TIG Post

Tag: Judgement debt

  • Ghana risks losing assets in SA over offsetting $134m Trafigura judgement debt

    Ghana risks losing assets in SA over offsetting $134m Trafigura judgement debt

    Oil conglomerate Trafigura has petitioned Ghana’s Finance Minister, Dr. Mohammed Amin Adam, over a judgment debt owed by the government, threatening to seize Ghana’s assets in South Africa if the debt remains unsettled.

    In its petition submitted on September 23, the energy firm requested an immediate settlement and warned of further legal action to recover the funds if the government fails to comply.

    The petition expresses frustration over the government’s delay in resolving the debt, despite multiple attempts at negotiation.

    “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,” the letter read.

    Per the letter in question, it is not public knowledge of the exact assets in South Africa that the company seeks to secure.

    Reports indicate that Ghana’s Regina House in London, one of the nation’s key commercial properties, has been taken over by Trafigura’s Ghana Power Generation Company (GPGC) due to the government’s failure to settle a $134 million judgment debt.

    This development follows a prolonged four-year effort by Trafigura to recover funds after Ghana abruptly terminated a power purchase agreement with the energy firm. Despite repeated attempts to secure payment, Trafigura was forced to obtain a ruling from a U.S. District Court, which added $111.4 million in mandatory interest to the arrears, compounding Ghana’s debt and exacerbating its financial obligations.

    Bright Simons, the Vice President of Imani Africa, revealed on the social media platform X (formerly Twitter) that Regina House has been placed under receivership by Trafigura, an assertion later confirmed by Joy News. Simons claimed that this information had been concealed by the Ghanaian government, stirring further controversy.

    In an interview with Joy News, Ghana’s High Commissioner to the United Kingdom, Papa Owusu-Ankomah, acknowledged that Trafigura will remain in control of Regina House until the full debt is settled.

    He urged for renewed negotiations to avoid further financial penalties, stating, “Until we pay in full or come into an arrangement to pay them, Trafigura will remain in control over the receivership of the Regina House and its proceeds.” He also admitted that Ghana is facing severe financial challenges.

    The legal dispute began on January 26, 2021, when a UK tribunal awarded GPGC $134.3 million after determining that Ghana had breached its contractual obligations by terminating a power purchase agreement on February 18, 2018.

    Although Ghana argued that GPGC failed to meet certain contractual conditions, the tribunal disagreed, awarding GPGC damages based on an Early Termination Payment formula. The tribunal’s award included an interest rate of six-month USD LIBOR plus 6% and reimbursement of GPGC’s arbitration costs amounting to $3.3 million. Although Ghana made partial payments totaling $1.89 million, a significant balance remains unpaid.

    In a bid to recover the remaining funds, GPGC filed a case in the U.S. District Court in January 2024 under the New York Convention, seeking to enforce the arbitral award. Ghana failed to respond to the court’s petition and missed the March 29, 2024 deadline, leading to a ruling in GPGC’s favor.

    Chief Judge James E. Boasberg confirmed that the U.S. court had jurisdiction under the New York Convention, which requires member states to recognize and enforce arbitral awards, regardless of location or nationality.

    While the U.S. court did not grant pre-judgment interest, it awarded post-judgment interest at a rate specified under U.S. law, further increasing Ghana’s financial burden. As a result, Trafigura now controls Regina House until Ghana can resolve the debt crisis.

  • Ghana to settle $111m judgment debt owed to Singapore’s Trafigura over GPGC Deal – U.S. court

    Ghana to settle $111m judgment debt owed to Singapore’s Trafigura over GPGC Deal – U.S. court

    A District of Columbia Court in the United States, which granted a Motion for Default Judgment in favor of Ghana Power Generation Company (GPGC), has directed government to pay $111,493,828.92 together with obligatory post-judgment interest

    This ruling was necessitated by Ghana’s disregard for a previous tribunal verdict from the United Kingdom

    In the aftermath of Ghana’s termination of a power purchase deal with Ghana Power Generation Company (GPGC) on February 18, 2018, a UK tribunal discovered in its Final Award, on January 26, 2021, that Ghana had breached it contractual obligations.

