Oil trading firm Trafigura is taking steps to seize and auction various properties belonging to Ghana located in the United Kingdom.
These properties, including the Ghana High Commission’s building, the commissioner’s residence, and the Ghana International Bank building, are at risk of being sold to offset a $140 million judgment debt awarded to Trafigura.
The judgment debt arose from a written agreement related to the installation and operation of two power plants, which Ghana unlawfully terminated before fulfilling the agreed terms.
The Deputy Attorney General, Alfred Tuah-Yeboah, in an interview on JoyNews over the weekend emphasized the urgency of the Finance Ministry’s action to avoid the loss of these properties.
He also highlighted that the Attorney General’s office had taken measures to address the judgment case against the state and urged the Ministry of Finance to settle the debt promptly.
He added that the “Finance Ministry then entered into agreement with the judgement creditors as to how the state was going to pay this judgement debt of about $140 million.”
He pointed out that while a partial payment was made, the state failed to uphold its commitment to adhere to the agreement.
“Having failed to do so, the judgement creditor decided to execute the judgement. They attached property belonging to the Republic in the UK, and then they sought to serve us with that process. We then filed a motion trying to set aside the process through which we were served but the High Court in England said no, and that the service on us [state] was properly made. So now, the Ministry of Finance has been advised to once again approach the judgement creditors and make every effort to pay that money,” he explained.
Background
On January 26, 2021, Trafigura obtained a final award in its favor against the government of Ghana through arbitral proceedings in England.
The award of approximately $140 million stemmed from a written agreement for the installation and operation of two power plants. Ghana had prematurely terminated this agreement before the terms were provided.
On November 4, 2021, the Court granted Trafigura permission to enforce the award, treating it as if it were a judgment of the High Court. Service was carried out within the stipulated timeframe, with a deadline for contesting the order set at two months and 22 days after service. The deadline date was August 1, 2022, which Ghana later met.
On May 17, 2022, Trafigura applied for charging orders on five London properties in which Ghana held a freehold or leasehold interest. On the same day, the company filed an application for alternative service. On April 28, 2023, an order was issued allowing alternative service on Ghana. Trafigura served the Interim Charging Orders (ICOs), the order, and related documents via email on May 5, 2023.
In response, a legal counsel at the Ministry of Finance acknowledged receipt of the documents through email. On May 24, 2023, White and K, acting for Ghana, indicated their expectation to receive instructions from Ghana and proposed to agree on a revised timetable for Trafigura’s applications. However, on May 30, 2023, the hearing was adjourned by consent.
On June 23, 2023, Ghana applied to set aside the order, citing that Trafigura had been required to serve not only the order but also the application for the charging orders and the ICOs themselves through diplomatic channels. Subsequently, Ghana filed objections on July 21, 2023, regarding the finalization of the ICOs.
However, on August 2, 2023, Trafigura sought a receivership order in relation to Ghana’s leasehold interest in one of the London properties.
theindependentghana.com
