Papa Owusu Ankomah, Ghana’s High Commissioner to the United Kingdom, expressed his dismay over the situation involving Ghana’s payment of a substantial judgment debt to Trafigura, a Singaporean commodities-trading company. This debt has led to a potential threat of seizing and auctioning Ghana’s assets in the UK to settle the outstanding amount.
In January 2021, an arbitral tribunal ruled in favor of Trafigura, the majority owner of GPGC, a power company, citing Ghana’s wrongful termination of a contract for the installation and operation of two power plants.
Assets at risk of being sold to offset the $140 million judgment debt include the Ghana High Commission’s building in the UK, which provides visa and other services, the commissioner’s residence, the Ghana International Bank building, and various other properties.
Alfred Tuah-Yeboah, a Deputy Attorney General, has stated that the government is taking action by instructing the Finance Ministry to address the debt liquidation process.
According to him, the Finance Ministry entered into an agreement with the judgment creditors as to how the state was going to pay the debt of about $140 million.
While there was an initial partial payment made, the Deputy Attorney General acknowledged that the government did not follow through with the agreed installment plan. Consequently, the judgment creditor opted to enforce the judgment by attaching properties owned by the Republic of Ghana in the UK and served the government with the necessary legal documents. An attempt to challenge the service of these documents in the English High Court was unsuccessful. As a result, the Ministry of Finance has been advised to re-engage with the judgment creditors and make every possible effort to settle the outstanding debt.
“As far as I’m aware, Regina House is the only building that’s used for business, and that’s only because the Ghana International Bank, two other banks, and another commercial organization have all rented it. It has been attached, so that is the one. All other assets are protected by immunity and are considered diplomatic properties. You mentioned the High Commissioner’s residence, which is currently being used for diplomatic activities. The other structure you mentioned, the chancery, has not yet been connected. But I have no doubt that the government is moving to pay down that debt.”
He expressed his disappointment with the current state of affairs and suggested that Ghana’s financial difficulties may have hindered the Finance Ministry from adhering to the debt repayment plan. However, he assured that the Finance Ministry is actively involved in discussions with the judgment creditor’s lawyers to settle the debt.
The High Commissioner found the situation embarrassing, particularly as it had become a topic of discussion in Ghana and its media. He noted that in both government and private business, prioritizing payments becomes necessary when financial constraints arise, even if it means not paying certain workers.
Despite the potential loss of assets due to the court order, the former Minister of State believes that the creditors’ actions are primarily a tactic to pressure the government. He emphasized that this is just the initial phase of a longer process, explaining that properties like Regina House are on lease agreements, some of which have several years remaining, and negotiations for lease extensions are ongoing.
He assured Ghanaians that the Ministry of Finance is effectively managing the situation. The creditors are primarily interested in recovering their owed money, and the process of selling these properties won’t happen abruptly. Therefore, there won’t be an immediate eviction of the Ghana High Commission, its staff, the High Commissioner’s residence, or the tenants in Regina House. The government and creditors will find a way to handle the situation while working on arrangements to settle the judgment debt.
Regarding the operations of the Ghana International Bank, he explained that the bank is a separate entity from the government of Ghana, even though its shareholders are government agencies. The bank’s operations continue, and no one, including other tenants in the building, has been evicted. He stressed that it is in the interest of the judgment creditor to reach a settlement because resorting to property attachment may not be the most efficient way to recover the owed funds.
While refraining from delving into the specifics of the contract termination that led to this situation, the former Attorney General attributed the issue to the country’s financial challenges.
“The regrettable reality is that we are experiencing severe financial hardship, which is what led to this predicament. Due to the financial crisis, even though a portion of the money had already been paid, I’m sure we were unable to continue.
We wouldn’t have omitted this obligation on purpose, in my opinion. When you are struggling financially, payments come first. I am speaking from experience because I have served in government before. Will you no longer import oil due to this debt? Do you cease paying wages? Therefore, it makes sense that these financial difficulties are the cause of the scenario we are in.
Source | ghana360news.com