    Ghana stated that the contract was terminated because the foreign power company failed to meet certain contractual obligations.

    However, the tribunal disagreed and awarded GPGC $134,348,661 in damages, calculated using the Early Termination Payment formula outlined in the purchase agreement.

    The award also includes reimbursement of GPGC’s arbitration costs and expenses totaling $3,309,877.74, with interest at the three-month USD LIBOR rate, compounded quarterly, and an additional interest rate of six-month USD LIBOR + 6%.

    After unsuccessful attempts to collect the outstanding payment from Ghana, GPGC filed a lawsuit on January 19, 2024, in the U.S. District Court, seeking recovery of the growing debt under Chapter 2 of the Federal Arbitration Act and the New York Convention.

    Court records show that Ghana’s Minister of Foreign Affairs and Regional Integration, Shirley Ayorkor Botchwey, was served with the petition from the U.S. court on January 23, 2024.

    The signed certification of receipt indicated that the documents were delivered to Ghana on January 29, 2024.

    Despite this, Ghana did not appear in court or respond by the March 29, 2024, deadline.

    The court ruled that it had jurisdiction over the case, citing the New York Convention, which the United States has adopted and which recognizes arbitral awards made in the United Kingdom.

    The court also noted that in the power purchase agreement, Ghana had agreed to submit to international arbitration and had explicitly waived its sovereign immunity, according to a report by adomonline.com.

    In his memorandum ruling dated August 6, 2024, Chief Judge James E. Boasberg emphasized that the arbitral award between the non-U.S. parties stemmed from a commercial transaction, which is governed by the New York Convention.

    The Convention requires member states to recognize and enforce such awards, regardless of the parties’ nationality or residence.

    Although the judge did not grant GPGC pre-judgment interest, Ghana will still face a financial burden due to the court’s award of post-judgment interest at the rate specified by U.S. regulations.

  • Asamoah Gyan has 30 days to pay 50% of GH₵1 million judgment debt – Court orders

    Asamoah Gyan has 30 days to pay 50% of GH₵1 million judgment debt – Court orders

    Former Black Stars captain, Asamoah Gyan, has been instructed by the High Court in Accra to settle 50% of the over GH₵1 million judgment debt awarded against him within 30 days as compensation for malicious prosecution.

    This ruling followed Gyan’s plea for a stay of execution as he pursued an appeal against the judgment, which was granted by Justice Ernest Owusu-Dapaa.

    The judgment, issued on December 8, 2023, stemmed from a case of malicious prosecution brought against Gyan by entertainment journalist, Osarfo Anthony, who was awarded damages exceeding GH₵1 million.

    Nearly five months after the judgment, Gyan and his legal team filed for a Stay Execution and appealed the ruling.

    On May 8, 2024, Justice Owusu-Dapaa, after hearing arguments from both sides, approved Gyan’s request for a stay of execution pending appeal, with the condition that he pays half of the judgment debt before the appeal.

    The Court stipulated that the payment must be made to the court’s registrar within 30 days from May 8, excluding weekends and public holidays, and directed the registrar to invest the sum in the government 182 days treasury bill until the appeal’s resolution.

    Bench ruling

    In his bench ruling, Justice Owusu-Dapaa, a Justice of the Court of Appeal serving as an additional High Court judge, instructed the Registrar to invest the bond in the government of Ghana’s 182-day Treasury Bill, with a rollover basis until the appeal is decided.

    “I have internalized the submission made viva voce at Bar and also critically reflected on the depositions in the affidavit in support and affidavit in opposition the Court is satisfied that there are special or exceptional circumstances when both affidavits are globally considered and properly contextualized against the exhibits especially the notice of appeal, judgment, witness statement among others.

    “I will grant the stay of execution of judgment dated 8th December 2023 on terms which are;

    “That the 1st Applicant (Asamoah Gyan) should deposit fifty percent (50%) of the total judgment debt in Court through the registry and the registry is ordered to invest the fifty percent (50%) of the judgment debt in Government of Ghana 182 days Treasury Bill on rollover basis until the appeal is finally determined.

    “It is a well-considered view of the Court that the grant of the stay on terms is fair to both parties.

