The NPP Minority in Parliament has warned of looming judgment debts with respect to government’s cancellation of contracts with service providers under the GYEEDA programme.

Government announced on Tuesday that it was abrogating some contracts under GYEEDA including Rlg Communication's training module - Asongtaba Cottage Industry & Exchange Programme - and the Better Ghana Management Services Limited.  

The action follows Joy News’ investigations that unveiled rot within the programme. Investigations revealed that most of them did not meet value for money.

But the NPP has branded the move as a mere political gimmick warning, it could saddle government with more judgment debts.

Member of Parliament for Efutu and member of the Finance Committee of Parliament, Alexander Kwamena Afenyo Markin told Joy FM’s Top Story that if the contracts were properly executed, government on its own cannot use its powers to abrogate them.

He also wants persons, who authorised the contracts and those who executed the contracts, sanctioned for their roles if it turns out that due diligence was not followed in awarding the various contracts.

Mr. Afenyo-Markin has therefore warned government to go “beyond media face-saving” and take pragmatic measures founded in law to fight corruption.

A legal practitioner, Sampson Lardi Ayenini is also warning of series of legal actions against government following the cancellation of the contracts.

He therefore argued that the detection of potential lack of value for money does not automatically work to legitimize unilateral termination of a contract.

However, he noted that both parties can mutually agree to terms to discharge them of the duties and obligations.
“Government may have discovered some of these contracts are tainted with fraud, have terms that are illegal or against public policy or that they contain unconscionable terms or most probably that these parties to the contracts have breach specific terms which warrant or give rise to termination, and such breaches may include, as we read the GYEEDA report non performance.

“... but one certainly must get to know a lot more of the details regarding the grounds for termination and a response from the other parties regarding their interpretation of the clauses or grounds used to terminate these contracts, to be able to tell if government by the act is not opening itself to series of suits, which could result in damages etc for wrongfully repudiating these contracts.”

On his part, Deputy Minister of Information, Felix Ofosu Kwakye told Top Story, “due diligence was followed all the way” prior to the cancellation of the contracts.

He noted that following the president’s directive for auditing contracts under GYEEDA, the Attorney General has been engaging the service providers and stakeholders to ensure that no law is offended.

Mr. Ofosu Kwakye insisted that persons found to have engaged in any questionable deal under GYEEDA, “would be dealt with in accordance with the law”.

The Deputy Minister suspects the NPP is wading into the matter to make political capital out of it.

He said so far over 30 people have been interviewed on various GYEEDA contracts. Dockets have also been built as the appropriate authority prepares to go to court to retrieve any monies service providers owed government.