The International Centre for Settlement of Investment Disputes (ICSID) in a landmark ruling has granted an award in favour of Ghana over an arbitration dispute which was instituted against it in September of 2007 by a German investment company, Gustav F.W. Hamester. A statement by the Office of Attorney General and Minister of Justice, hailing the decision, said the ruling by the ICSID in favour of Ghana is a strong pointer to current and future investors in Ghana that even though they are always welcome to help accelerate the development agenda of the country, investor misconduct will not be tolerated. In a background to the decision, the statement explained that Gustav F.W. Hamester, a partner of COCOBOD in the West African Mills Company Ltd (WAMCO) had management control of WAMCO and exploited this advantage to dictate prices at which they were prepared to pay for cocoa beans supplied to the factory by COCOBOD. It also dictated the price to pay for products of WAMCO they took over. As a result of these poor business practices, WAMCO, a cocoa processing company in Ghana, owed COCOBOD so much for cocoa beans supplied. Gustav Hamester’s questionable business practices also included over invoicing of the cost of the equipment and machinery bought on behalf of WAMCO to increase the value of their shareholding in WAMCO. When COCOBOD realised the fraudulent activities of Hamester, it took measures to remedy the situation and called for a realistic pricing regime for cocoa sold to WAMCO and also to get WAMCO to pay for cocoa beans sold to it. Hamester resisted the processes but finally signed a price agreement by which from 2003 all categories of cocoa beans sold to the factory shall be on FOB. Some of the fraudulent business practices of Gustav Hamester, is complained to the Ghana Police to institute criminal investigations into the affairs of WAMCO during which one of its representatives became the subject of criminal investigations. During the investigations Gustav Hamester abandoned their management role and the Joint Venture Agreement and construed COCOBOD’s efforts at ensuring a fair business relationship as governmental interference. It lodged a complaint with the International Centre for Settlement of Investment Disputes (ICSID) and claimed damages for breaches of the joint venture agreement by Ghana. Gustav Hamester claimed that as a result of the alleged breaches it suffered losses in excess of One Hundred Million Euros (€100 Million) and claimed compensation for losses due to non-supply of cocoa beans in 2002 in the total sum of (€33,045,03.29, loss of profit from 2003 – 2008 in the sum of €27,984,000.00 and loss of its share of WAMCO’S profits from 2002 to 2008 estimated at €18.3 Million. The Arbitration Tribunal though concluded hearings in July, 2009 in London took one year to render the Award and finally on 18th June, 2010 declared that the acts of COCOBOD relating to the 2001 Price Agreement, are not attributable to the Republic of Ghana and that the acts of the Republic of Ghana relating to the Police Investigations do not amount to a violation of the Bilateral Investment Treaty. Myjoyonline.com/Ghana