The Social Security and National Insurance Trust (SSNIT) has withdrawn its lawsuit against the brother of the former President Mahama whose construction company had been sued over the unpaid contribution of employees. 

The business man was dragged for failure to pay the contribution of employees to the tune of GHS1million for default on the payment and penalty arising from the default.

Background

SSNIT had dragged the President's brother to court after his company failed to honor an agreed payment plan.

The payment plan with SSNIT was to settle GHc1,056,464.06 in 12 monthly instalments from February 2017 ending in January 2018.

E&P  was to pay the first instalment in February 2017. But it says it missed the payment date by two days. Nonetheless, the company says it has settled all the debt in three months.

This did not stop SSNIT from dragging the company to court over the payment.

SSNIT says E&P breached National Pensions Act, 2008 (Act 766), and the National Pensions (Amendment) Act 2014 (Act 883) when it failed to pay employee contributions.

At a hearing in a specialised SSNIT Court in Accra last week, the lawyers for E&P told the magistrate Afua G. Sackey that they were under “the impression that once that has been done, there will be no legal action’’.

Ibrahim Mahama was, however, absent when the case was called two weeks ago. The judge ordered the businessman to show up in court when the case is re-called May 13, 2017.

Mahama appears in court

Showing up for the first time in court on Saturday, Mr. Mahama pleaded not guilty to the charge.

His lawyers led by Nancy Amartefio asked the court to discharge the businessman, Engineers and planners and the three others because the company had settled the amount and made advance payments for other months as well.

She said the payments were made prior to the first court hearing on April 29.

The lawyer for the Trust, Leena Boakye however disagreed. She told the court the payments were made on April 28 while the summons was issued to the accused persons on April 13.

She then informed the court she had instructions from her superiors to withdraw the suit.