    “In the case of 1st Applicant, a world-class professional player who was earning excess of USD million, when he succeeds on appeal, he will not have to worry about inadequate means of Respondent who is said to earn GH¢1,000.00 when the incident occurred to refund the judgment debt were it to be executed.

    “The Respondent on the other hand also is saved from the risk of the 1st Applicant, a world-class professional player who was earning excess of USD million, being unable to pay the judgment debt should he lose the appeal, particularly so when the Court has not been given his current state of inabilities and other encumbrances that may exist in respect of his assets,” the Court ordered.

    30 days ultimatum

    The Court also said, “Having heard counsel for Applicants and Respondent, the Court further orders the 1st Applicant (Asamoah Gyan) to comply with the order for paying fifty percent (50%) of the judgment debt aforesaid within thirty days (30) from today (May 8) excluding weekends and any public holiday.

    The Court said, in the event of default, “Plaintiff/Respondent/Respondent may go into full execution of the judgment debt.”

    Background

    It would be recalled that Asamoah Gyan and his manager, Samuel Anim Addo, had caused the arrest and prosecution of Osarfo Anthony and others for extortion.

    Following their acquittal and discharge, in action involving an alleged rape incident between the former Black Stars skipper and one Sarah Kwablah, Osarfo Anthony and his lawyers sued for malicious prosecution.

    Osarfo Anthony in his civil action against Asamoah Gyan and his manager Anim Addo demanded compensation in the sum of GH¢1 million.

    On December 8, 2023, Justice Ernest Owusu Dapaa held that the Plaintiff had been able to prove his case that he was maliciously prosecuted.

    The Court held that the report made by the Manager of Gyan, Samuel Anim Addo to the Airport Police was based on “falsehoods.”

    The Court said that the report to the Police was rather made to protect Asamoah Gyan’s image because at the time he was negotiating a transfer to a Chinese club.

    The Court said available evidence to the court showed that the Plaintiff was never extorting money from Gyan when the report was made for his arrest over an alleged publication.

    Justice Dapaa said, the Plaintiff discharged the burden of proof and held that the manager of Asamoah Gyan set the whole malicious prosecution in motion.

    Damages

    Consequently, the Court issued a judgment totaling GH¢900,000 in damages to the Plaintiff. Additionally, the plaintiff was awarded GH¢111,000 to compensate for the 111 months of lost income from his GH¢1,000-per-month job at the time.

    Furthermore, a cost of GH¢60,000 was imposed on Asamoah Gyan and his manager, Samuel Anim Addo, bringing the total judgment against the defendants to GH¢1,071,000.

  • Govt faces potential $3.6bn judgment debt over cancelled Boankra terminal contract – Ablakwa alleges

    Govt faces potential $3.6bn judgment debt over cancelled Boankra terminal contract – Ablakwa alleges

    Samuel Okudzeto Ablakwa, the Member of Parliament for North Tongu, has raised concerns about a looming $3.6 billion judgment debt facing the Ghanaian government.

    This debt arises from the cancellation of a contract for the construction of the Boankra Integrated Logistics Terminal (BILT) in the Ashanti Region.

    Ablakwa alleges that the Minister for Transport, Kwaku Ofori Asiamah, disregarded a parliamentary resolution for the construction of the $330 million terminal. Moreover, Asiamah terminated the concession agreement without seeking approval from parliament.

    The MP shared these claims in a post on X on Tuesday, April 16, 2024. He asserts that the transport minister failed to justify his actions to the Attorney General, even after being asked to respond to a petition regarding the deal. As a result of Asiamah’s actions, the country now faces the threat of a $3.6 billion judgment debt.

    “The President’s sod cutting came after Parliament on the 14th of August, 2020 approved by resolution a Build, Operate and Transfer (BOT) Concessionary Agreement between the Government of Ghana and Ashanti Port Services Limited (a consortium of Afum Quality Ltd Ghana and DSS Associates of South Korea) for an amount of US$330,000,000.00 for the development of the Boankra Integrated Logistics Terminal.

    “Documents I have intercepted from multiple official sources reveal that this parliamentary resolution has been flagrantly and violently flouted, particularly, by the Minister responsible for Transport, Hon. Kwaku Ofori Asiamah,” he said.

