As legal tensions escalate over a terminated contract between the Ghana Airports Company Limited (GACL) and Evatex Logistics Limited, a financial and corporate lawyer has thrown weight behind GACL’s legal position, citing strong contractual grounds for the decision.
Evatex is threatening legal action and demanding $64.6 million in compensation after GACL abruptly terminated its auditing services contract, alleging that the company failed to generate any revenue during its four months of operation. The company has issued a seven-day ultimatum for the reversal of the termination, citing heavy financial losses.
But Jonathan Amable, Managing Partner of LNF Legal Advisors, argues that GACL acted well within its contractual rights, pointing to a key exit clause in the agreement.
“GACL has relied on Clause 7(A) of the contract, which provides a clear legal basis for unilateral termination upon notice,” Amable explained. “Unless there’s a specific clause limiting that right, the company is under no legal obligation to continue the agreement or pay damages—even if Evatex has invested heavily.”
Amable also questioned the legal strength of Evatex’s demand letter, noting that the company’s lawyers failed to cite any specific clause in the contract to justify their $64.6 million claim.
“This omission is significant,” he noted. “It suggests that Evatex’s case may be more emotional than legal.”
The case has sparked debate over the risks involved in public-private contracts, especially when performance-based incentives are involved. Evatex’s contract promised the company 15% of any revenue it uncovered through its audit work for GACL—but with no revenue identified over four months, GACL says the termination is both justified and non-compensable.
The brewing legal battle may end up testing the enforceability of termination clauses in Ghana’s public-sector contracts and could have wider implications for how government entities manage vendor performance.
As of now, GACL has not issued a formal response to Evatex’s ultimatum, but legal watchers say the company appears to be on solid contractual footing.
