Attempt by GKA Airport Company Limited to disengage its Korean partners from the STX housing deal suffered a jolt yesterday when the commercial division of the Accra High Court dismissed an application to that effect, on the grounds of procedural error.
According to the court, the application filed by GKA Airports Company Limited was incompetent because it did not follow the laid down rules as provided for by the Companies Act.
The court, presided over by Mrs Justice Gertrude Torkornoo, accordingly awarded costs of GH¢3,000 in favour of the Koreans.
The application followed a botched effort by the parties in the legal tussle over who should lead the construction of the government’s STX housing project to agree to drawn-up terms of settlement for the amicable resolution of the impasse which had stalled the commencement of the project.
At the court’s last sitting, the parties had to meet in the judge’s chambers to thrash out a few things, but that did not work out and counsel for the applicants, Mr Carl Adongo, was asked by the court yesterday to move the application, which he did.
He said the claim by the respondents that they were partners because they had invested money was not the case, because what they brought to the table was only a loan and not investment, since respondents were asking for the repayment of the money.
But counsel for the Koreans, Mr Osafo Buabeng, responded by praying the court to dismiss the application as incompetent because the applicants did not come under the proper procedure.
He said they should have come with a writ, instead of an originating motion, which argument found favour with the court.
The suit, filed by GKA Airports Company Limited through its CEO, Mr Bernard Kwabena Asamoah, the man credited for introducing the STX housing project to the government, wanted the court to determine the rightful partner to execute the project.
The plaintiff also sought to sack the Korean partners from the entire project but the Koreans vowed to resist any attempt to forcibly remove them.
The Koreans were the first to go to court over who owned the company when they sued Mr Asamoah, the Registrar-General and others for allegedly diluting the company’s shares to GKA Airport’s advantage, but the Fast Track High Court adjourned proceedings sine die because the processes to get the case heard were not completed.
President John Evans Atta Mills cut the sod for the commencement of the project in January 2011. Boardroom wrangling between the Koreans and their Ghanaian partners has, however, stalled the construction of 200,000 housing units in the country at a cost of $10 billion, starting with 30,000 houses for the security services