    The MP added, “The transport minister after unanimously altering the parties to the parliamentary resolution without recourse to Parliament has subsequently proceeded to terminate the concession agreement, also without the consent nor approval of Parliament. This termination supposedly took effect from 5th August 2023.”

    Ablakwa further claimed that Ofori Asiamah, without parliamentary approval, transferred the $330 million Boankra terminal contract to another company, Justmoh Construction Limited.

    “The intercepted documents in my possession also confirm that the Transport Minister has in addition to all his rambo-style illegalities ensured that payment of a colossal US$33,300,000.00 equivalent to a staggering GHS449.5million has been made under extremely dubious circumstances to the Minister’s handpicked company — Justmoh Construction Limited.”

    He added, “Further investigations reveal that Justmoh was selected and paid over GHS400 million without regard to the procurement laws of Ghana.”

    The MP disclosed alleged documents regarding the termination of the contract and the subsequent re-award for the terminal’s construction.

    View the MP’s full post plus the documents below:

    THE BOANKRA LOOTING DISASTER AND THE LOOMING US$3.6BILLION JUDGEMENT DEBT
    [PART 1]

    Why is the Akufo-Addo/Bawumia government engaged in another round of sleazy recklessness which would potentially saddle Ghana with a scary judgement debt of some US$3.6billion?

    On the 5th of November, 2020, President Nana Addo Dankwa Akufo-Addo cut sod for construction of the $330 million Boankra Integrated Logistics Terminal (BILT) in the Ashanti Region.

    The President at the sod cutting assured the nation, including His Royal Majesty, Otumfuo Osei Tutu II who was the special guest of honour that the Boankra project will be completed in 2023.

    The President’s sod cutting came after Parliament on the 14th of August, 2020 approved by resolution a Build, Operate and Transfer (BOT) Concessionary Agreement between the Government of Ghana and Ashanti Port Services Limited (a consortium of Afum Quality Ltd Ghana and DSS Associates of South Korea) for an amount of US$330,000,000.00 for the development of the Boankra Integrated Logistics Terminal. (See parliamentary resolution attached).

    Documents I have intercepted from multiple official sources reveal that this parliamentary resolution has been flagrantly and violently flouted, particularly, by the Minister responsible for Transport, Hon. Kwaku Ofori Asiamah.

    The Transport Minister after unanimously altering the parties to the parliamentary resolution without recourse to Parliament has subsequently proceeded to terminate the concession agreement, also without the consent nor approval of Parliament. This termination supposedly took effect from 5th August, 2023. (See confirmation of Minister’s termination attached).

    The Minister for Transport’s preference for a company known as Justmoh Construction Limited which is unknown to Parliament under the approved BILT resolution is most bizarre.

    All parties have informed me, without contradiction, that Justmoh Construction Limited was a direct imposition by the Transport Minister. I have seen board minutes to this effect.

    The stark irony is that this is the same government currently prosecuting the Hon. Collins Dauda, Hon. Dr. Kweku Agyeman-Mensah and others for allegedly reviewing a parliamentary resolution on the Saglemi Housing Project without an amendment or approval by Parliament.

    Why is the Transport Minister, regardless of ongoing prosecutions of political opponents, unilaterally amending and disregarding a parliamentary resolution with utter impunity?

    Tomorrow is indeed pregnant.

    The intercepted documents in my possession also confirm that the Transport Minister has in addition to all his rambo-style illegalities ensured that payment of a colossal US$33,300,000.00 equivalent to a staggering GHS449.5million has been made under extremely dubious circumstances to the Minister’s handpicked company — Justmoh Construction Limited. (More details on this in Part 2)

    Further investigations reveal that Justmoh was selected and paid over GHS400 million without regard to the procurement laws of Ghana.

    Indeed, the Transport Minister concedes in his termination confirmation letter of November 21, 2023 that he will now ensure “Ghana Shippers takes the necessary processes to regularize the re-engagement” of Justmoh.

    As could be predicted, these grave violations have now become the subject of fierce internal wrangling with the parties (Ashanti Port Services Limited and the Minister’s Justmoh Construction Limited) currently slugging it out at Arbitration.

