The Accra High Court, Commercial Division, has scheduled July 15, 2025, to commence the trial of a high-stakes case involving Dram Oil and Trading Limited and Deloitte & Touche. The oil trading company is seeking a court order for Deloitte & Touche to pay $187.596 million, citing alleged negligence on the part of the audit firm.
The dispute dates back to 2015 when Dram Oil won a court case against Cal Bank Ghana Limited, which had initiated a suit against Dram Oil and other defendants over a refined oil transaction. As part of the judgment, the court appointed Deloitte & Touche to audit the receivables, payments, and under-recoveries due from Vihama Energy Limited to Dram Oil.
Background of the Dispute
The court's decision to appoint Deloitte & Touche was aimed at determining the amount of money Vihama Energy had received but withheld from Dram Oil, which led to Dram Oil defaulting on its facility obligation to Cal Bank. The audit firm's report concluded that Dram Oil was indebted to Vihama Energy by a significant sum of money, a finding that Dram Oil disputes.
According to court documents, the 2015 judgment firmly established that Vihama Energy had been paid in full for all fees owed by Dram Oil under the Tripartite Agreement covering the oil transaction. As a result, Vihama Energy withdrew its previously filed counterclaim. The court ordered the appointment of a reputable audit firm to audit the books, records, and inventory of Vihama Energy Limited, specifically with respect to payments, receivables, and emergency cargo under-recoveries received and withheld by Vihama Energy.
Allegations of Negligence
Dram Oil alleges that Deloitte & Touche was negligent in its audit, leading to the incorrect conclusion that Dram Oil was indebted to Vihama Energy. The company claims that Deloitte & Touche's Partner, Daniel Owusu, was cross-examined by lawyers for Dram Oil and Cal Bank on how the audit firm reached its conclusions. Despite this scrutiny, the report's findings have sparked a significant dispute between the two parties.
Court Proceedings
The case is expected to examine the extent of Deloitte & Touche's liability in the alleged negligence. Dram Oil's claim for $187.596 million is a substantial sum, and the outcome of the trial will likely have significant implications for both parties. The court's decision will depend on the evidence presented and the arguments made by both sides.
As the trial approaches, both parties will have the opportunity to present their cases, and the court will ultimately determine the outcome. The case highlights the importance of accurate auditing and the potential consequences of negligence in financial reporting.
Key Issues
- Audit Negligence: The alleged negligence of Deloitte & Touche in its audit report.
- Financial Implications: The potential financial implications of the court's decision, including the payment of $187.596 million.
- Contractual Obligations: The contractual obligations between Dram Oil and Deloitte & Touche, and the extent of Deloitte's liability.
The trial is expected to be closely watched by the business community, given the high stakes involved and the potential implications for auditing firms. The outcome will likely have significant consequences for both parties and may set a precedent for similar cases in the future.
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