Trafigura threatens to seize Ghana's assets in South Africa over unpaid $134M debt

Sep 24, 2024 - 16:26

Accra, Ghana - Trafigura, an oil conglomerate, has just turned up the heat on Ghana's government by petitioning Finance Minister Dr. Mohammed Amin Adam to settle a whopping $134 million judgment debt.

And this isn't just a polite request - Trafigura is threatening to seize Ghana's assets in South Africa if the debt remains unpaid.

To make matters worse, Trafigura has already taken control of Ghana's Regina House in London, a key commercial property, due to the government's failure to pay up.

The Origins of the Debt

This whole ordeal started in 2018 when Ghana terminated a power purchase agreement with GPGC, a foreign power company.

A UK tribunal ruled in favor of GPGC, awarding them $134 million in damages, including interest and arbitration fees.

Despite this ruling, Ghana only made partial payments, leaving a substantial balance outstanding.

The Latest Developments

Fast forward to January 2024, GPGC filed a case in the U.S. District Court to recover the remaining debt under the New York Convention. Ghana was served with the petition but failed to respond by the deadline.

The court ruled in favor of GPGC, adding post-judgment interest to the financial burden on Ghana.

Trafigura's Demands

Trafigura's petition, submitted to the Finance Ministry on September 23, demands immediate settlement and warns of further legal action if the government fails to comply.