The Ghana High Commission’s building, along with other properties in Ghana in the United Kingdom, are at risk of being sold to defray a staggering $140 million judgement debt awarded to the oil trading firm Trafigura, according to a report by Joynews.
The debt stems from a legal dispute between the two entities, adding uncertainty to the future operations of the Ghanaian diplomatic mission.
A written agreement for the installation and operation of two power plants gave rise to the award, which was roughly $140 million. However, Ghana illegally terminated the agreement before the terms were provided.
The alarming situation came to light during the Joynews programme ” The Probe” where it surfaced that Trafigura had sought legal measures to recover the substantial debt owed to them.
Attempts are currently underway to negotiate with Trafigura and explore alternative solutions to settle the outstanding debt without resorting to the sale of these crucial properties.
Commenting on the development in an interview on JoyNews’ The Probe on Sunday, October 22, the Deputy Attorney General, Alfred Tuah-Yeboah urged the Finance Ministry to act fast or Ghana will lose the property.
According to him, upon the AG’s office hearing about the judgement case against the state, they took steps to speak to the Ministry of Finance for the debts to be liquidated because it was a just debt.
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 noted that although part payment was made, the state reneged on its promise to go by 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.
The Ghana High Commission’s building, situated in a prime location, serves as a critical hub for visa processing and other essential services for Ghanaians and foreign nationals seeking entry into the country.
While the situation remains fluid and uncertain, the Ghanaian government is striving to find a fair and viable solution to the judgment debt issue.
Background
On January 26, 2021, Trafigura obtained the final award in its favour against the government of Ghana in arbitral proceedings in England.
A written agreement for the installation and operation of two power plants gave rise to the award, which was roughly $140 million. However, Ghana illegally terminated the agreement before the terms were provided.
On November 4, 2021, the Court granted Trafigura leave to enforce the award in the same manner as a judgement of the High Court.
According to sources, service was affected, and the deadline for challenging the order was two months and 22 days after service. The deadline date was August 1, 2022, and later it was made by Ghana.
On May 17, 2022, Trafigura issued an application for charging orders in relation to the five London properties in which Ghana had a freehold or leasehold interest.
On the same day, the company also issued an application for alternative service. On April 28, 2023, an order was made permitting alternative service to Ghana.
So Trafigura served the ICOs the order and other related documents on May 5, 2023, by email.
In response to one of the emails, a legal counsel in the Ministry of Finance, whose email address was one of those listed in the appendix to the order, in particular, sent an email on May 5, 2023, specifically acknowledging receipt of the documents.
On May 24, 2023, Trafigura received an email from White and K stating that it expected to receive instructions to act for Ghana and seeking to agree on a revised timetable in relation to Trafigura’s applications.
However, on May 30, 2023, the hearing was subsequently vacated with consent.
On June 23, 2003, Ghana issued an application to set aside the order. The order was subsequently dismissed, but a substantial basis for the application was that Trafigura had been obliged to serve not only the order but also the application for the charging orders and the ICO themselves by diplomatic procedure.
Ghana then filed the objections on the 21st of July, 2003, in relation to making the ICOs final, but on the 2nd of August, 2023, Trafigura made an application for a receivership order in relation to Ghana’s leasehold interest in one of the London properties.
