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Trafigura’s Ghana Power Generation Company (GPGC) has petitioned Finance Minister Dr. Mohammed Amin Adam, urging the Government of Ghana to settle outstanding arrears owed to the company.
In a letter addressed to the Finance Minister and copied to the Attorney General and Minister of Justice, Godfred Yeboah Dame, GPGC warned it may be forced to seize Ghana’s properties in South Africa and the United States if the government fails to pay $111 million out of a $134 million judgment debt. This debt was awarded four years ago after the government abrogated a power purchase agreement with GPGC.
In August 2024, Trafigura briefly seized Ghana’s Regina House in the United Kingdom over the same defaulted payment. The ongoing legal dispute stems from a UK tribunal’s ruling on January 26, 2021, which found that the Government of Ghana breached its contractual obligations under the power purchase agreement. The tribunal concluded that Ghana was liable for an early termination payment of $134,348,661 after unilaterally canceling the agreement on February 18, 2018.
The government has since paid $23 million of the debt, leaving a balance of $111 million. GPGC has given Ghana until the end of the week to settle the debt to avoid further legal actions.
“We would prefer not to take any further enforcement action and instead resolve the matter amicably by fully executing the settlement agreement and receiving payment according to the agreed schedule,” GPGC stated in its letter.
source:locotvgh