In a shocking turn of events, Trafigura’s Ghana Power Generation Company has taken possession of Ghana’s prestigious Regina House in London, following the government’s failure to settle a $134 million judgment debt.
This development marks a significant escalation in the long-standing dispute between Ghana and Trafigura.
According to Bright Simons, Vice President of Imani Africa, “The seizure of Regina House is a clear indication of the government’s inability to manage its financial obligations.”
He added, “This situation could have been avoided if the government had taken proactive steps to address the issue.”
Ghana’s High Commissioner to the UK, Papa Owusu-Ankomah, confirmed the seizure, stating, “Until we pay in full or come into an arrangement to pay them, Trafigura will remain in control over the receivership of the Regina House and its proceeds.”
The dispute originated from the abrupt termination of a power purchase agreement between Ghana and Trafigura in 2018.
A UK tribunal subsequently awarded Trafigura $134 million in damages, which Ghana has failed to pay despite repeated attempts by the energy firm to secure the payment.
Meanwhile, Attorney General, Godfred Yeboah Dame attributed the delay in payment to the Finance Ministry, saying, “It is up to the Finance Ministry to expedite action on the payment.”
As the situation unfolds, Ghana faces the risk of further financial complications, with the seizure of its assets abroad serving as a stark reminder of the consequences of defaulting on international obligations.
-BY Daniel Bampoe