    Further checks establish that the Transport Minister has been unable to justify his actions as a request from the Attorney General to him to respond to a petition against the Transport Minister’s conduct dated December 19, 2023 remains contemptuously ignored. (See Attorney General’s letter attached).

    Meanwhile, it has also emerged through additional documentation I am reviewing that the preparatory works carried out by the Transport Minister’s handpicked company, Justmoh, do not guarantee value for money. Consistent with the pattern of inflationary opaque costing under this administration, US$36,222,140.64 is the bill for payment with even more payments being requested. (This latest “create, loot and share” scheme will be explored in much detail later).

    Work on the strategic Boankra Integrated Logistics Terminal (BILT) project has now come to a halt because of the self-inflicted mess created by the Akufo-Addo/Bawumia government. (See letter from Justmoh’s lawyers confirming challenges with continuing the project, as attached).

    Field inspection confirms that all works on the Boankra site have come to a halt.

    Instead of Ghana and the good people of the Ashanti Region finally accomplishing the long-awaited dream of Boankra to spur industrialization and job creation, we are ending up with an abandoned project, avoidable litigation and a looming judgement debt of US$3.6billion as Ashanti Port Services Limited is demanding. A totally avoidable massive financial loss to the state.

    NPP insiders familiar with this latest scandal say the Boankra Looting Disaster just like the infamous Akufo-Addo’s Cathedral Project missed out and were not trackable by government’s recently launched performance tracker because of the embarrassing levels of shadiness, arm-twisting and greed; and this is despite the President’s promise before the venerable Otumfuo of a 2023 completion.

    What at all can this government get right?

    On Thursday, I shall be back with Part 2.

    For God and Country.

    Ghana First.

  • My office saved Ghana GHC15 trillion judgement debt – Attorney General

    My office saved Ghana GHC15 trillion judgement debt – Attorney General

    The Attorney General and Minister for Justice, Godfred Yeboah Dame, has reiterated President Akufo-Addo’s claim that his office saved Ghana from paying over GH¢10 trillion in judgment debts.

    During his State of the Nation Address in Parliament on Tuesday, February 27, 2024, President Akufo-Addo commended Attorney General Godfred Yeboah Dame for effectively continuing the tradition of contesting every civil litigation against the state, thereby avoiding numerous judgment debts that were previously awarded against the state.

    “The Office, as a result, has saved the country over GH¢10 trillion,” he disclosed and attracted jeers from some Members of Parliament.

    Mr. Dame revealed that the President’s mention of GH¢10 trillion was actually an understatement, as his office had saved the country approximately GH¢15 trillion in judgment debts claimed by various entities against the government.

    Mr. Dame presented evidence to illustrate how his office had saved the country from substantial judgment debts. He highlighted an instance where a garnishee order signed by Justice Emmanuel K. Mensah awarded a judgment debt of over GH¢10 trillion against the state in favor of African Automobile Limited.

    This debt, accrued between 2009 and 2011, initially amounted to just over GH¢900,000 but grew to over GH¢10 trillion due to compound interest components.

    The Attorney General’s office contested this judgment debt, citing fraud and misrepresentation in the Court of Appeal’s decision. This case was a key factor in the introduction of a bill to abolish compound interests in government contracts, ensuring that all agreements are based on simple interest.

    Another case involved a claim of over GH¢500 billion by African Automobile Limited against the Accra Metropolitan Assembly and the Attorney General, seeking a total judgment debt of GH¢582,001,748,751.00 against the state. Through legal intervention, the Attorney General successfully reversed garnishee orders on bank accounts and had many cases dismissed.

    Additionally, the Attorney General successfully handled a judgment debt claim by China Jilin International Economic and Technical Corporation against the Ministry of Roads and Transport and the Attorney General, which initially totaled GH¢352,626,144.41 and $988,294,313. These claims were reversed or significantly reduced.

    Furthermore, in the NDK Financial Services case, the Attorney General saved the country from paying GH¢1,297,985,310.26 as outstanding judgment debt, reducing the amount to GH¢14,689.75 based on the Supreme Court’s judgment.

