Supreme Court Upholds Decision Nullifying US$33.3m Arbitration Award Against Justmoh Construction

The Supreme Court has unanimously dismissed an application by Ashanti Port Services Limited (APSL) seeking to overturn a High Court ruling that cancelled a US$33.3 million arbitral award previously granted in its favour against Justmoh Construction Limited.

A five-member panel led by Chief Justice Paul Baffoe-Bonnie, alongside Justices Asiedu, Richard Adjei-Frimpong Kwofie, Senyo Dzamefe and Kodwo Amaleboba, ruled that APSL’s request for the court to exercise its supervisory jurisdiction had no legal basis.

The ruling effectively ends a long-running legal battle surrounding the Boankra Inland Logistics Terminal Project, with both the High Court and the Supreme Court maintaining that APSL lacked the necessary legal and corporate authority to commence arbitration proceedings at the time.

The courts held that a subsequent attempt by APSL to retrospectively approve the arbitration through a board resolution could not correct the initial defect in the process.

Lead counsel for Justmoh Construction, Professor Kwame Gyan, welcomed the Supreme Court’s decision, describing it as confirmation that the company’s position was supported by the facts and the law.

“We have always had confidence in our brief because we know the facts support our case. It comes as no surprise that the Supreme Court agrees with us. Due process has won,” he said.

The dispute is linked to the Boankra Inland Logistics Terminal Project, a major government initiative designed to improve Ghana’s transit trade and logistics infrastructure.

The project involves collaboration among key institutions, including the Ministry of Transport, Ghana Shippers’ Authority and the Ghana Ports and Harbours Authority (GPHA).

In August 2022, APSL engaged Justmoh Construction as the main contractor for the first phase of the project. However, APSL was unable to secure the financing required under its concession agreement.

GPHA later stepped in by providing US$33.3 million through a share subscription arrangement, with the funds transferred directly to Justmoh Construction as mobilisation capital to begin construction works.

Following APSL’s failure to meet its financing obligations, the Ghana Shippers’ Authority terminated the concession agreement in August 2023, leading to the state taking control of the project.

Months later, in December 2023, APSL initiated arbitration proceedings against Justmoh Construction, seeking the repayment of the US$33.3 million. An arbitral tribunal subsequently ruled in APSL’s favour in 2025.

However, the High Court overturned the award after finding significant legal and procedural shortcomings in APSL’s case.

The court determined that APSL did not have valid board approval before initiating arbitration and that a later attempt to ratify the process at a January 2024 board meeting was ineffective because key stakeholders, including GPHA and the Ghana Shippers’ Authority, were not represented.

The High Court also ruled that granting APSL a refund would amount to unjust enrichment, since the funds in question were provided by GPHA and not APSL.

With the Supreme Court now affirming the High Court’s decision, the arbitration award in favour of APSL remains cancelled.

Yaw Opoku Amoako

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