One of Ghana’s notable commercial properties in the United Kingdom, Regina House, has been returned to the state after being seized by Trafigura due to the country’s failure to pay a $134 million judgment debt.
The debt stemmed from a power purchase agreement dispute between Ghana and Trafigura’s Ghana Power Generation Company (GPGC). Four years ago, GPGC was awarded $134 million after Ghana canceled the agreement.
Attorney General Godfred Yeboah Dame confirmed the release of Regina House during an interview with Citi News. He noted that the Ministry of Finance and the Ministry of Energy would handle negotiations with Trafigura regarding the payment terms, with his office responsible for reviewing the terms to ensure they align with the country’s best interests.
Dame emphasized, “The release has occurred, and I am pleased to state that the property has been released from attachment. We resolved it some time ago. However, it is important to note that the responsibility to negotiate the settlement terms with GPGC lies with the Ministry of Finance and the Ministry of Energy, not the Attorney General. My duty is to review the agreed terms and ensure they benefit the country.”
This legal issue traces back to a ruling on January 26, 2021, by a UK tribunal. The tribunal found that Ghana had breached its contractual obligations by unilaterally terminating the power purchase agreement on February 18, 2018.
As a result, Ghana was ordered to pay GPGC $134,348,661 as an early termination payment, along with an additional $3,309,877.74 to cover GPGC’s arbitration fees and expenses. The interest on this amount was compounded quarterly at a three-month USD LIBOR rate, adding further financial pressure on Ghana.
Background
For four years, Trafiguara has been unsuccessful in getting the government to pay up the judgement debt awarded to the energy firm after the abrupt termination of a power purchase agreement.
This situation forced Trafigura to secure another judgment in the United States courts, which awarded a mandatory interest on the default of 111.4 million dollars which remains the arrears to be paid by the Republic of Ghana.
Attorney General Godfred Yeboah Dame previously told Joy News it was up to the Finance Ministry to expedite action on the payment.
Following the latest Joy News report on the United States District Court ruling, Vice President of Imani Africa Bright Simons took to social media platform, X (Twitter) to state that one of Ghana’s most important commercial properties, the Regina House in London, had been taken over by Trafigura following the judgment debt award by a tribunal in the United Kingdom.
According to Bright Simons, information on the seizure was being concealed by the government of Ghana.
