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INFRALOKS Development Limited (IDL), a reseller of anti-terrorist system involved in a contract with the National Communications Authority (NCA), has revealed that the total sum of the contract was $8 million.

Out of this, it said $6 million was to be due to NSO Group Technologies Limited – an Israeli company with certificate of end-user from the Ministry of Defence in Israel.

Payment structure in the contract

According to Infraloks, the contract states that 50% of the System Consideration shall be paid within 15 business days as of the effective date, 35% paid upon the provision of a written notice from the Company, certifying that the Hardware Equipment was delivered to the End-User's site while 15% would paid upon the provision of a written notice by the Company to the End-User confirming that the Deployment of the System at the End-User's site was completed.

Commission agreement in the contract

It said the payment to NSO by Infraloks was to be made minus a commission agreement to be paid by Infraloks to another Israeli company – Aggura - but amendments by way of addendum to the original contract with NSO required full payment to NSO and for NSO to deal directly with Aggura.

Infraloks to assert its rights in court

The company expressed its readiness to assert its rights under the contract with NCA through the appropriate lawful forum when that becomes the inevitable resort.

In a rejoinder to news that some officials of NCA under the previous administration have shared the said money, Infraloks confirmed that NCA did make a first tranche payment of $4 million in accordance with the terms of the contract.

The statement, signed by George Oppong, Director in charge of Business Development of Infraloks, said the company instructed its bankers to transfer $3 million to NSO as per initial contract payment terms.

But, he said, the bank declined the transfer request on grounds of Bank of Ghana (BoG) rules and regulations on forex transfers of such amounts of money requiring specific documentation as precondition.

NCA failed to meet obligations

He said the transaction could not be completed because NCA did not meet its obligations to Infraloks as per the terms of the contract.

According to him, the NCA, among others, also failed to provide necessary documents required by the bank to facilitate payments to NSO as well as NCA’s outstanding obligation of $4million to Infraloks.

$1m transferred to Israeli company
He explained that out of the total amount of $4 million that NCA transferred to Infraloks, $1 million was successfully transferred to NSO.

Oppong said NCA’s signatory to the contract was sought and obtained a cumulative gross of about $1.5 million and that Infraloks still held $1.5 million which NSO’s portion could not be transferred for the stated reasons.

NCA paid $2m to Israeli company bypassing Infraloks
He explained that even though NCA later informed Infraloks that $2 million has been paid directly to NSO, the Israeli company continues to demand payment from IDL for completion of second phase of the project.

Israeli Company threatens to sue Infraloks

In its demand, Oppong said, NSO is using and relying on a letter from NCA to NSO, which represented that the installation and commissioning phase of the project was complete, and that NSO insists that payment obligations were undertaken by Infraloks, threatening a suit as the overdue amount is subject to a late payment fee at a daily rate of 0.04%.

Infraloks shocked that system was sitting in someone’s garage
“I am very disappointed to discover, courtesy the National Security Minister, in the most shocking fashion that contrary to representations by NCA, including via said letter of June 10 2016 from NCA to NSO, that the system was sitting in someone’s garage”.

Infraloks cooperating with BNI

“These details have been made available to the Bureau of National Investigations (BNI) in utmost good faith and without prejudice as I give my fullest cooperation in its investigations”, he added.