Bank of Ghana wins arbitration of $478million against Sibton Switch Systems

The Central bank won an international arbitration of $478million against Sibton Switch.

The London International Court of Arbitration (LCIA) also ordered Sibton Switch to make a substantial payment to the Bank in respect of its legal fees and costs of the arbitration.

Background

On April 9, 2018, Sibton Switch Limited filed a Request for Arbitration at the International Dispute Resolution Centre (IDRC) of the London Court of International Arbitration (LCIA) against the Bank of Ghana for breaching the Master Agreement for the Ghana Retail Payment Systems Infrastructure entered into by the two parties.

After the 2016 elections and on the appointment of a new Management of the Bank of Ghana, it became necessary to review the terms of the contract entered into by the previous administration.

In reviewing the contract the new Management of the Bank reached the conclusion that Sibton had neither acquired the license nor fulfilled the condition precedent for the effectiveness of the rights and obligations of the parties. 

The Agreement, which dealt with the grant of exclusive rights to Sibton Switch to build, operate and own the Ghana Retail Payment Systems Infrastructure was therefore terminated on the basis that it never came into effect.

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

See attached the full details: