The Finance Ministry has revealed that a decision on how to settle the controversial GHC197 million judgment debt to IT firm, Bankswitch, has not been established.

In a statement Tuesday evening, the Finance Ministry explains Cabinet is yet to approve proposals on the best way to settle the judgement debt against the State.

The Trade Ministry said a team has been negotiating resettlement terms with Bankswitch - raising a critical question about the basis for the Trade Minister’s letter to Destination Inspection Companies (DICs) to request their assistance to pay the debt in exchange for contracts.

Trade Minister, Dr Spio-Garbarah

The Trade Minister had written to the six DICs in the country asking them to contribute some 35 million dollars in the payment of the debt in exchange for contracts.

However, the release from the Finance Ministry suggests that the Trade Minister’s letter to the DICs was not warranted.

The letter said after the Netherlands-based Permanent Court of Arbitration's ruling against the state in the Bankswitch case, Government engaged the IT firm to seek ways to pay the Judgment debt.

It said a Government Team, made up of officials from the Attorney-General's Department, the Ministry of Finance and the Ghana Revenue Authority, have been holding meetings with the IT services and solutions firm to negotiate the settlement.

According to the Finance Ministry, although the team has come out with many proposals none have approved by Cabinet.

So if Cabinet is still considering the proposals on how best to pay the Bankswitch judgment debt and a decision is yet to be taken, then how come the trade Minister is already asking Destination Inspection Companies to contribute 35 million dollars to repay the debt in exchange for contracts?

Read the Finance Ministry's statement below.

Government has not concluded contract with Bankswitch Ghana Limited

The attention of the Ministry of Finance has been drawn to media reports on Government of Ghana having concluded a contract with Bankswitch Ghana Limited.

2. The Ministry wishes to emphatically state that this information is not true.

3. After the Permanent Court of Arbitration's ruling against Government of Ghana, which awarded a cost of GHC 197.4m plus a legal cost of US$4.5m against Government, Government engaged Bankswitch Ghana Limited to seek ways, which will be beneficial to Government, to pay the Judgment debt.

4. The Government Team, made up of officials from the Attorney-General's Department, the Ministry of Finance and the Ghana Revenue Authority, has been holding meetings to negotiate the settlement. The Committee has come out with proposals which are yet to be approved by Cabinet.

5. Government will take a decision which will be beneficial to the country while respecting the rule of law. ENDSigned

HON CASSIEL ATO FORSON (MP)

DEPUTY MINISTER (F)

THE NEWS EDITOR