Trafigura Chases Ghana over $111m Judgement Debt Payment

Trafigura, Ghana Power Generation Company (GPGC) has has issued a one week ultimatum to Government of Ghana for the settlement of $ 111 million outstanding arrears owed to it by the state.

This was contained in a petition dated September 23, 2024 to the mnister of Finance, Dr Mohammed Amin Adam.

The power company in the letter copied to the Attorney General and Minister of Justice Godfred Yeboah Dame, warned that it may be compelled to seize Ghana’s properties in South Africa and the United States of America if the government fails to pay an outstanding $111 million out of $134 million judgement debt it was awarded four years ago after Ghana abrogated a power purchase agreement.

A similar action was taken in August 2024, when Trafigura moved in to briefly seize Ghana’s Regina House in the United Kingdom for defaulting on a payment agreement.

The origins of this legal dispute trace back to a decision made on January 26, 2021, by a UK tribunal. The tribunal issued a decisive final award, concluding that the Ghanaian government had breached its contractual obligations under the power purchase agreement with GPGC.

This breach occurred when Ghana unilaterally terminated the agreement on February 18, 2018. The tribunal’s findings were damning, ruling that Ghana was liable to pay GPGC a staggering $134,348,661 as an early termination payment.

Government paid $23 million of the debt when the Regina House was seized with a balance of $111 million.

GPCG in its letter to the Finance Minister gave Ghana up to the end of this week to settle debt.

“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.”

Read full deatails of the petition below: