Trafigura’s Ghana Power Generation Company (GPGC) has threatened to seize Ghana’s properties in South Africa and the United States of America should the government fail to clear all outstanding debts owed to the power generation company.
In a letter petitioning the Finance Minister Dr. Mohammed Amin Adam and copied Attorney General and Minister of Justice, Mr. Godfred Yeboah Dame, GPCG, indicated that $111 million out of a total of $ 134 million judgement debt awarded four years ago after Ghana abrogated a power purchase agreement, has not been fully paid.
It is recalled that, in August 2024, news of Trafigura’s move to seize Ghana’s facility, the Regina House, located in the United Kingdom, broke out in the media space for defaulting a payment agreement.
However, the allegations was refuted by Ghana’s High Commissioner to the United Kingdom, Papa Owusu Ankomah.
The back story traces to a legal dispute and subsequent judgment made on January 26, 2021, by a UK tribunal. The tribunal issued a decisive final award, concluding that the Ghanaian government had breached its contractual obligations under the power purchase agreement with GPGC.
The contractual breach occurred when the government of Ghana unilaterally terminated the agreement on February 18, 2018. The tribunal resolved that Ghana was liable to pay GPGC a staggering $134,348,661 as an early termination payment.
Government paid $23 million of the debt when the Regina House was seized with a balance of $111 million.
GPCG in its letter to the Finance Minister gave Ghana up to the end of this week to settle debt.
Excerpts of the letter read, “We would nevertheless like to reiterate the message of our previous correspondence, that we would prefer not to take any further enforcement action and instead to resolve the matter amicably by fully executing the settlement agreement, as soon as possible, ideally within this week, and receiving payment in accordance with the agreed schedule.”
Story by: Richard Nana Appiah Kubi/Ahotoronline.com
