Bankswitch: Finance Ministry reveals no decision taken on how to pay debt

The Finance Ministry has revealed that a decision on how to settle the controversial GHC197 million judgment debt to IT firm, Bankswitch, have 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 letters to Destination Inspection Companies (DICs).

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?

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