Ghana Slapped With Over $111 Million Judgment Debt In Power Deal Case Against Trafigura
- A US court has granted a judgment in favour of the Ghana Power Generation Company, a subsidiary of Trafigura
- Ghana has been ordered to pay $111,493,828.92 with interest to the multinational company
- Trafigura sued the Ghana government for terminating two power deals in 2021 and was awarded a judgment debt of some $140 million
A US court has granted a judgment favouring the Ghana Power Generation Company (GPGC), ordering the Ghana government to pay $111,493,828.92 with interest.
This ruling followed Ghana's failure to fully comply with an earlier tribunal decision from the UK.
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Joy News reported that the case dates 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 subsidiary of international firm Trafigura, on February 18, 2018.
Trafigura sued the government for terminating two power deals. It was awarded $134,348,661 in damages, which were calculated using an Early Termination Payment formula.
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Despite the ruling, Ghana only made partial payments totalling $1,897,692.40, leaving a significant outstanding balance.
IMANI Africa honorary vice president Bright Simons cited delay tactics by Attorney General Godfred Dame in handling the case.
After Ghana did not cooperate, GPGC went to a US court on January 19, 2024, under the New York Convention, seeking to recover the compounding debt.
The US court had jurisdiction over the case because the New York Convention recognises UK arbitral awards.
Trafigura moves to seize Ghana's properties in UK
Trafigura, an oil trading firm, could seize some of Ghana's property in the UK to defray the judgment debt.
The Ghana International Bank building in the UK is part of properties at risk of being sold because of the judgment debt.
The Deputy Attorney General, Alfred Tuah-Yeboah, urged the finance ministry to treat the issue with urgency when commenting on Joy News' topic.
He said the finance ministry was working on an agreement to plot a payment plan for the debt.
Judgement debt due West Africa Gas Limited
YEN.com.gh reported that a London Court of Arbitration ordered the government to pay West Africa Gas Limited over $70 million.
The government was ordered to pay the money to the company after it terminated its gas sales agreement with Ghana on October 9, 2015, for what it says were roadblocks created by the former.
Proofread by Edwina N.K Quarcoo, journalist and copy editor at YEN.com.gh.
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Source: YEN.com.gh
