Attorney General and Minister of Justice Godfred Dame has clarified that no arbitration awards have been issued against Ghana since he assumed office.
In an interview with Accra-based Citi FM, Dame addressed a recent US court enforcement order related to the payment of Trafigura’s judgment debt. He explained, “There is no US court that has issued a judgment against the government of Ghana. The enforcement order in question is due to our failure to pay a judgment debt that dates back to January 2021, stemming from an award made at that time.”
Former Power Minister Dr. Kwabena Donkor has launched a critique against the Attorney General, accusing him of neglecting the $134 million judgment debt levied on Ghana by a tribunal in the United Kingdom.
This follows a recent decision by a District of Columbia Court in the United States, which granted a Motion for Default Judgment in favor of Trafigura Ghana Power Generation Company (GPGC). The court has ordered the Ghanaian government to pay $111,493,828.92, along with mandatory post-judgment interest.
The ruling has raised concerns that Ghana’s assets, including its High Commission building in the U.S., could be at risk of liquidation if GPGC pursues enforcement of the judgment to recover its investment.
Dr. Kwabena Donkor, who managed the emergency power agreement that led to this dispute, has criticized the New Patriotic Party government’s decision to terminate the agreement, calling it unjustified. He has questioned why the Attorney General and the Ministry of Energy did not address the legal liabilities that have now resulted in this unfavorable judgment.
“What was the Attorney General’s Department and the Ministry of Energy doing? Did they neglect their responsibilities, or did they believe the arbitration settlement was so robust that it wasn’t worth contesting?”
Dr. Kwabena Donkor has disclosed that, following the arbitration settlement, the government had agreed to negotiate with Trafigura on a settlement plan, including the possibility of purchasing and taking over the plant.
However, he asserts that the Attorney General failed to follow through on this agreement.
“This is not the first time we’ve encountered such a situation,” Dr. Donkor noted. “We go to arbitration, receive a judgment, agree to a settlement, and then fail to uphold it.”
The Attorney General, however, has rejected these claims.
He emphasized the notable progress Ghana has achieved in international arbitration, stating, “I am confident and proud to affirm that, to date, there has not been a single arbitration award against the government of Ghana during my tenure as Attorney General. This is a significant achievement.”
Mr. Dame further explained that the Trafigura judgment debt is not a new development but a matter resolved in January 2021. The recent court action was simply an enforcement order, and the government is currently in the process of completing the payment.
