No new judgment against Ghana – AG Dame clarifies Trafigura debt

• Aug 22, 2024

The Attorney General and Minister of Justice, Godfred Yeboah Dame, has clarified that the Trafigura judgment debt is not a new issue, stating that no US court has awarded a fresh judgment against Ghana.

This clarification is in response to reports that a District of Columbia Court had ordered the Ghanaian government to pay over $111 million, plus post-judgment interest, following a Motion of Judgement in favour of the Ghana Power Generation Company (GPGC).

In an interview on Accra-based Citi FM on Wednesday, Mr Dame explained, “This award was given way back in 2021, and the government since then has had the obligation to pay, and indeed they have been making efforts to pay.

“It is the failure to exhaust payment which has led to the company seeking enforcement orders in other jurisdictions. It is not the case where there has been a new judgment or a fresh award given by any court or any tribunal anywhere.”

He further dispelled the notion that a new judgment debt had been issued, stating, “The impression that is sought to be created by the publication that I have seen today—another judgment debt, a new judgment debt, US Court awards, there is no US Court which is awarding judgment against the government of Ghana.

“It is only an enforcement order, and that enforcement order is on account of a failure to pay a judgment debt which accrued way back in January 2021 as a result of an award that was given that time.”

Meanwhile, a US District Court document has revealed a series of errors made by Ghana’s legal team, leading to the inability to challenge the substantial $134 million judgment awarded to Trafigura by English courts.

The dispute, rooted in a power purchase agreement between Trafigura’s subsidiary, GPGC, and the Ghanaian government, saw Ghana unilaterally terminate the agreement in 2018, leading to the hefty judgment.

Despite a clear ruling from the UK tribunal, which ordered Ghana to pay $134,348,661, the government only made partial payments, leaving a significant balance of $111,493,828.92, with interest continuing to accumulate.

The situation was further complicated when Ghana missed the legal timelines to challenge the UK judgment, leaving the country with a substantial financial burden.

Myjoyonline.com