Trafigura $140m judgment debt: I can assure Ghanaians that the Ministry of Finance has things well in hand – Papa Owusu Ankomah
“Having failed to do so, the judgment creditor decided to execute the judgment. 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 judgment creditors and make every effort to pay that money,”
Ghana’s High Commissioner to the United Kingdom, Papa Owusu Ankomah, has assured Ghanaians that the Ministry of Finance has things well in hand regarding the $ 140 million judgment debt payment to a Singaporean multinational commodities-trading company, Trafigura.
He said it is unfortunate that the development got to the stage where the Ghana International Bank building, the Ghana High Commission’s building in the UK which provides visa and other services, the commissioner’s residence and other properties belonging to Ghana are on the verge of being sold to pay the $140 million judgment debt awarded to Trafigura, the majority owner of Ghana Power Generating Company (GPGC).
A court in the United Kingdom in 2021 awarded a $140 million arbitral against Ghana for the termination of a power deal with GPGC.
The government was accordingly ordered by the court to make full payment of the value of the Early Termination Payment of $134,348,661 together with the “Mobilisation, Demobilization and preservation and maintenance costs” of the value. The court also ordered Ghana to pay all the interest that has accrued from it.
In addition, the government was asked to pay the cost of the arbitration and the legal fees of GPGC, which amounted to over $3 million.
Trafigura, an oil trader is in the position currently to sell Ghana’s assets in the UK in other to raise the amount of money the government of Ghana owes it.
On 23rd June, 2003, Ghana filed an application to set aside the order but the court dismissed the application.
Deputy Attorney-General Alfred Tuah Yeboah said although part payment was made, the state was unable to meet the installment payment plan.
“Having failed to do so, the judgment creditor decided to execute the judgment. 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 judgment creditors and make every effort to pay that money,” he is reported to have said.
Speaking on this development, Papa Owusu Ankomah told Joy FM the creditors are interested in their money and it’s not going to be easy selling these properties.
“As far as I am aware, it’s only Regina House which is used for commercial purposes because it’s been rented by the Ghana International Bank, two other banks and another commercial entity. That is the one that has been attached. All other properties are diplomatic properties and covered by immunity.
“I heard you talk about the High Commissioner’s residence, but that’s being used for diplomatic purposes, likewise, the other building you’re talking about, that’s the chancery, has not been attached. But I am sure the government is taking steps to liquidate that debt.”
He added, “It’s unfortunate that we’ve come to this stage. It appears our financial circumstances as a country probably, are not holding brief for the finance minister, and that may have constrained the Finance Ministry from honouring the obligation to pay the debt by instalments. But, I am aware that the Finance Ministry is presently engaged in negotiations with lawyers for the judgment creditor to liquidate this debt.
“It’s embarrassing; I am embarrassed as High Commissioner for this thing to appear on the internet and everything, and be a subject matter of discussion in Ghana and in the Ghanaian media here. It’s serious, but even for those in private business, it gets to a stage you have to prioritize payments when you don’t have access to credit and monies being generated do not meet your obligations. Of course I am sure government could have said that we will pay this debt, and not pay some workers.”
He added “This is just the beginning. It’s quite a process. It’s not as if it can be done either today or tomorrow because Regina House for instance is on a lease. Even though it’s for a long time, it’s got about five or six years to run, and there are negotiations to extend the lease.
“But I can assure you and Ghanaians that the Ministry of Finance has things well in hand. The creditors are interested in their money and it’s not going to be easy selling these properties, so it’s not as if tomorrow they are going to evict the Ghana High Commission and its staff from its premises, or the High Commissioner from his residence or tenants in Regina House are going to be evicted, no.
“They are going to manage it somehow till they recover the money, so it’s just a way of pressurizing government to pay the judgment debt which I am sure the arrangements are being done.”
Source: 3News.com
