Dram Oil sues Deloitte and Touche, demands payment of more than $187m

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Oil Trading Company, Dram Oil and Trading Limited has sued auditing firm, Deloitte and Touche at the Commercial Division of the Accra High Court.

The company is accusing the firm of breaching its duty of care as well as being negligent in putting together a report.

Dram Oil wants the court to order the recovery of various sums in excess of $187,595,000 from Deloitte.

Documents filed in court and sighted by JoyNews indicate that the issue originated from a commercial dispute that occurred in 2013 between Dram Oil and commercial bank, Cal Bank.

The dispute ended up in court with Dram Oil obtaining a favorable judgement.

The court additionally made consequential orders for the appointment of an audit firm to “audit the books, records and inventory of the 7th Defendant relating to the subject-matter suit particularly with respect to payments, receivables, emergency cargo under recoveries received by the 7th Defendant under the Tripartite Agreement”.

Deloitte and Touche is said to have been tasked to undertake this audit in May 2018 after the initial auditing firm had failed to do so.

Documents arising from the Court proceedings which are believed to have determined the relevant facts relating to the dispute are said to have been made available to Deloitte and Touche.

Dram Oil, however, alleges that the report submitted by the audit firm showed it had relied on “irrelevant, misleading and egregiously defective fictions that it called “assumptions”, which the Defendant knew or ought to have known were not true or reliable since the Defendant had no reasonable basis to believe
same to be true or reliable, all of which were wrongful and constitutes professional negligence”.

In view of this, Dram Oil argues that the audit firm ended up making findings and conclusions that were contrary to facts established by the court in its favour, hence, the decision to initiate the legal action.

“Plaintiff avers that the actions of the Defendant were grievously unprofessional and negligent, same breached the duty of care which Defendant owed to the Plaintiff and violated basic but fundamental tenets applicable to the audit profession as contained in the International Standard on Related Services (ISRS) 4400 and the Institute of Chartered Accountants Ghana’s Code of Ethics,” portions of the suit stated.


Source: Myjoyonline.com

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Kennedy Mornah is an Award Winning Ghanaian Journalist with over two decades of experience in the Ghanaian Media landscape spanning the electronic, print and digital media. He is a Media Consultant, a Corporate MC, Radio and TV Host, Founder and Publisher of the Maritime and Transport Digest Newspaper, Businessman, a Go getter and an optimist. He has worked for renowned media organizations including Diamond Fm in Tamale, Luv Fm in Kumasi, Oman Fm in Accra and Starr Fm in Accra In 2017 he received the Reporter of the Year Award at the Ghana Shippers Awards in Accra, Ghana.

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