A Ghanaian IT company, West Blue Ghana, has filed a lawsuit against the government and the Ghana Revenue Authority (GRA) for failing to pay over GH¢289 million in arrears for services rendered under a contract for the National Single Window and Integrated Risk Management System (NSW Contract).
The contract, which was executed in August 2015, aimed to facilitate trade and enhance revenue collection at the country’s ports and borders. West Blue was to provide a platform that would allow importers, exporters, and other stakeholders to access and exchange information online.
According to the lawsuit, West Blue was to be paid a fee equivalent to 0.35 per cent of the final invoice CIF value of import consignments entering Ghana through the seaports, airports, and land borders. However, the government later reduced the fee to 0.28 per cent without any justification.
West Blue claims that it has not received the full payment of the contract fees from September 2015 to May 2020, despite several attempts to recover the outstanding debts. The company is seeking the recovery of the sum of GH¢289,547,825.36, plus interest, as well as the equipment it procured to perform its obligations under the contract.
The lawsuit comes at a time when the government is facing fiscal challenges due to the impact of the global economic slowdown and the decline in commodity prices. The government has been struggling to meet its revenue targets and has resorted to borrowing from both domestic and external sources.
The GRA, on the other hand, has been under pressure to improve its efficiency and effectiveness in tax administration and collection. The GRA has introduced several reforms and initiatives, such as the Integrated Customs Management System (ICUMS), to streamline the customs processes and reduce the cost of doing business.
The NSW Contract was part of the government’s efforts to modernise the customs system and comply with the World Trade Organisation’s Trade Facilitation Agreement. The contract was expected to increase the transparency and accountability of the customs operations and reduce the incidence of corruption and smuggling.
The outcome of the lawsuit could have significant implications for the government’s credibility and reputation, as well as the business environment and investor confidence in the country. It could also affect the relationship between the government and its development partners, who have supported the implementation of the NSW Contract.
West Blue Ghana is a reputable IT company that has been involved in several projects in Ghana and other African countries. The company has been recognised for its innovation and excellence in providing e-government solutions and services.
The company has expressed its hope that the matter will be resolved amicably and fairly and that the government will honour its contractual obligations and commitments.
Source: GhanaWeb
