Euroget Sued For Breach Of Contract

Egyptian company executing a number of health facility projects in the country, Euroget De Invest, has been sued by Hanisa Forefront, a construction firm and its subsidiary company for illegally terminating a contract between them.

According to the suit filed at the commercial division of the Accra High Court, the plaintiff company claims that its contract was unlawfully terminated when it could not pay the full “secret commission” of $2.7 million demanded by the chairman of Euroget.

Tied to the suit are six other companies and the chairman as well as chief executives of the companies, which according to the plaintiff, played various roles leading to the termination of the contract.

They are Nakia Company Limited, Gold Cost Refinery Limited, Samnort Industries Limited, Sampson Nortey and Basfis S.A. – which are all linked to Dr Said Deraz, the chairman of Euroget.

The plaintiff claims that Euroget, which is the main contractor for the 500-bed military hospital at Afari in Kumasi, the Ashanti Regional capital, acting through its chairman, Dr. Said Deraz executed a $3.95 million contract with it to construct access roads and drains at the military hospital site.

Hanisa Forefront claims that it was coerced to issue a post-dated $2.7 million cheque as a “secret commission” to Bafis S.A. as guarantee in case it failed to pay the said secret commission for the completion of the work.

The suit indicates that based on the agreement, Hanisa Forefront, through its subsidiary, Hanisa Medical Support Services, issued a $900,000 cheque to Bafis S.A. on the directions of the Euroget chairman.

It says Hanisa Forefront also issued $550,000 and $918,732.52 to Dr. Deraz prior to the first payment it received from Euroget and the cheques were drawable by Nakia Company and Gold Coast Refinery Limited – in which Dr. Deraz has shares.

The suit avers that the cheque issued to Nakia was dishonoured for lack of funds but that of Gold Coast Refinery Limited was honoured.

It claims that Hanisa Forefront also paid an amount of $300,000 to Dr. Zeraz through Sampson Nortey to substitute the cheque that was earlier dishonoured.

The suit further avers that due to delays in the payment of the second interim certificate due Hanisa Forefront, it proceeded slowly in executing the contract and Dr. Deraz, acting through Euroget, terminated the contract on February 5, 2018.

Hanisa Forefront claims that by reason of the monies unlawfully demanded and received by Dr. Deraz from proceeds of its interim payment certificates, it directly induced a breach of contract between them.

It maintains that the chairman of Euroget had also caused the company to unfairly and continuously withhold Hanisa Forefront’s second payment of $100,000 and another $243,081.39.

This, the suit claims, is “due to the refusal of the Executive Chairman of 1st plaintiff (Hanisa Forefront) to execute a document to indicate the monies he unlawfully demanded and received were loans.”

Hanisa Forefront is therefore, seeking a declaration that Euroget and its chairman, Nakia Company Ltd, Samnort Industries Ltd and Sampson Nortey are liable to account to it the sum of $1.393,081.39 on grounds of knowing the receipt of the money from it.

It is also seeking an order for Euroget and the others to pay it the above money together with interests at the prevailing commercial bank rate from July 2016 to the date of the final payment.

“A further order referring to the conduct of 1st Defendant (Dr. Deraz) to the Economic and Organised Crime Office and /or Commercial Crime Unit of police CID for further investigations as they relate to the execution of the entire contract of 2nd defendant (Euroget),” plaintiff is praying the court.

It is also praying the court to order Euroget to reinstate the performance of the rest of the contract purportedly terminated or be made to pay Hanisa Forefront “all monies from the performance of the rest of the contract, as if same had been duly completed.