TIG Post

Tag: Tafrigura

  • “In my tenure as AG, there has not been a single judgment debt against Ghana” – Godfred Dame

    “In my tenure as AG, there has not been a single judgment debt against Ghana” – Godfred Dame

    Attorney General and Minister for Justice, Godfred Yeboah Dame, has touted his achievement of successfully safeguarding the already strained national kitty from billions of dollars that would have otherwise been paid as judgment debts.

    Mr Dame, proud of his achievements, made this assertion during a radio interview where he responded to comments by former Minister for Power and Member of Parliament for Pru East, Dr Kwabena Donkor, concerning a recent $111 million judgment debt awarded against the government of Ghana.

    On February 18, 2018, the government of Ghana terminated a power purchase deal with Ghana Power Generation Company (GPGC), which resulted in a $134 million award by a UK tribunal on January 26, 2021, against Ghana.

    An additional $111 million has been awarded against Ghana after GPGC filed a lawsuit on January 19, 2024, in the U.S. District Court, claiming recovery of the mounting interest on the principal debt under the Federal Arbitration Act’s Chapter 2 and the New York Convention.

    Dr Donkor, who was the Power Minister in 2015 when the contract was signed, during a period of severe power crisis in Ghana, quickly blamed the current Attorney General during an interview on Accra-based Joy FM.

    Donkor questioned and criticized the Attorney General and the Ministry of Energy for failing to pay the initial debt.

    In his defense, Mr. Dame rebuffed the claim, arguing that he was not the Attorney General when the judgment debt was awarded.

    Indeed, in January 2021, Mr. Dame was not a public officer nor an appointed state attorney as the country had just come out from the 2020 general election. He added that after the arbitration was concluded, the payment obligation was solely the responsibility of the Ministry of Finance and the Ministry of Energy.

    “It is the failure of the government of Ghana to pay this judgment entered in 2021 which has led to the repeated applications in various courts by GPGC. The government indeed made some payments, but the explanation of the default does not lie with the Attorney General but with the Finance Ministry and the Energy Ministry,” he noted.

    The Attorney General went on to emphasize his track record, stating, “The records will show that in my tenure as AG, there has not been a single judgment debt against Ghana, and claims were in billions of dollars.”

    Background

    A U.S. District Court document has revealed that Ghana’s legal team made critical errors that led to the country’s failure to challenge a $134 million judgment awarded to British energy firm Trafigura.

    The judgment stems from a power purchase agreement between Trafigura’s subsidiary, the Ghana Power Generation Company (GPGC), and the Ghanaian government. A UK tribunal ruled on January 26, 2021, that Ghana breached the contract by terminating it early in February 2018, ordering the government to pay GPGC $134 million plus arbitration costs.

    Ghana made only partial payments and then missed the legal deadline to challenge the judgment in UK courts, leaving a significant debt outstanding.

  • 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.