According to recent reports, the oil trading company Trafigura has threatened to take and auction off multiple Ghanaian assets in London including the Ghana High Commission to satisfy a $140 million judgment debt, shocking both Ghana’s diplomatic and business circle
The properties at risk include the Ghana High Commission’s building, which offers essential services such as visa issuance, the commissioner’s residence and the Ghana International Bank building, among others.
These properties are now at the centre of a legal battle as Trafigura seeks to enforce the judgment debt awarded to them.
The judgment debt, totaling approximately $140 million, stems from a written agreement for the installation and operation of two power plants. Ghana’s unilateral termination of the agreement before the terms were fulfilled resulted in this hefty financial penalty.
In response to these developments, Deputy Attorney General Alfred Tuah-Yeboah has urgently called on the Finance Ministry to take swift action.
He stressed that failure to do so may result in the loss of these properties, which are critical for Ghana’s diplomatic representation and services in the United Kingdom.
The Attorney General’s office had previously initiated discussions with the Ministry of Finance to settle the debt, but despite partial payments being made, Ghana failed to adhere to the agreed payment plan. As a result, Trafigura moved forward with the enforcement of the judgment, leading to the attachment of Ghana’s properties in the UK.
Efforts to challenge the legal process have thus far been unsuccessful, with the High Court in England ruling that the service of legal documents was properly executed.
Consequently, the Ministry of Finance is now advised to renew negotiations with the judgment creditors to find a resolution and fulfill the financial obligations.
The legal dispute between Ghana and Trafigura dates back to January 26, 2021, when Trafigura obtained a final award in its favour in arbitral proceedings in England. The award was linked to the terminated power plant agreement, and it amounted to approximately $140 million.
Ghana’s attempts to challenge the enforcement of the award were met with deadlines and legal procedures. After initial attempts to set aside the order were dismissed, the situation escalated as Trafigura moved to obtain charging orders against the London properties in which Ghana had an interest.
Despite further legal wrangling, Ghana’s objections to the charging orders were unsuccessful, and on August 2, 2023, Trafigura escalated the situation by applying for a receivership order related to Ghana’s leasehold interest in one of the London properties.
