Oil conglomerate Trafigura has petitioned Ghana’s Finance Minister, Dr. Mohammed Amin Adam, over an judgment debt by the government, threatening to seize Ghana’s assets in South Africa if the debt remains unsettled.
The company has already taken control of one of Ghana’s key commercial properties, Regina House in London, after the government failed to pay a $134 million judgment debt.
This debt arose from the termination of a power purchase agreement, which led to a legal dispute between Trafigura and the Government of Ghana.
For four years, Trafigura has unsuccessfully sought payment from the government, prompting it to secure a U.S. court judgment that awarded the company an additional $111.4 million in interest, which remains unpaid.
In its petition, the energy firm requested an immediate settlement and warned of further legal action to recover the funds if the government fails to comply.
The petition was submitted to the Finance Ministry on September 23, expressing frustration over the government’s delay in resolving the debt, despite multiple attempts at negotiation.
The origins of the debt date back to January 26, 2021, when a UK tribunal ruled that Ghana breached its contractual obligations by terminating a power purchase agreement with GPGC, a foreign power company, in 2018.
The tribunal awarded GPGC $134 million in damages, including interest and reimbursement of arbitration fees. Despite the ruling, Ghana made only partial payments, leaving a substantial balance outstanding.
In January 2024, GPGC filed a case in the U.S. District Court, seeking to recover the remaining debt under the New York Convention.
Ghana was served with the petition but failed to respond by the deadline. The court, citing Ghana’s waiver of sovereign immunity and commitment to international arbitration, ruled in favor of GPGC.
The court’s decision added post-judgment interest to the financial burden on Ghana, further complicating the country’s efforts to resolve the debt.
Source: Myjoyonline.com
