The Ministry of Finance says it has made the necessary arrangements to pay off the outstanding claims agreed with oil giant Trafigura after several rounds of negotiations.
This follows reports that Trafigura had petitioned Ghana’s Finance Minister, Dr. Mohammed Amin Adam, over an unresolved judgment debt.
The warning follows Trafigura’s purchase of Regina House, a significant commercial property in London, and the government’s inability to resolve a USD134 million judgment about a canceled power purchase agreement.
The dispute dates back to a January 26, 2021 ruling by a UK tribunal, which found that Ghana had breached its contractual obligations by terminating its agreement with GPGC, a foreign power company, in 2018.
The tribunal awarded GPGC USD 134 million in damages, including interest and arbitration fees. Yet, despite the tribunal’s clear mandate, the government has only made partial payments, leaving a substantial sum outstanding.
However, a press statement issued by the Finance Ministry gave the assurance that the government was already dealing with the matter amicably and so surprised that the issue had suddenly popped up on social media
“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,” said.
“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 statement assured,
“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,” the statement concluded.
