US$50m Judgment Debt Looms Over Abrogation Of Accra Smart Traffic Contract

Ranking Member on the Road and Transport Committee of Parliament, Hon. Governs Kwame Agbodza is warning of a looming $50 million judgment debt over the abrogation of a contract to fit Accra with smart traffic lights.

While addressing a press conference in Accra, he pointed out that the Accra Intelligent Traffic Management System contract is the subject of a court case at the international court of arbitration and that Chinese company, Beijing Everyway are demanding US$ 50 million over the contract that has since been given to Huawei.

“Tread cautiously with whatever you have done with this particular contract because my information is that you are heading towards payment of a judgment debt of almost $50 million,” he said.

It would be recalled that in 2020, the contract for the project was terminated with Beijing Everyway and re-awarded to Huawei under the supervision of the National Security Ministry.

Beijing Everyway has since gone to the London Court of International Arbitration.

And the US$ 50 million that the Chinese company is seeking, Hon. Agboja said, is just for damages. “That $50 million would not include the actual cost, which is another $100 million and a further $25 million tax waiver that we have granted Huawei,” he said.

He added that “Ghanaians are not going to be happy with the circumstances which we are in financially. That could be at the peak of recklessness on the part of the Akufo-Addo government.”