    In international arbitrations, the Attorney General also saved the country $300 million, $60 million, and $15.7 million, respectively.

    Considering these cases collectively, Mr. Dame believed he was justified in informing the President that his office had saved the nation over GH¢10 trillion in judgment debts. He emphasized that the issuance of judgment debts had become a means of exploiting the state, leading to his proposal to abolish compound interest in state contracts.

  • Breakdown of GHC300M judgment debt paid from 2017-2022 under Akufo-Addo gov’t

    Breakdown of GHC300M judgment debt paid from 2017-2022 under Akufo-Addo gov’t

    The Ministry of Finance revealed significant figures regarding judgment debt payments made by the government between 2017 and 2022 in response to a Right to Information (RTI) request filed by JoyNews.

    Documents provided in a letter dated August 2023 showed that a total of GH¢300,385,317.52 was disbursed during this period.

    The documents indicate that payments were made to over 70 individuals and entities, showing a broad distribution of funds among various recipients. Notable beneficiaries include companies such as NDK Financial Services, Vacuum Salt Products, Balkan Energy, and several others.

    Here is the breakdown of payments by year and recipient:

    2017

    • Albert Osei – GH¢279,412.83
    • Daniel Nii Quartey and John Addai – GH¢35,300
    • Madam Martha Wood – GH¢306,800
    • NDK Financial Services Limited – GH¢29,510,855.06
    • NDK Financial Services Limited – GH¢20,000,000
    • Moses K. Yeboah – GH¢157,596.91
    • Asmona Limited – GH¢2,400,000
    • Yaw Eliasu & 57 Others – GH¢502,025.61
    • Vacuum Salt Products Limited – GH¢57,202,751

    2018:

    • M/S Jubilee Tractors and Assembly Plant Ltd – GH¢30,912,310.44
    • Benjamin Osei Afeng – GH¢26,568
    • Francis Donkor – GH¢23,775
    • W.O.1 (Rtd) Adjei Boadi – GH¢92,373
    • Ex-Workers of the SFC – GH¢891,002.50
    • Richard Peprah – GH¢290,000
    • Stephen Arthur – GH¢800,000
    • J.W.K. Asigbe & 22 Others – GH¢2,134,757.28
    • Felix Kwame Ferka – GH¢49,541
    • NDK Financial Services – GH¢50,000,000
    • Balkan Energy Limited – GH¢67,023,490.17
    • M/S Electrical Engineering – GH¢850,000

    2019:

    • First Love Church – GH¢136,500
    • Benedicta Tamakloe – GH¢2,550
    • Nana Yaw Agyei – GH¢1,020
    • Mr. & Mrs. George Williams – GH¢7,142.55
    • Chude Mba – GH¢3,771,957.26
    • Madam Theresa Tinkorang – GH¢3,510,000
    • State Housing Company Ltd – GH¢143,677
    • Samuel Adumoah Okwei and 2 Others – GH¢808,169.81
    • Ideal Finance Limited – GH¢5,412,279.60
    • Nana Namoakah Arizie III – GH¢176,500

    The disbursements ranged from a few thousand cedis to over GH¢50 million, with the highest amounts predominantly allocated to corporate entities.

    Supplementary-Annex-JD-RTIDownload
  • You are ‘ill-informed’ on $140m Trafigura judgement debt – Boakye Agyarko tells Kwabena Donkor

    You are ‘ill-informed’ on $140m Trafigura judgement debt – Boakye Agyarko tells Kwabena Donkor

    Former Energy Minister Boakye Agyarko has vehemently expressed his disapproval of remarks made by former Minister of Power, Dr. Kwabena Donkor. Dr. Donkor with regards to the recent $140 million judgment debt the country is dealing with.

    The termination of an agreement between Ghana Power Generating Company (GPGC) and the New Patriotic Party (NPP) administration, led by then-Energy Minister Boakye Agyarko has resulted in a judgment debt of $140 million awarded to Singaporean firm Trafigura, the majority owner of GPGC.

    Dr Donkor, in his comments, suggested that a thorough investigation should be conducted into all officials from the New Patriotic Party (NPP) administration who played a role in the termination of the power purchase agreement with the Ghana Power Generating Company (GPGC).

