The Kumasi Metropolitan Assembly (KMA) on Tuesday won its legal tussle against Freko FD Enterprise at the Court of Appeal in Kumasi.
The court, by a three unanimous decision set aside a judgement by the Kumasi High Court that said KMA should pay Gh¢42 million judgement debt to Freko, a Kumasi-based construction firm.
This followed the abrogation of a build operate and transfer (BOT) contract to construct some public toilet facilities in the Kumasi metropolis, the KMA earlier awarded to Freko.
The High Court presided over by Justice Kow Amissah-Koomson on January 23, 2015 delivered that judgement.
Freko went to court following the abrogation of the contract because it argued that that it invested monies in the construction of the facilities.
But the Court of Appeal presided over by Justice Emmanuel Kwame Ayebi upheld KMA’s appeal on the grounds that the assembly had a right to walk out of contract when there was a clear breach that goes to the root of the agreement.
Other members of the panel included Justice Angelia Mona Damakyere and Justice Getrude Torkonoo.
The decision therefore comes as relief to KMA which has been burdened with a debt stock of more than Gh¢100 million accumulated over several years.