GNPC $700m loan saga: Judge to rule on Jan 7

The Judge hearing the controversial $700million loan case brought against the Ghana National Petroleum Corporation (GNPC) by three Members of Parliament has set January 7, 2015 to rule on an injunction application by the plaintiffs.

The MPs- Dr Mathew Opoku Prempeh, Dr Anthony Akoto Osei and Samuel Atta Akyea have challenged the decision by the Corporation to sidestep Parliament in their bid to secure the loan.

Lawyer for the plaintiffs, Nana Asante Bediatuo is asking the judge, Janapare Bartels Kodwo to direct the GNPC to suspend any transaction relating to the procurement of the loan, at least until hearing of the substantive case is concluded.

But the lawyer for the Respondent, Tony Lithur said the request by the Plaintiffs would stall efforts in securing the loan.

He has also pleaded with the judge to set another date for ruling on the injunction application but the Judge is adamant.

Joy News' Kwakye Afreh Nuamah reported the judge as saying the January 7 date is appropriate.

He needed at least two weeks to study the documents brought by counsel for both plaintiff and respondent.

It is not clear when arguments on the substantive case will be heard.

Facts of the Case

The GNPC is securing a loan of $700million to expand its operations but the deal has not gone to Parliament for approval.

Members of Parliament, particularly of the opposition New Patriotic Party have described the transaction as illegal.

They have sued the GNPC and are asking the court to declare that the GNPC “contracting, procuring, securing or otherwise acquiring or drawing down on the loan facility or any other loan without prior approval of parliament is unconstitutional, unlawful, null and void.”

They also want a declaration that “defendant’s decision to undertake a programme or projects without parliamentary approval is ultra vires and violates the Petroleum Revenue Management Act 2011 (Act 815) and is therefore null and void.”

But the Chief Executive Officer of the Corporation, Alex Mould has insisted their action is legal.

He said they sought advice from the Chief government legal advisor, the Attorney-General, the Ministers of Energy and Finance before beginning the transaction.

They are praying the court to rule in their favour.

Source : myjoyonline.com