OLAM (GHANA) LIMITED VS. ALEX BONNEY

This High Court judgment by Justice Doreen G. Boakye-Agyei concerns a dispute between a flour milling company (the Plaintiff) and one of its distributors and bakers (the Defendant) over an alleged indebtedness and a large consignment of allegedly defective flour. The Plaintiff claimed GH196,434.61 plus interest and costs for goods supplied on a revolving credit line of US$100,000, supported by account statements and post-dated cheques, some of which cleared. The Defendant responded that a diverted 1,000-bag consignment proved unwholesome after test baking by the Plaintiffs Quality Manager, Gabriel Ayiquaye, and Customer Relations Officer, Philip Mensah Panford; retrieval of all bags from his customers was said to be impossible. He returned about 200 bags, alleged two 100-bag shortages, and stated that the Plaintiffs Sales Manager (Mr. Ayakumah) and Accountant agreed that the Plaintiff would replace 600 bags while the Defendant bore 400, prompting issuance of post-dated cheques. Critiquing the Plaintiffs self-generated statements (Exhibit A) and applying Ghanas Evidence Act standards, the Court preferred the Defendants version regarding the defective consignments. The Court held the Defendant is entitled to replacement of 1,200 bags priced at GH80 each (GH96,000) and, after deduction, still owes GH100,464.61; interest was refused under C.I. 52, but costs of GH10,000 were awarded to the Plaintiff.