Ghana to pay $140 million judgment debt
The Vice President of policy think tank, IMANI Africa, Bright Simons, has hinted that the government has realized that there may be no way out of the $140 million judgment debt claim by GPGC, a subsidiary of international commodities company, Trafigura.
Therefore, he said the government is planning as part
Read full articleof negotiations for a payment plan to shift payments to future years.
He wrote on X: “Our sources indicate that the govt of Ghana has begun to realize that it has to beat a legal retreat & start negotiating a payment plan with Trafigura re the $140m judgment debt as it has no other leverage with them. As usual, they want to shift payment tranches to future years.”
Background
Ghanaian state properties in London risk seizure by a Trafigura subsidiary to satisfy a US$140 million award after a court ruled the state didn’t need to be served with interim charging orders through diplomatic channels, a report by the Global Arbitration Review said.
A High Court in the United Kingdom has thrown out the Government of Ghana's challenge on processes used to serve the country proceedings relating to a judgment debt claim by GPGC, a subsidiary of international commodities company, Trafigura.
The company sued the Ghana government over the termination of two power deals and was awarded a judgment debt of US$140 million by a UK court.
Ghana contended, however, that the company under existing laws had to serve the government through diplomatic channels contrary to a ruling that allowed them to use alternative services.
The High Court ruled that Ghana's move to invoke the State Immunity Act provisions as basis for which Trafigura could not serve them judgment debt documents via post and email, was untenable.
Trafigura, via email, went through the finance ministry in serving the court documents with all correspondence duly acknowledged and court dates agreed as GoG asked its lawyers to engage with the company.
"Trafigura, a multinational commodities-trading company based in Singapore, is the majority owner of GPGC, a power company that secured the award in January 2021 after an arbitral tribunal found that Ghana had unlawfully terminated a contract for the installation and operation of two power plants," Global Arbitration Review wrote in an October 13 publication.
In GPGC v The Government of the Republic of Ghana, GPGC was represented by James Willan KC and Catherine Jung of Essex Court Chambers, instructed by Stephenson Harwood.
Ghana was represented by Stephen Houseman KC and Luke Tattershall, also of Essex Court, instructed by White & Case. $140 million judgment debt: Government wants to shift payment tranches to future years – Bright Simons
The Vice President of policy think tank, IMANI Africa, Bright Simons has hinted that the government has realized that there may be no way out of the $140 million judgment debt claim by GPGC, a subsidiary of international commodities company, Trafigura.
Therefore, he said the government is planning as part of negotiations for a payment plan to shift payments to future years.
He wrote on X: “Our sources indicate that the govt of Ghana has begun to realize that it has to beat a legal retreat & start negotiating a payment plan with Trafigura re the $140m judgment debt as it has no other leverage with them. As usual, they want to shift payment tranches to future years.”
Background
Ghanaian state properties in London risk seizure by a Trafigura subsidiary to satisfy a US$140 million award after a court ruled the state didn’t need to be served with interim charging orders through diplomatic channels, a report by the Global Arbitration Review said.
A High Court in the United Kingdom has thrown out the Government of Ghana's challenge on processes used to serve the country proceedings relating to a judgment debt claim by GPGC, a subsidiary of international commodities company, Trafigura.
The company sued the Ghana government over the termination of two power deals and was awarded a judgment debt of US$140 million by a UK court.
Ghana contended, however, that the company under existing laws had to serve the government through diplomatic channels contrary to a ruling that allowed them to use alternative services.
The High Court ruled that Ghana's move to invoke the State Immunity Act provisions as basis for which Trafigura could not serve them judgment debt documents via post and email, was untenable.
Trafigura, via email, went through the finance ministry in serving the court documents with all correspondence duly acknowledged and court dates agreed as GoG asked its lawyers to engage with the company.
"Trafigura, a multinational commodities-trading company based in Singapore, is the majority owner of GPGC, a power company that secured the award in January 2021 after an arbitral tribunal found that Ghana had unlawfully terminated a contract for the installation and operation of two power plants," Global Arbitration Review wrote in an October 13 publication.
In GPGC v The Government of the Republic of Ghana, GPGC was represented by James Willan KC and Catherine Jung of Essex Court Chambers, instructed by Stephenson Harwood.
Ghana was represented by Stephen Houseman KC and Luke Tattershall, also of Essex Court, instructed by White & Case.
SSD/OGB
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