Arda Turk Ghana Limited has initiated legal action at the Accra High Court, requesting an interlocutory injunction to block the Ghana Revenue Authority (GRA) from proceeding with what the company describes as an unlawful auction of its assets.

The dispute centers on unpaid duties totaling over GH¢4 million (GH¢4,084,038.33), for which Arda Turk says it had previously agreed to a payment plan with the GRA. However, the company alleges that the GRA has since disregarded the agreement and is planning to auction the assets to the Ghana Armed Forces (GAF).

In the suit, Arda Turk argued that under the Customs Act, the GRA does not have the authority to allocate uncleared goods to any beneficiary.

Additionally, the company contends that the GRA lacks the legal right to handle its assets in a way that conflicts with the company’s interests, particularly when efforts are being made to settle the outstanding duties and taxes through officially approved channels.

The company accused the GRA of acting in bad faith and warned that, without court intervention, the GRA’s actions would cause irreparable harm to its business.

Arda Turk is asking the court to stop the GRA, its agents, and officers from dealing with its assets in a manner that violates the company’s rights and ownership until the case is resolved.

Facts of the case

In a lawsuit filed on September 10, 2024, Arda Turk Ghana Limited detailed that it had secured a contract from the Ghana Water Company Limited (GWCL) for a water expansion project.

To fulfill the contract, its parent company, Arda Muthendislik, imported vehicles, machinery, and equipment. The Ministry of Finance granted permission to clear these items under a permit, pending parliamentary approval for exemption from Customs duties and taxes.

Upon project completion, GWCL handed the assets back to Arda Muthendislik. Following this, Arda Muthendislik established Arda Turk Ghana Limited and sought a customs duties and taxes assessment from the GRA for the assets.

However, before the company could settle the duties, its local consultant, Jooes Company Limited, sued. In 2019, the court issued an injunction preventing Arda Turk from relocating or disposing of the assets until the case was resolved.

Disputed payment process

In 2021, the GRA calculated the duties and taxes owed by Arda Turk, but the company explained that it was unable to make payments due to the existing injunction. After the court lifted the restriction on the assets, Arda Turk notified the GRA, which then issued a final assessment in 2023, totaling over GH¢4 million (GH¢4,084,038.33).

In November 2023, Arda Turk applied for installment payments, a request that the GRA accepted, provided the company could secure a bank guarantee. Unable to obtain the guarantee, Arda Turk offered an insurance bond as an alternative, which the GRA agreed to.

On March 15, 2024, after paying the required premium, the company submitted the insurance bond, and following a review by the GRA’s Risk Management Unit, approval was recommended.

Although the Commissioner-General initially approved the arrangement, the GRA later stated that the agreement hadn't been reviewed by its legal department. After additional checks, the legal team gave its clearance, and the Commissioner-General reaffirmed approval in August 2024.

Auction threat

Despite the approvals, Arda Turk claims the GRA has failed to print the tax bill to facilitate payment. Without any reasonable and tangible explanation the agreement had been terminated, the company alleges that in late August 2024, the Head of the Auction Unit at GRA, Eric Afari, informed them that the agreement had been discontinued and that GRA had seized their assets.

On September 3 and 4, 2024, Mr. Afari of GRA reportedly led a team of customs officials to take stock of the assets, with plans to allocate them to the Defence Industries Holding Company (DIHOC), a subsidiary of the Ghana Armed Forces.

Allegations of influence

Arda Turk has accused DIHOC of leveraging its position as a state entity to pressure the GRA into confiscating its assets and transferring them to DIHOC.

The company alleges that in 2023, Brigadier General Benjamin Amoah-Boakye, head of the Ghana Armed Forces (GAF) Legal Unit, approached them with a business partnership proposal. After extensive negotiations, a Memorandum of Understanding (MoU) was signed between Arda Turk and DIHOC.

However, Arda Turk contends that DIHOC’s influence over the GRA was an attempt to acquire the assets at no cost. As a result, the company decided to terminate the MoU.

Subsequently, the Ghana Army allegedly escalated its efforts to take over Arda Turk’s assets using state machinery and the GRA. These actions have led to the lawsuit and the request for an interlocutory injunction against the GRA.