Failure by government to release 1.8 million dollars to a cocoa processing company, Calf Cocoa International has caused the state to lose more than four million dollars in 2008.
The company was contracted by government to process cocoa but government failed to deliver its part of the contract which included disbursing 1.8 million dollars to the business entity to run a cocoa processing factory.
A judgement debt in excess of four million dollars was then awarded against the state.
Speaking at the Judgement Debt sole commission hearing Tuesday, lawyer for the company, Mr Tony Lithur explained that several attempts to get government to pay the money proved futile.
“Somehow there was some reluctance on the part of Ministry of Finance to disburse the said amount.
“In the end the ministry suggested that it would not pay the amount directly to Calf cocoa and this was contrary to the agreement,” Tony Lithur explained.
According to him, the Ministry rather suggested that Calf Cocoa entered into another sales agreement with Cocobod before the money would be released.
The company, Lithur explained, opposed the new agreement because it needed the amount agreed in the original contract to pay some staff of the company for work done.
Lithur said the company had no alternative but to proceed to court to demand compensation.
The lawyer reported the trial judge as saying the state acted negligently in failing to pursue the case.
He said the court was of a resounding conviction that the state was at fault and awarded hefty damages against it.
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