometime for them to discuss the issue and see if certain agreements could be arrived at.

Mr. Akwetey indicated that both parties, after deliberations, would bring the court feedbacks on the matter.

A representative from the AG’s Department, Mrs. P.J Naana Dontoh, Principal State Attorney and Counsel for Vodafone, Festus Kayi, associated themselves with submission by Mr. Akwetey when asked about their comments on the submission by the trial judge.

The response made the judge adjourn the matter to June 29, 2009.

Prof Akosah, Kossi Dede, Dr. Nii Moi Thompson, Naa Kordai Asiedu, Rodaline Imoru Ayarna and Kwame Jantua, as concerned citizens, are suing the government over the sale of 70% of the shares state-owned telecom to Vodafone.

The six are asking the court to dissolve the enlarged Ghana Telecom, which was created to effect the sale, because no such company exists and are also praying the court to restore the fiber optic network to the VRA and an order for a true and faithful re-valuation of assets of GT.

After a pre-trial of the case on December 23, 2008, a seven-point critical issue was raised and agreed on by the three parties.

The issues to be determined by the court include whether the court had jurisdiction to hear the matter, whether or not the plaintiffs have any locus stand in the matter, and whether or not Articles 6(1) (6), 10 (7), 12 and 13 (21) of the Sales Agreement contravenes the country's constitution.

Daily Guide Ghana