Tony Lithur explains Calf Cocoa International judgement debt payment

A private legal practitioner, Mr Tony Lithur, Tuesday appeared before the Commission on Judgement Debt to answer questions on how Calf Cocoa International Ghana Limited secured a judgement debt of $4,150,127.50 in 2009.

Calf Cocoa, which was a joint venture company between Caridem Development Ghana Limited and the Chinese International Company for Agriculture and Fisheries, went to court following the refusal of the Ministry of Finance and Economic Planning to release a working capital of $1.8 million to it.

Mr Lithur, who was the counsel for Calf Cocoa International Ghana Limited  in that case, told the commission the $1.8 million was granted to Caridem and the Chinese company by the Chinese government to go into cocoa processing.

However, he said, the Ministry of Finance declined to give out the money to Calf Cocoa to start its operations after it had set up the company in 2003.

Mr Lithur, who is a management partner of Lithur, Brew and Co., said Calf then decided to take the matter to court.

He said the Commercial Division of the Fast Track High Court gave a judgement on March 8, 2008, asking the state to pay Calf the undisbursed amount of $1.8 million.

The court further awarded damage of $1.75 million, accumulated interest of $600, 127. 65 and GH¢5,000 costs against the state, which brought the total judgement debt to $4,150,127.50.

Explanations

Mr Lithur said the $1.8 million was part of a complete loan facility of $8,750,000 that the Chinese government had earmarked to support the companies.

He said Calf Cocoa believed that there was improper motive behind the refusal of the Ministry of Finance to release the amount to it.

Mr Lithur said the suit was preceded by a letter he wrote to the Attorney General for the release of the funds.

He said the writ which was filed by Calf Cocoa to seek an order from the court to compel the Ministry of Finance to release the amount was dated September 8, 2005.

Other cases

The Chief Valuer of the Lands Commission, Mr Kwesi Bentsi Enchill, also appeared before the commission to answer questions regarding the payment of GH¢552,147  compensation in 2008 for 18 shops affected by the Asafo Interchange and pedestrian walkways in Kumasi.

He told the commission he did not know anything about the payment of that compensation because the Lands Commission was not a party to that suit.