    “It was very avoidable as I have always said. Let me quickly say this. This was the cheapest of all the emergency power plants in terms of cost. It was also the shortest because it was for four years. There was no requirement for the government of Ghana to put down a guarantee, and then again the total capacity charge made of capital recovery, fixed ONM, and non-fuel variable ONM came to 4 cents per kilowatt hour. It was the cheapest at the time of all the emergency power plants we brought in, and so it couldn’t have been on the basis of cost.”

    Dr. Kwabena Donkor further clarified that the government’s assertion that GPGC failed to obtain siting and construction permits is not a valid argument. He explained that the responsibility for obtaining these permits was shared between the state and the company, as outlined in the contract.

    Reacting to his statements, Mr Agyarko expressed his disappointment with Dr. Donkor’s comments, deeming them “unfortunate and ill-informed.”

    Mr Agyarko clarified the circumstances surrounding the decision to review the Power Purchase Agreements (PPAs), emphasizing that “Upon assumption of office, the newly elected NPP government decided to take all the necessary actions to contain the cost of power generation and distribution in Ghana. It became necessary to review the implementation of the many Power Purchase Agreements (PPAs) because should all of them be implemented as originally scheduled, it would result in the production of excess energy with its attendant cost, which would worsen the financial situation of the power sector. The review was therefore to help cut back on losses that would be incurred.”

    In a statement, he added: “An Inter-Ministerial Committee was set up under the chair of the Energy Commission to review the fiscal and legal implications of Power Purchase Agreements (PPAs) executed by the Electricity Company of Ghana (ECG). The eighteen (18) member committee was chaired by Dr. Alfred Ofosu Ahenkora, Executive Secretary of the Energy Commission. Its report was submitted on 5th April, 2019 under ref EC/MOE/17.

    “The report was subsequently put before Cabinet for consideration and action. Cabinet directed that the report be further reviewed by the Attorney-General. This was done. Cabinet subsequently gave its approval for the recommendation of the report to be implemented.”

  • Oil giant goes after Ghana govt’s properties in London to settle $140m judgment debt 

    Oil giant goes after Ghana govt’s properties in London to settle $140m judgment debt 

    Oil trading firm Trafigura is taking steps to seize and auction various properties belonging to Ghana located in the United Kingdom.

    These properties, including the Ghana High Commission’s building, the commissioner’s residence, and the Ghana International Bank building, are at risk of being sold to offset a $140 million judgment debt awarded to Trafigura.

    The judgment debt arose from a written agreement related to the installation and operation of two power plants, which Ghana unlawfully terminated before fulfilling the agreed terms.

    The Deputy Attorney General, Alfred Tuah-Yeboah, in an interview on JoyNews over the weekend emphasized the urgency of the Finance Ministry’s action to avoid the loss of these properties.

    He also highlighted that the Attorney General’s office had taken measures to address the judgment case against the state and urged the Ministry of Finance to settle the debt promptly.

    He added that the “Finance Ministry then entered into agreement with the judgement creditors as to how the state was going to pay this judgement debt of about $140 million.”

    He pointed out that while a partial payment was made, the state failed to uphold its commitment to adhere to the agreement.

    “Having failed to do so, the judgement creditor decided to execute the judgement. They attached property belonging to the Republic in the UK, and then they sought to serve us with that process. We then filed a motion trying to set aside the process through which we were served but the High Court in England said no, and that the service on us [state] was properly made. So now, the Ministry of Finance has been advised to once again approach the judgement creditors and make every effort to pay that money,” he explained.

    Background

    On January 26, 2021, Trafigura obtained a final award in its favor against the government of Ghana through arbitral proceedings in England.

    The award of approximately $140 million stemmed from a written agreement for the installation and operation of two power plants. Ghana had prematurely terminated this agreement before the terms were provided.

    On November 4, 2021, the Court granted Trafigura permission to enforce the award, treating it as if it were a judgment of the High Court. Service was carried out within the stipulated timeframe, with a deadline for contesting the order set at two months and 22 days after service. The deadline date was August 1, 2022, which Ghana later met.

