In a recent development, Rockson-Nelson Dafeamekpor, the Member of Parliament (MP) for South Dayi, has filed a lawsuit challenging the extended post-retirement contract of the Chief Executive Officer (CEO) of the Railway Development Authority (GRDA), Ernest Yaw Owusu.
Dafeamekpor , contends that the CEO, has exceeded the constitutional limit of a five-year engagement period, originally granted by President Akufo-Addo.
The suit argues against Owusu’s entitlement to a purported one-year post-retirement contract extension, covering the period from December 18, 2023, to December 17, 2024.
Last October, The Herald reported on issues within the Akufo-Addo government’s management of the GRDA, including allegations of using the authority for personal gains.
Specifically, the report highlighted the retention of retired CEO Ernest Yaw Owusu, through a post-retirement contract spanning five years.
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Amidst the controversy, there is ongoing confusion between the Ministry of Railway Development and Jubilee House, regarding the absolute control over the Authority, further complicated by reports of unauthorized payments.
The CEO, is alleged to have authorized a payment of 100 million Euros to a contractor without the board’s approval, raising questions about financial oversight.
Insiders dispute the reported payment amount, claiming it to be approximately €190 million, inclusive of a €68 million mobilization fee.
It has been emphasized that the CEO, cannot unilaterally authorize payments, as every transaction requires approval from the Ministry of Railways Development (MoRD) and the Ministry of Finance, along with scrutiny from the lending bank and insurers.
The prolonged stay of CEO Ernest Yaw Owusu, beyond the compulsory retirement age of 60 has been a point of contention.
Efforts by the Railway Ministry to enforce his retirement, have faced resistance from Jubilee House, resulting in multiple post-retirement contracts totaling five years.
Documents obtained by The Herald, reveal the issuance of various post-retirement contracts, with the latest extension granted by the Presidency, disregarding the Railway Ministry’s directives and even suspending the approval process for Post-Retirement Contract Appointments as outlined in the 2022 Budget Statement and Economic Policy.
The legal challenge initiated by MP Dafeamekpor, adds a new dimension to the ongoing saga, questioning the constitutionality of Owusu’s extended tenure and the circumstances surrounding the contract extensions.
The dispute highlights broader concerns about governance, financial oversight, and adherence to established policies within the GRDA.
The case is expected to shed light on the intricacies of the situation and address the clash between institutional interests and government policies.
The MP is demanding, amongst other reliefs, an order revoking the one-year post-retirement contract extension.
“1. A declaration that upon a true and proper interpretation of Article 199(4) of the 1992 Constitution as Amended by the Constitution of the Republic of Ghana (Amendment) Act, 1996, a public servant may only be engaged for a limited period of not more than two (2) years at a time but not exceeding five years in all on the condition that the exigencies of the service so require.
2. A declaration that upon a true and proper interpretation of Article 199(4) of the 1992 Constitution as Amended by the Constitution of the Republic of Ghana (Amendment) Act, 1996, a retired public service officer can only be given a maximum of five (5) years post-retirement contract for a limited period of not more than two (2) years at a time.
3. A declaration that upon a true and proper interpretation of Article 199(4) of the 1992 Constitution as Amended by the Constitution of the Republic of Ghana (Amendment) Act, 1996, the 10 Defendant is not entitled to the purported one-year post-retirement contract extension dated the 10th day of October 2023 effective 18th December 2023 to 17th December 2024 given to the 10 Defendant by the President of the Republic of Ghana as he has exhausted the maximum five (5) years engagement period provided by the Constitution.
4. An order revoking the one-year post-retirement contract extension dated the 10th day of October 2023 effective 18th December 2023 to 17th December 2024 given to the 10 Defendant by the President of the Republic Ghana. To continue in the position as Chief Executive Officer of the 2nd Defendant.”
The other reliefs include:
“4.4. My Lords, the 1st Defendant was given a further two-year post-retirement contract effective 16th December 2021 to 15th December 2023 as Chief-Executive Officer of the 2nd Defendant Authority by a letter dated 15th December 2021 signed by the Secretary to the President, Nana Bediatuo Asante, by the President. (Attached and Marked as ‘Exhibit RND 1’ is the letter granting the Defendant a two-year extension as the Chief-Executive Officer of the 2nd Defendant Authority)
4.5. My Lords, by a letter issued by the Ministry of Finance, signed by Hon Abena-Osei Asare and dated 5th August 2022, reference was made to the 2022 Budget Statement and Economic Policy at Paragraph 324, which stated that “Government has, with immediate effect, suspended the granting of approval for Post-Retirement Contract Appointments, except in cases where the skills of the retiring officer are in short supply and unavoidably needed”.
