Oil giant Trafigura has petitioned Ghana’s Finance Minister, Dr. Mohammed Amin Adam, regarding an outstanding judgment debt.
This warning follows Trafigura’s acquisition of Regina House, a prominent commercial property in London, after the government failed to pay a $134 million judgment tied to a canceled power purchase agreement.
In a recent petition submitted to the Finance Ministry on Monday, 23 September 2024, the company expressed frustration over government’s prolonged delays in settling the matter, demanding immediate payment and warning of potential legal action if their requests are ignored.
The company is also threatening to seize state assets in South Africa if payment is not made as soon as possible.
“As a courtesy, we have enclosed at Annex 1 the filings with this letter as service on the Government of Ghana through diplomatic channels may take some months” some portions of the letter read.
The dispute dates back to a January 26, 2021 ruling by a UK tribunal, which found that Ghana had breached its contractual obligations by terminating its agreement with GPGC, a foreign power company, in 2018.
The tribunal awarded GPGC $134 million in damages, including interest and arbitration fees.
However, despite the tribunal’s directive, the government has only made partial payments, leaving a significant balance unpaid.
Over the past four years, Trafigura has pursued the recovery of this amount, resulting in a U.S. court judgment that added $111.4 million in interest to the original debt.
Ghana’s failure to respond to the U.S. court ruling further complicates the situation, as it resulted in a judgment favouring GPGC based on Ghana’s waiver of sovereign immunity and commitment to international arbitration.
This has intensified the country’s financial obligations, complicating efforts to address the debt.
