The Government of Ghana has reiterated its commitment to fulfilling its obligations under the Settlement Agreement with Trafigura, with the aim of resolving the matter swiftly.
This reassurance follows the circulation of a letter on social media suggesting a delay by the government in executing the agreement.
On September 24, Trafigura’s Ghana Power Generation Company (GPGC) petitioned Finance Minister Dr. Mohammed Amin Adam, seeking payment of outstanding arrears owed by the government.
In response, the Ministry of Finance clarified that the letter reflects ongoing discussions to settle the claims, assuring that necessary arrangements have been made to honour the outstanding payments, following several rounds of negotiations with Trafigura.
“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 honouring its obligations under the Settlement Agreement with Trafigura with the view to bring this matter to closure.”
GPCG in a letter addressed to the Finance Minister and 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.
The 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
Read below the statement by the Ministry of Finance
GOVERNMENT OF GHANA ON COURSE TO PAY TRAFIGURA
Accra, Tuesday 24th September 2024 –. It has come to our attention that a letter received
today, 24th 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 on-going engagement on pathways towards
settling the claims.
2.
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.
3.
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.
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