The Accra High Court has ordered the Ghana Football Association and FIFA to pay $253,113.80 or its cedi equivalent to T. T. Ustay Limited as indemnity in connection with the construction of the Goal Project at Prampram.
The court, presided over by Mrs Justice Barbara Ackah-Yensu, also ordered the two institutions to pay interest on the sum at the prevailing commercial rate from September 2004 until the date of final payment.
It gave the order in its judgement in a case instituted by Ecobank Ghana Limited against Akaidoo Enterprise Limited for the recovery of GH?337,956.62, together with interest at the agreed rate of 27.45 per cent, plus a spread of five per cent per annum from August 17, 2006 to the date of full and final payment.
Statement
According to a statement of claim filed by Ecobank, it granted a short-term loan of GH?165,000 in or about April 2004 to finance the defendant’s construction project.
The loan was secured by receivables from executed contracts due to the defendant from clients, which included T. T. Ustay Limited, on account of the FIFA Goal Project at Prampram.
It said the loan taken by the defendant from the plaintiff was to be repaid from sources which included the Goal Project.
Defendant
The defendant, Akaidoo Enterprise Limited, on the other hand, contended that T.T. Ustay Limited was contracted by FIFA and the GFA to undertake the Goal Project in or about June 2003.
It said the defendant was engaged by T.T. Ustay as a sub-contractor on the Goal Project for the purpose of undertaking constructional works on behalf of T.T. Ustay.
It said the agreed sub-contract sum was $548,535, out of which $303,000 was paid to the defendant, leaving an outstanding balance of $245,535.
According to the defendant, it successfully completed the project and handed it over to T.T. Ustay in September 2004 for onward delivery to the GFA and FIFA.
The defendant served several reminders and demand letters on T.T. Ustay but it failed to pay the defendant.
Akaidoo Enterprise, therefore, issued a notice against T.T. Ustay, claiming indemnity from it against the claim by Ecobank.
Third party proceedings
Third party proceedings arose as a result of a judgement obtained by Ecobank against Akaidoo Enterprise for the recovery of the sums being claimed.
After judgement was entered in favour of the plaintiff, the defendant filed a motion ex-parte against T.T. Ustay.
Defence
In its defence, T.T. Ustay claimed that it was not liable to provide any indemnity to Ecobank’s claim against Akaidoo Enterprise.
It initially disputed Akaidoo Enterprise’s claims but subsequently secured an order for further third party notice to be issued and served on the GFA and the FIFA, claiming contribution or indemnity to the tune as set out in the final payment certificate issued by the supervising consultant hired by the GFA and the FIFA.
The GFA and the FIFA maintained that they never sanctioned variations and additional works on the project and denied any liability.
They also counter-claimed for the payment of penalty by T.T. Ustay for failure to complete and hand over the project on the scheduled date.
Source: Graphic