Prime News Ghana

Gov't business in limbo as SC freezes Consolidated, Treasure accounts over judgement debt

By Jeffrey Owusu-Mensah
Minister of Finance, Seth Terkper
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Government business is gradually grinding to a halt following a Supreme Court order freezing the Consolidated and Treasure Accounts.

The Supreme Court's order was necessitated by an action filed by non-bank financial institution, NDK Financial Services over a debt it is owed by the government.

According to Joy FM's George Wiafe, government entered into a contract with a private businessman to roll out a rural electrification project between 2005 and 2006 who obtained funding for the project from NDK and government was to pay the contract sum into a joint account held by the financial institution and the private businessman.

The government was to pay the contract sum into a joint account held by the financial institution and the private businessman but  failed to do that and rather paid the money into another account, forcing the hand of NDK to seek justice in court which it won.

Though government is appealing a judgment debt granted NDK after the state failed to honour the terms of an agreement with the company, the development is said to be hampering government's running of its business with a senior government official reported to have said the freeze is affecting his ability to fuel his official vehicle to conduct government business.