- Trafigura has temporarily claimed Regina House in London, a property owned by the government, due to a judgement debt
- Attorney General Godfred Yeboah Dame said the property had been seized by the firm amid negotiations for a payment plan
- Ghana has been ordered to pay $111,493,828.92 with interest to the multinational company if this property is to be returned
Oil conglomerate Trafigura has temporarily taken over Regina House in London, a commercial property owned by the government, after previous suggestions.
This takeover was because the Ghanaian government had failed to pay a $134 million judgment debt.
Source: Getty Images
Joy News confirmed that Regina House is now under receivership by Trafigura after earlier suggestions from Bright Simons, the Vice President of IMANI Africa.
Ghana’s High Commission to the United Kingdom, Papa Owusu-Ankomah, said the takeover would hold until the bills are settled.
“Until we pay in full or come into an arrangement to pay them,” Ankomah told Joy News.
Release of Regina House outlined by AG
Attorney General Godfred Yeboah Dame has since said the property was released to the state after it was seized.
The Ministry of Finance and the Ministry of Energy would negotiate the terms of payment with Trafigura, which his office would review to ensure they were in the country’s best interest.
“I am also happy to state that that property has been released from attachment. We dealt with it some time ago.”
Why is Ghana in trouble with Trafigura?
Trafigura sued the government for terminating two power deals. It was awarded $134,348,661 in damages, calculated using an Early Termination Payment formula.
Despite the ruling, Ghana only made partial payments totalling $1,897,692.40, leaving a significant outstanding balance.
Simons said there were delay tactics used by Dame in handling the case.
Most recently, a US court granted a judgment favouring the Ghana Power Generation Company, a subsidiary of Trafigura, ordering the government to pay $111,493,828.92 with interest.
This ruling followed Ghana’s failure to fully comply with an earlier tribunal decision from the UK.
West Africa Gas Limited owed judgement debt
YEN.com.gh also reported that a London Court of Arbitration ordered the government to pay over $70 million to West Africa Gas Limited.
The company terminated its gas sales agreement with the government on October 9, 2015, due to alleged ‘roadblocks’ in the arrangement.
Proofread by Bruce Douglas, senior copy editor at YEN.com.gh
Source: YEN.com.gh