Government on Course to Pay Trafigura – Finance Ministry

The Government has reaffirmed its commitment to settle outstanding claims with Trafigura’s Ghana Power Generation Company (GPGC), following the unauthorised circulation of a letter that suggested delays in the process.

In a statement from the Ministry of Finance, the government expressed surprise at the leak of the document, which outlined ongoing negotiations with Trafigura. The letter, which appeared on social media, implied a lag in the execution of the Settlement Agreement.

The Ministry, however, refuted these claims, clarifying that negotiations had proceeded through several rounds and that payment arrangements were already in place.

The Ministry assured stakeholders that the government remains on course to meet its financial commitments to Trafigura’s GPGC and is actively working to resolve the matter.

“It has come to our attention that a letter received today, 24^th September 2024 about our engagement with Trafigura is circulating in the media creating the impression of the government’s inaction on a yet-to-be-executed Settlement Agreement. As may have been noticed, the said letter references ongoing engagement on pathways towards settling the claims.

“The Ministry of Finance wishes to state that we have made the necessary arrangements to pay off the outstanding claims agreed with Trafigura after several rounds of negotiations. We are therefore surprised at the circulation of this letter on social media.

“The Government of Ghana remains committed to honoring its obligations under the Settlement Agreement with Trafigura with the view to bring this matter to closure,” remarked the Ministry in a press statement issued in response to the circulated letter and media reports.

Media reports about Trafigura’s Ghana Power Generation Company (GPGC) giving the Government a one-week ultimatum to settle its $111m outstanding debt to the company or face the seizure of assets in South Africa and the United States, were rife on Tuesday, September 24.

In a letter addressed to Finance Minister Dr. Mohammed Amin Adam, the GPGC called on the government to honour the remaining portion of a $134 million judgment awarded by a UK tribunal in 2021.

The legal battle stemmed from Ghana’s decision to unilaterally terminate its power purchase agreement with GPGC in February 2018.

A UK tribunal subsequently ruled in favour of GPGC in January 2021, ordering the government to pay $134 million in compensation for breach of contract.

Although Ghana has made an initial payment of $23 million, a further $111 million remains unpaid.

Source:norvanreports.com