Global oil conglomerate Trafigura has escalated its long-standing dispute with the Ghanaian government over a $134 million judgment debt.
The company has petitioned Finance Minister Dr. Mohammed Amin Adam to settle the debt immediately, warning of further legal action if the government fails to comply.
The debt stems from a terminated power purchase agreement and has been outstanding for four years. Despite a U.S. court judgment awarding an additional $111.4 million in interest, Ghana remains unwilling or unable to pay.
Trafigura has already taken steps to recover the funds. The company has seized control of Regina House, a key Ghanaian commercial property in London, and is threatening to seize further assets in South Africa.
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 and awarded GPGC $134 million in damages.
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 now faces a crucial decision: settle the debt or risk further asset seizures. The outcome will have significant implications for Ghana’s international reputation and financial stability.
