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21 February 2017

Pay Litina $380,000, GH¢45,000 – Court orders National Sports Authority

litina

The Commercial Division of the Accra High Court has given the green light for properties belonging to the National Sports Authority (NSA) to be confiscated to offset a $380,000 judgement debt that it owes Litina Travel and Tours Limited.

The order is to enforce a judgment of the court secured by Litina against the NSA after the sports authority sidestep the company from airlifting a contingent to the 2015 All African Games held in Congo Brazzaville despite winning the bid through competitive tender.

In November last year, the court, presided over by Mr Justice George Koomson, held that the decision of the NSA to award the contract to another company instead of Litina was a violation of Article 23 of the 1992 Constitution.

Article 23 requires administrative bodies and officials to act “fairly and reasonable and comply with the requirements imposed on them by law.’’

The court was also of the view that the NSA’s decision not to award Litina the contract after declaring it the winner violated the Public Procurement Act, 2003 (Act 663).

“The conduct of the NSA was a breach of the principles of transparency, non-discrimination and equal treatment,’’ it held.

 

litinae.

 

Madam Ernestina Abroaquah, Managing Director of Litina Travel and Tours (left) and Joe Kpenge, Director General of the National Sports Authority

 

Damages
The $380,000 awarded to Litina was to compensate it for the loss of profit that it would have accrued from the contract.

Also, the court awarded the company GH¢45,000 as legal cost and other damages.

Background
Per the court records, the NSA in 2015 placed an advertisement in the media calling on firms to submit their profiles in undertaking a travel consultancy services for the sports authority, which has oversight responsibility for about 46 sports disciplines in the country.

The said consultancy services was to be for an initial five year-term.

After evaluating the profiles, the NSA shortlisted two firms, namely, Litina Travel and Tours Limited and Africa Origin Travel and Tours Limited.

On August 14, 2015,the two firms were subsequently requested by the NSA to submit proposals for which would be subjected through a competitive tender process under the Public Procurement Act, 2003 (Act 663).

Litina and Africa Origin were to submit technical and financial proposals for the first transaction under the five year deal, which was transporting a contingent to the 2015 All African Games which was held in Congo Brazzaville.

After the tender processes, the tender committee adjudged Litina Travel and Tours as the most successful bidder and accordingly recommended it for the award of the contract.

With regard to the technical evaluation, Litina got 86 per cent score while African Origin had a 46 per cent score.

In terms of the financial aspect, the price quoted by Litina was $884,485 while that of African Origin was $945,356.

Despite Litina Travel and Tours winning the bid, the Ministry of Youth and Sports intervened and awarded the contract to African Origin Travel Tours Limited.

Suit
Litina, therefore, dragged the NSA to court seeking special damages of $380,000, legal costs and a declaration that the award of the contract to Africa Origin Travel and Tours Limited violated Article 23 of the 1992 Constitution and the Public Procurement Act, 2003 (Act 663).

 

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