BoG wins case against Sibton Switch Limited, court orders Sibton to pay costs

The Bank of Ghana has announced its victory in the arbitration against Sibton Switch Ltd at the London International Court of Arbitration (LICA).

On the 9th of April 2018, Sibton Switch filed a Request for Arbitration with the LCIA against the Bank of Ghana for breaching the Master Agreement for the Ghana Retail Payment Systems Infrastructure entered into by the two parties.

BoG then noted that the contract awarded to Sibton Switch was one-sided in favour of Sibton Switch and was severely detrimental to the interests of the Bank. For example, the Public Procurement Authority approval for the project provided that the Bank of Ghana’s maximum liability was to be GH¢300,000. Contrary to this approval, the contract with Sibton Switch provided that the Bank of Ghana had a huge potential liability of USD $478 million (GH¢2.6 billion).

Sibton Switch went to the LICA seeking relief in the sum of USD 478 million from the respondent, Bank of Ghana.

The claims were dismissed due to the failure by Sibton Switch Systems Limited to comply with the orders of the Tribunal including an earlier interim award made by the Tribunal in favour of the Bank of Ghana, which required Sibton Switch to make an interim award payment for security of costs.

The Court also issued an award in favor of the Bank of Ghana (BOG) dismissing all claims brought by Sibton Switch Systems Limited (“Sibton Switch”) in relation to the termination by the Bank of the Master Agreement for the Ghana Retail Payment Systems Infrastructure in 2017.

The Tribunal also ordered Sibton Switch to make a substantial payment to the Bank in respect of its legal fees and costs of the arbitration.

The final award also orders Sibton Switch Systems Limited to pay to the Bank of Ghana in full, its costs of the arbitration, in respect of the Bank of Ghana’s legal fees.

The Bank’s current Governor, Dr. Ernest Addison, said he was pleased with the favourable outcome for the Bank in these proceedings, and for the billions of Ghana Cedis saved by the Ghanaian taxpayer as a result.