Judgement Debt: Trafigura Threatens To Seize Ghana's Properties In South Africa If Debt Not Settled
- Energy firm Trafigura has written to the Finance Minister, Dr Mohammed Amin Adam, informing him of its plans to seize Ghana's properties in South Africa
- This follows Ghana's failure to settle a $134 million judgment debt it owes the company after terminating a power purchase agreement
- The company has warned that should the government continue to stall, it would implement further punitive actions against the country
Oil conglomerate Trafigura has petitioned Ghana’s Finance Minister, Dr Mohammed Amin Adam, regarding a judgment debt the Ghanaian government owes.
Trafigura has threatened to seize Ghana’s assets in South Africa if the government fails to settle the debt as soon as possible.
Source: Getty Images
The threat comes barely a month after Trafigura took possession of Regina House, one of Ghana’s key commercial properties in London, and placed it under receivership after the government failed to settle the $134 million judgment debt.
In its petition to the government, the energy firm notified the Finance Minister that it had filed the relevant papers to commence the enforcement of the arbitral awards in South Africa.
It also noted that it plans to issue several subpoenas to US-based corporations with ties to the government of Ghana later this week, with further action to follow at the appropriate time.
According to Trafigura, while it would have preferred to settle the debt amicably, however, the government’s refusal to play ball has left it no choice but to take this route.
It has urged the government to fully execute the settlement agreement this week and initiate payments according to the agreed-upon schedule.
The origins of the Trafigura debt
The Trafigura debt arose from the termination of a power purchase agreement between the Ghana Power Generation Company (GPGC), a subsidiary of Trafigura and the Ghanaian government.
The contract termination led to a long-drawn legal dispute between Trafigura and the Ghanaian government.
On January 26, 2021, a UK Tribunal ruled that Ghana breached its contractual obligations by terminating the power purchase agreement with GPGC in 2018.
According to JoyNews, Trafigura was awarded $134,348,661 in damages, which were calculated using an Early Termination Payment formula.
Despite the ruling, Ghana only made partial payments totalling $1,897,692.40, leaving a significant outstanding balance.
The Ghanaian government’s reluctance to cooperate with GPGC led to a second court case in the US on January 19, 2024, under the New York Convention.
Trafigura sought to recover the compounding debt.
The US court awarded the company an additional $111.4 million in interest, which remains unpaid.
Ghana faces another judgement debt
IN 2021, YEN.com.gh reported that Ghana was facing another judgment debt of over 70 million dollars, to be paid to West Africa Gas Limited (WAGL) following a London Court of Arbitration ruling.
According to a Starr News report, the court awarded against the government of Ghana a sum of US$ 68,584,623.37 with interest.
In its ruling, the court asked the Government of Ghana to pay a lump sum of over $ 68 million, including interests and other costs.
Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh
New feature: Сheck out news that is picked for YOU ➡️ click on “Recommended for you” and enjoy!
Source: YEN.com.gh
