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13 August 2017

Judgment Debt Looms At STC


Prudential Solutions contemplates suing over Akomea’s termination of contract

The State Transport Company (STC) has been saddled with a potential judgment debt in the making, after the new managing director, Nana Akomea, yesterday, terminated a contract with another company.

Yesterday, Nana Akomea terminated an agreement with Prudential Solutions Limited, a privately-owned Ghanaian company, which was said to have been contracted to provide courier services for the STC in 2016.

A letter that The Republic has intercepted reveals that the build-up to terminate the contract started on the 5th of July, when it had first been communicated to Prudential Solutions that its contract was to be terminated on the 12th of July.

The actual reason for the move to terminate the contract is not known, but an August 2 follow-up letter indicates that Prudential Solutions owed STC some Ghc450,000 that it had proposed to repay in six months.

Apparently, the new managing director thought the proposition to repay whatever Prudential Solutions owed over the six months’ period was not good enough and therefore used it as reason to abrogate a contract that the STC had with Prudential.

Sources say however that the reason driving Mr. Akomea’s abrogation is not tenable and is politically motivated, as he wants to give the contract to another company.

Yesterday, Management of Prudential told The Republic that they were in contact with their lawyers and that a suit may be in the offing.


“We are consulting with our lawyers on the way forward as this has just happened today. We will come out later to explain our side of the story, but until then, the advice is that we don’t speak on the issue to the media,” a staff who spoke to The Republic on phone said yesterday.

The staff even refused to divulge the nature of the contractual relations with the STC.

Sources however say the Intercity STC Coaches Limited had entered into a contract with Prudential Solutions to revitalize its parcel delivery service in August 2016. It is therefore just almost a year into the contract that Nana Akomea is abrogating it.

Nana Akomea was appointed Managing Director of the company by President Akufo-Addo in April 2017.

An August 2, 2017 letter that rehashes a contractual abrogation that is supposed to have taken place on 12th July, 2017 said a solution that Prudential had proposed to settle its indebtedness to the STC was unsatisfactory.

“The arrangement you had proposed to Management in your letter of 12th July, 2017, offering to pay lease fees of one hundred thousand Ghana cedis (Ghc100,000) a month and six month period to settle only four hundred and fifty thousand Ghana cedis (Ghc450,000) arrears is not acceptable to Management of ISTC.

“The contract between ISTC and Prudential Solutions Limited therefore stands abrogated,” Akomea’s letter said.

The letter ordered Prudential to hand over all assets of the STC in its possession to Management of STC.








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