Ambulance case: Gov’t breached contract clause on LCs-Jakpa

The businessman accused of causing a financial loss to the state in the ambulance deal, Richard Jakpa has testified in court that the government violated certain clauses of the contract agreement when setting up letters of credit (LC).

During cross-examination by the Attorney-General, Richard Jakpa explained that the government breached clause 5.1 by directly establishing the LC with Big Sea and making payments to them instead of his company, Jakpa at Business. 

He thus maintained that his company, Jakpa at Business is not responsible for any financial loss caused to the state. 

Jakpa, who had earlier informed the court that his company ceased dealings with the government after signing the contract, added that he initiated a civil suit following the breach. 

The Commercial Division of the High Court subsequently ruled that all future LCs should be established in Jakpa's name. 

The court expressed surprise at the government's ability to establish the LC in Big Sea's name.

When questioned about whether 28.7 percent of the transaction amount was paid to Jakpa at Business, Jakpa responded, "I know it's 28 but I don't know the nominal figure."

Jakpa's Dismissal Letter tendered

Also in court yesterday, the Deputy Attorney General, Attorney-General, Alfred Tuah-Yeboah entered into evidence a letter supposedly written to dismiss Jakpa from the Ghana Armed Forces (GAF) in 2007.

This was objected to by lawyers for the businessman but the presiding judge, Justice Afia Serwah Asare-Botwe admitted the document into evidence. 

She said the witness had already acknowledged the document being tendered and had already said he could speak to it.