Mr Justice Yaw Appau, Sole Commissioner of the Judgment Debt Commission, on Thursday educated a petitioner on how to calculate a simple interest on post judgment debt.
This was after Mr Prince John Baidoo, Chief Executive Officer of Megrey Construction failed to convince the Commission on how he calculated his interest on the money he is demanding from Ghana Civil Aviation Authority (GCAA) as judgment Debt.
According to Mr Baidoo, the Megrey Construction was awarded a contract by the GCAA in 2003 worth GH? 174, 239.40 for the landscaping of the frontage of Kotoka International Airport.
He said, even though the construction company encountered numerous problems during the course of the project, it managed to complete it and hand it over to the GCAA.
He said the GCAA however paid GH? 39, 300, failing to pay the additional balance as promised.
He said, one Mr Paul Boateng who was given a sub contract by the Megrey Construction to provide black soil for the project, sued the company for non-payment of his money at the High Court, leading to the garnishee of the account of GCAA by which he succeeded in getting his money including interest.
He said GCAA however failed to pay the balance it owed to Megrey Construction which now stands at more than GH? 2.8 million including interest calculated from the year 2005 till date.
Justice Appau expressed wonder why the remaining balance of a little over GH? 100,000 could now rise to more than GH? 2.8 million.
Mr Baidoo explained that the money shot-up because of the accumulated interest since 2005 which was calculated at 40 per cent rate and was accepted by the court in the ruling given in favour of Paul Boateng.
Justice Appau however said, the ruling given to Paul Boateng could not be the same as the one being demanded by Megrey Construction and any attempt by officials of Megrey Construction to use the 40 per cent rate to calculate its interest is wrong.
He said there are laid down rules regarding the calculation of simple interest by competent court of judicature and urged officials of Megrey Construction to do the right thing by coming out with the right calculations.
Mr Baidoo promised to get the right calculations done.
Mrs Joyce A. Thompson, Director of Legal, International and Corporate Relations at the GCAA in her testimony to the Commission disclosed that Megrey Construction had sued GCAA over the issue and it is still pending in court.
Justice Appau has therefore summoned the counsel for GCAA to appear before the Commission on April 30, to be able to determine whether it could still hear the petition or allow the court to adjudicate on the matter.
Also in appearance at the Commission was Mr Kwadwo Awuah Appiasah, Director in charge of External Resource Mobilisation at the Ministry of Finance who provided documents in relation to a case involving Balaji Gemlast Company against the Ghana Consolidated Diamond Company in which an amount of 1.8 million dollars was paid to Balaji as judgment debt. GNA