    On May 17, 2022, Trafigura applied for charging orders on five London properties in which Ghana held a freehold or leasehold interest. On the same day, the company filed an application for alternative service. On April 28, 2023, an order was issued allowing alternative service on Ghana. Trafigura served the Interim Charging Orders (ICOs), the order, and related documents via email on May 5, 2023.

    In response, a legal counsel at the Ministry of Finance acknowledged receipt of the documents through email. On May 24, 2023, White and K, acting for Ghana, indicated their expectation to receive instructions from Ghana and proposed to agree on a revised timetable for Trafigura’s applications. However, on May 30, 2023, the hearing was adjourned by consent.

    On June 23, 2023, Ghana applied to set aside the order, citing that Trafigura had been required to serve not only the order but also the application for the charging orders and the ICOs themselves through diplomatic channels. Subsequently, Ghana filed objections on July 21, 2023, regarding the finalization of the ICOs.

    However, on August 2, 2023, Trafigura sought a receivership order in relation to Ghana’s leasehold interest in one of the London properties.

  • GPGC Power Deal: Ghana’s London properties may be confiscated to settle $140m judgement debt – Report

    GPGC Power Deal: Ghana’s London properties may be confiscated to settle $140m judgement debt – Report

    A report from the Global Arbitration Review indicates that Ghanaian state properties in London could face confiscation by a Trafigura subsidiary to settle a US$140 million judgement debt.

    This follows a court ruling that exempted the state from being served with interim charging orders through diplomatic channels.

    In the United Kingdom, the High Court dismissed the Government of Ghana’s objection regarding the procedures used to serve proceedings related to a judgment debt claim by GPGC, a subsidiary of the international commodities company, Trafigura.

    A UK court handed the corporation a judgment debt of US$140 million after it sued the Ghanaian government over the cancellation of two power transactions.

    Ghana argued, however, that despite a decision allowing them to employ other services, the corporation was still required by law to serve the government through diplomatic channels.

    Ghana’s attempt to use the State Immunity Act’s provisions as justification for not allowing Trafigura to serve them with judgment debt documents by mail and email was rejected by the High Court as unworkable.

    As GoG requested that its lawyers speak with the corporation, Trafigura served the court documents through email, going through the finance ministry to ensure that all correspondence was properly acknowledged and that court dates were set.

    “Trafigura, a multinational commodities-trading company based in Singapore, is the majority owner of GPGC, a power company which secured the award in January 2021 after an arbitral tribunal found that Ghana had unlawfully terminated a contract for the installation and operation of two power plants,” Global Arbitration Review wrote in an October 13 publication.

    GPGC was represented in GPGC v. The Government of the Republic of Ghana by Stephenson Harwood-trained attorneys James Willan KC and Catherine Jung of Essex Court Chambers.

    Stephen Houseman KC and Luke Tattershall, both from Essex Court and under the guidance of White & Case, represented Ghana.

    Dismissing Ghana’s challenge:

    In dismissing Ghana’s application, Master Davison considered the wording of section 12 of the SIA which specifies that the “document(s) requiring service through diplomatic channels are ‘any writ or other document required to be served for instituting proceedings against a State’” (judge’s italics) and therefore whether serving documents post-arbitration could fall with the “instituting proceedings” definition.

    GPGC argued that the documents to be served were part of a continuing process and were therefore not instituting proceedings; rather, the applications being made “were simply steps in the enforcement proceedings so instituted and could therefore be served by one of the ordinary methods of service, or by alternative service”.

    The case The European Union v. The Syrian Arab Republic [2018], in which Mr. Justice Bryan determined that the pertinent clause in the Civil Procedure Rules (6.44), which has been determined to be coterminous with section 12 of the SIA on multiple times, is possibly the best example of this.

    “is not concerned with service of documentation once proceedings have been served upon a State”.

    Aside from the definition of “instituting proceedings” the SIA also allows for service outside diplomatic channels if there is “good reason” for an alternative method of service; in this respect, Master Davison decided that the “good reason” test had been passed, because “this is a case where to require service through diplomatic channels would generate multiple periods of serious delay”.

    Furthermore, since Regina House’s lease was about to expire, any delay could be crucial to the enforcement process.