- Trafigura demands $134M from Ghana.
- Asset seizure looms in South Africa.
- Debt from terminated power agreement.
- U.S. court adds $111.4M interest.
Trafigura, a global oil conglomerate, has taken bold action against the Ghanaian government. The company has petitioned Finance Minister Dr. Mohammed Amin Adam to settle a long-standing judgment debt.
The debt in question totals $134 million, stemming from a terminated power purchase agreement. Trafigura has been seeking payment for four years, but Ghana’s government has failed to comply.
To recover the funds, Trafigura secured a U.S. court judgment, awarding an additional $111.4 million in interest. Despite this, Ghana remains unwilling or unable to pay.
Trafigura’s patience has worn thin. The company has already seized control of Regina House, a key Ghanaian commercial property in London. Further assets in South Africa are at risk of seizure if the debt remains unsettled.
In its petition, Trafigura urged Dr. Adam to settle the debt immediately. Failure to comply will prompt further legal action to recover the funds.
The dispute began in 2018 when Ghana terminated a power purchase agreement with GPGC, a foreign power company. A UK tribunal subsequently ruled that Ghana breached its contractual obligations.
The tribunal awarded GPGC $134 million in damages, including interest and arbitration fees. Ghana made partial payments but left a substantial balance outstanding.
In January 2024, GPGC filed a U.S. District Court case to recover the remaining debt under the New York Convention. Ghana failed to respond, leading the court to rule in GPGC’s favor.
The court’s decision added post-judgment interest to Ghana’s financial burden, complicating efforts to resolve the debt. Trafigura’s actions demonstrate its commitment to recovering the funds.
The Ghanaian government must now decide whether to settle the debt or risk further asset seizures. The outcome will have significant implications for Ghana’s international reputation and financial stability.
