The board of Ghana National Petroleum Corporation (GNPC) has shockingly approved a GH¢4million as Separation Package for Dr. Kofi Koduah Sarpong, throwing workers of the state-owned institution into anger and murmuring.
The amount, according to insiders, is the first instalment payment to the ex-Chief Executive Officer (CEO).
The cheque is expected to be handed over to him as GNPC is not ready to fight the matter in court for Dr. Sarpong and his lawyers led by KT Hammond, the NPP MP for Adansi Asokwa to justify their demand for the end of service benefit per the contract he went into with the government in 2017.
The GNPC board led by Freddie Blay, had initially refused to pay a whopping GH¢9million the equivalent of US$1 million, which Dr. Sarpong had demanded as his severance package after he was sent home in July, this year, having completed his tenure of office.
Mr. Blay’s board, had described the payment as illegal insisting that Dr. Sarpong, was not entitled to the payment since his 5-year contract with the Corporation was not terminated but ran its full course with salaries, allowances and other benefits including medical treatment abroad, properly paid him.
The ex-GNPC CEO, subsequently sued the GNPC for the GH¢9 million, which the GNPC represented by external lawyers, refused to enter an appearance and file a defense to rebut the demand.
But despite the concerns raised by sections of the workers, the board and management are expected to sign the cheque later today and hand it over to him.
Some have sought to argue that Dr. Sarpong is not comfortable with the public scrutiny and exposure that the court case may bring as some dirty linen may be washed in the courtroom.
Mr. K. T. Hammond, who is the lawyer for Dr Sarpong quickly withdrew the application for default judgement, last Monday, when the case was called.
The GNPC board has approved that KK Sarpong should be paid GH¢4million as an interim payment meaning more payments would be made to KK Sarpong as the days go by.
“Our Oil funds are being dissipated in such a reckless manner while Ghanaians are being compelled to pay more taxes like the additional 2.5% VAT and the obnoxious E-levy”, one GNPC worker, cried.
GNPC, is being represented by a legal firm belonging to Lawyer Osei Aidoo, onetime NPP MP for Tema West, who was a Majority Leader and Minister of Parliamentary Affairs during his time in Parliament under the Kufuor administration.
At GNPC, the law firm of Lawyer Aidoo, is being accused of a conflict of interest situation concerning this legal case. It is being alleged that Mr Aidoo, and Dr Sarpong, are said to be secondary school; Bekwai SDA, mates through to university.
It is further alleged that Dr Sarpong, appointed Lawyer Aidoo’s law firm as GNPC’s external lawyers on sole source basis. There are reports that there is even an issue of his sole sourced procurement at the PPA currently.
Many have sought to question what strong defence Lawyer Osei Aidoo’s law firm will mount in defence of GNPC against KK Sarpong.
Many in the Corporation felt the conduct by the lawyers was deliberate to allow the court to authorize the ESB as a result of lack of defense.
The former CEO was employed for five years, after which the government refused to renew his contract.
The contract provided for separation pay for early terminations of the contract, but not when he had completed his 5-year tenure.
It is, therefore, surprising that Dr Sarpong is pursuing separation pay, although he exhausted his contract terms.
Regrettably, Ghana has a president who condones any act that siphons resources from the state.
But The Herald is informed that both the management of the GNPC led by Ahweneeh Danquah and the Board of Director led by Freddie Blay, have refused to pay the US$1 million, insisting that doing so will amount to causing financial loss to the state.
The contract lists the following upon early termination; 1. Upon separation from the Corporation, The Chief Executive shall, if termination is before the end of his contract, be entitled to six (6) months’ notice upon payment of six (6) months basic salary in lieu of notice. Taxes due shall be borne by the Corporation.
2. Be entitled to four (4) months of his monthly gross salary for each year worked, as separation pay.
3. Be paid 30% of his full annual gross salary as performance bonus.
