Finance Ministry Responds To Trafigura Letter Threatening Seizure Of Ghana's South African Assets
- The finance ministry has denied claims that it has neglected its duty to settle a $134 million judgement debt owed Trafigura
- This was after a leaked letter from Trafigura petitioning the finance ministry to commence settling the debt or have the country's assets seized in South Africa
- The ministry stated that it has already made the necessary arrangements to meet its financial obligations to Trafigura as part of the agreed settlement
The Ministry of Finance has refuted claims that it has not made the necessary arrangements to settle the $134 million judgement debt it owes Trafigura.
The ministry’s statement was in response to a leaked letter from Trafigura petitioning it to commence actions to settle the debt or have the country’s commercial assets in South Africa seized.
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According to Myjoyonline.com, the ministry has already made the necessary arrangements to meet its financial obligations to Trafigura as part of the agreed settlement.
The ministry said ongoing discussions to resolve the impasse should not be misinterpreted as government negligence.
It said it was surprised at the circulation of the letter on social media and urged Ghanaians to disregard any attempts to project the government as negligent of the situation.
The ministry also assured Ghanaians of its commitment to settling the judgement debt and closing the matter promptly to prevent further punitive actions from Trafigura.
The Ministry further urged the public and the media to avoid jumping to conclusions based on incomplete information.
Trafigura to seize Ghana’s commercial assets
Trafigura threatened to seize Ghana’s assets in South Africa if the government fails to settle the debt as soon as possible.
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, the government’s refusal to play ball has left it no choice but to take this route.
It 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
YEN.com.gh reported that 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 and was awarded $134,348,661 in damages.
Proofread by Edwina N.K Quarcoo, journalist and copy editor at YEN.com.gh.
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Source: YEN.com.gh
