Court orders CEPS to restore licences

May 1, 2008 (Back Page)

THE Commercial Court in Accra has ordered the Commissioner of the Customs, Excise and Preventive Service (CEPS) to restore the licences of three shipping companies.
The court also declared as unlawful the blockage of the shipping companies’ access to the GCNet system because “it has the effect of revoking their licences”.
According to the court, the Commissioner of CEPS acted ultra vires of the powers vested in him by LI 1178 by revoking the licences of Quality Shipping Limited, Globe Ventures Limited and Prime Freight Limited.
Counsel for the three companies, Mr Stanley R. K. Ahorlu, applied for judicial review on behalf of his clients following the decision of the Commissioner of CEPS to block the shipping companies’ access to the GCNet system on the grounds that the three had made false declaration as Customs House Clearing Agents.
The court, presided over by Mr Justice S. Marful-Sau, an Appeal Court judge sitting with additional responsibility as a High Court judge, held that the Commissioner of CEPS did not follow laid down principles of law such as rules of natural justice before blocking the shipping companies from accessing the GCNet system.
He said “I consequently order the respondent to restore the licence of the applicants. I do not think the respondent (Commissioner of CEPS) can be stopped from conducting investigation into the activities of the applicants”.
“In fact, that is what the respondent is supposed to do under Sections 15 and 16 of LI 1978. The investigation is to go on but the applicants’ licences ought to be restored,” the court continued.
The matter was adjourned to May 5, 2008 for assessment of damages against CEPS.
An affidavit in support of the shipping companies’ motion alleged that the shipping companies’ access to the GCNet system was blocked without notice or legitimate reason on November 11, 2007.
That action, the shipping companies stated, amounted to the revoking of their licences as Customs House agents.
It said officers of the affected companies were arrested on the same day for allegedly making false declarations but they were released after they had written statements refuting the allegations and were accordingly granted bail.
“That, in effect, the respondent has arbitrarily revoked the licences of the applicants as Customs House Clearing Agents without first conducting a conclusive investigation into the said allegation against them, without written notification of proof of those allegations, as well as not offering them the opportunity to defend themselves, and, therefore, the opportunity to appeal any adverse findings against them,” the affidavit averred.
According to the shipping companies, the action of the Commissioner of CEPS had resulted in the loss of a monthly revenue of GH¢1,500 for each of the shipping companies with effect from November 11, 2007, as well as the collapse of their freight forwarding businesses and damage to their reputation as freight forwarders.
However, the CEPS denied assertions by the shipping companies and stated that investigations were ongoing into the shipping companies’ alleged falsification of Final Classification and Valuation Report (FCVR) to the CEPS.
CEPS further argued that although investigations had not been completed it had emerged that the shipping companies had made false declaration thereby causing financial loss to the state.
It argued that there was the need for the licences of the shipping companies to be revoked in order to stop them from further engaging in alleged fraudulent activities.