A settlement agreement has reduced a GHS 14.85 million judgment debt owed by Equity Savings and Loans Limited to SIC-Life Savings and Loans Company Limited to GHS 5 million. This agreement is central to a GHS 9.85 million financial loss case against Nana Agyei Baffour Awuah, the Member of Parliament (MP) for Manhyia South.
The agreement, dated July 18, 2024, was filed at the Commercial Division of the High Court in Accra. It involved Eco Swiss Investment Limited, a third party, agreeing to pay SIC-Life GHS 5 million to settle the debt. This debt originated from an equity investment and was being enforced against a 31.93-acre parcel of land in Oyibi, Greater Accra Region. The land had been attached by the Deputy Sheriff of the High Court.
This development fits into a broader pattern of scrutiny over financial transactions involving state-owned entities and public officials in Ghana. Such cases often highlight concerns about corporate governance, transparency, and the protection of public funds. The alleged GHS 9.85 million loss to SIC-Life, a state-owned company, underscores the need for robust oversight in financial dealings.
The settlement agreement was reportedly made without the approval of SIC-Life's board of directors, raising significant questions about its validity. The company's then-Managing Director, Amma Frimpomaa Dwumah, awarded the legal brief to Sarkodie Baffour Awuah and Partners, the MP's law firm, exceeding the GHS 150,000 financial threshold for such briefs. This decision has drawn attention from investigators.
The Economic and Organised Crime Office (EOCO) is investigating a suspected GHS 1 million kickback payment to Ms. Dwumah from Sarkodie Baffour Awuah and Partners. Additionally, MP Baffour Awuah allegedly received a suspicious fee of about GHS 2.2 million from Eco Swiss after the debt reduction. These allegations suggest potential conflicts of interest and financial impropriety that could lead to further legal action.
The settlement terms required Eco Swiss Investment Limited to pay the GHS 5 million in five installments of GHS 1 million each. The first installment was due immediately upon execution of the agreement. Subsequent payments were scheduled for December 31, 2024, February 28, 2025, April 30, 2025, and May 31, 2025. This structured payment plan aims to manage the financial obligations over time.
Eco Swiss was also required to pay legal fees equivalent to 15 percent of the outstanding judgment debt by October 31, 2024. Insiders suggest this payment was delayed until after the December 2024 General Elections. The agreement also made Eco Swiss responsible for the auctioneer's costs from prior execution activities, though it remains unclear if these costs were settled.
A default clause in the agreement states that if Eco Swiss fails to meet its obligations, SIC-Life can resume the execution process. This would allow SIC-Life to recover the full outstanding amount of GHS 14,850,776.14, less any sums already paid. This clause provides a safeguard for SIC-Life in case of non-compliance by Eco Swiss.
The settlement agreement was intended to be filed as a consent judgment for court adoption. Madam Amma Frimpomaa Dwumah signed on behalf of SIC-Life, while Nana Agyei Baffour Awuah signed as the judgment creditor's lawyer. Prince Oduro Williams signed for Eco Swiss, with Simon Animley signing as its lawyer. These signatures formalised the agreement between the parties involved.
Questions persist about how land valued at approximately GHS 25 million became the subject of a settlement that yielded only GHS 5 million for SIC-Life, despite the GHS 14.8 million debt. Investigators are examining several payments, including GHS 280,000 in legal fees paid by SIC-Life to Nana Baffour Awuah's law firm, GHS 600,000 allegedly received from Equity Savings and Loans, and the GHS 2.2 million from Eco Swiss. These inquiries aim to uncover the full financial trail and determine if any laws were broken.