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Trafigura threatens to seize Ghana’s properties in South Africa over $111m debt
Trafigura’s Ghana Power Generation Company (GPGC) has petitioned Finance Minister Dr. Mohammed Amin Adam on outstanding arrears owed to it by the Government of Ghana.
GPCG in 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.
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,” it indicated.
Source: Citinewsroom.com
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Steps underway to repeal L.I 2462 – Prez assures
President John Dramani Mahama has assured Ghanaians that steps are underway to repeal Legislative Instrument 2462 as part of efforts to protect the country’s forests and water bodies.
During his media encounter at the Jubilee House, the president explained that the repeal will formalise the ban on mining in forest reserves and strengthen enforcement against illegal mining.
He stressed that his administration is committed to safeguarding the environment, reclaiming degraded reserves, and deploying more personnel to protect river bodies across the country.
By: Jacob Aggrey
News
9 forest reserves recovered from illegal mining – President Mahama
President John Dramani Mahama has announced the recovery of nine forest reserves from illegal mining under his government’s intensified environmental protection drive.
Addressing journalists at the Jubilee House, the president explained that hundreds of excavators, water pumps and other equipment have been seized as part of the operation, while degraded areas are being reclaimed and restored.
He reaffirmed his administration’s commitment to end mining in protected areas, deploy more personnel to safeguard river bodies and strengthen laws to secure Ghana’s natural resources for future generations.
This notwithstanding, President Mahama revealed that two of the retrieved forest reserves had gone back into the hands of illegal miners, however, adequate measures have been put in place to reclaim them.
By: Jacob Aggrey
