Aggudey jailed 3 months (Setempter 16, 2013) FRONT
The Accra Circuit Court on Saturday
sentenced the Chief Executive Officer of Gocrest Securities Limited,
George Oposika Aggudey, to three months in prison for failing to pay the
social security contributions of his employees.
The court, presided over by Mr Aboagye Tandoh, sentenced Aggudey, who was the 2004 presidential candidate of the Convention Peoples Party (CPP), on two counts of failing to pay the social security contributions of his employees and the penalties thereof.
The court also ordered him to pay the GH¢2.6 million arrears the company owed the Social Security and National Insurance Trust (SSNIT) as of December 2012.
By defaulting in the payment of SSNIT contributions, Mr Aggudey contravened the National Pension Act of 2008, Act 766, which empowers SSNIT to institute criminal charges against defaulters.
Running Battle
Aggudey has had a long-running battle with SSNIT over the payment of social security contributions of his employees.
In October 2006, after several appeals to the management of GSL to settle its indebtedness, which yielded no result, a criminal summons was issued against Aggudey by the circuit court for the recovery of the arrears.
On December 11, 2006, he failed to appear before the Accra Circuit Court on charges of his failure to honour his social security obligations of his workers.
On July 28, 2006, SSNIT conducted an inspection of the wages book of Gocrest and it was revealed that the employer, between January 1995 and 2005, failed to pay 8.1 billion old cedis (GH¢800,000) as his employees’ contributions to SSNIT towards their retirement.
On January 22, 2007, the Accra Circuit Court, presided over by Mr Nathaniel Osam, issued a bench warrant for his arrest for his failure to appear before the court for the second time, the first one being on December 11, 2006.
However, the case was withdrawn from the court after he had pleaded for an out-of-court settlement and given all the assurances to settle the debt.
In February 2008, the company was offered the opportunity to negotiate with SSNIT to pay GH¢1,237,521.36 which was its debt as of December 2007.
A negotiated agreement was signed by the two parties for the settlement of the arrears by monthly instalments. But the company failed to abide by the terms of the agreement, resulting in the abrogation of the negotiated agreement in March 2009.
By 2011, SSNIT was back in court again.
The Accra Fast Track High Court issued a writ of summons to Aggudey, for defaulting in the payment of SSNIT contributions of his employees amounting to GH¢1,678,457.85.
The case went again to the circuit court this year but at the first hearing on February 2, this year, his counsel, Mr Kwamena Baiden, disputed the amount, and requested SSNIT to furnish him with the details, but SSNIT insisted that Aggudey had already been provided details of the case.
The long battle with the court ended last Saturday when the court sentenced him to serve three months in jail.
The court, presided over by Mr Aboagye Tandoh, sentenced Aggudey, who was the 2004 presidential candidate of the Convention Peoples Party (CPP), on two counts of failing to pay the social security contributions of his employees and the penalties thereof.
The court also ordered him to pay the GH¢2.6 million arrears the company owed the Social Security and National Insurance Trust (SSNIT) as of December 2012.
By defaulting in the payment of SSNIT contributions, Mr Aggudey contravened the National Pension Act of 2008, Act 766, which empowers SSNIT to institute criminal charges against defaulters.
Running Battle
Aggudey has had a long-running battle with SSNIT over the payment of social security contributions of his employees.
In October 2006, after several appeals to the management of GSL to settle its indebtedness, which yielded no result, a criminal summons was issued against Aggudey by the circuit court for the recovery of the arrears.
On December 11, 2006, he failed to appear before the Accra Circuit Court on charges of his failure to honour his social security obligations of his workers.
On July 28, 2006, SSNIT conducted an inspection of the wages book of Gocrest and it was revealed that the employer, between January 1995 and 2005, failed to pay 8.1 billion old cedis (GH¢800,000) as his employees’ contributions to SSNIT towards their retirement.
On January 22, 2007, the Accra Circuit Court, presided over by Mr Nathaniel Osam, issued a bench warrant for his arrest for his failure to appear before the court for the second time, the first one being on December 11, 2006.
However, the case was withdrawn from the court after he had pleaded for an out-of-court settlement and given all the assurances to settle the debt.
In February 2008, the company was offered the opportunity to negotiate with SSNIT to pay GH¢1,237,521.36 which was its debt as of December 2007.
A negotiated agreement was signed by the two parties for the settlement of the arrears by monthly instalments. But the company failed to abide by the terms of the agreement, resulting in the abrogation of the negotiated agreement in March 2009.
By 2011, SSNIT was back in court again.
The Accra Fast Track High Court issued a writ of summons to Aggudey, for defaulting in the payment of SSNIT contributions of his employees amounting to GH¢1,678,457.85.
The case went again to the circuit court this year but at the first hearing on February 2, this year, his counsel, Mr Kwamena Baiden, disputed the amount, and requested SSNIT to furnish him with the details, but SSNIT insisted that Aggudey had already been provided details of the case.
The long battle with the court ended last Saturday when the court sentenced him to serve three months in jail.
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