Ghana’s Attorney General Clarifies Trafigura Judgment Debt Status

Attorney General and Minister of Justice Godfred Yeboah Dame has clarified recent reports regarding the Trafigura judgment debt, stating that the issue is not new and no fresh judgment has been awarded against Ghana by a US court.

In an interview with Accra-based Citi FM on Wednesday, Mr. Dame addressed confusion arising from recent reports that a District of Columbia Court had ordered the Ghanaian government to pay over $111 million, plus post-judgment interest, to the Ghana Power Generation Company (GPGC). He explained that this award was actually issued back in 2021, and the government has since been obligated to make payments.

“It is the failure to exhaust payment which has led to the company seeking enforcement orders in other jurisdictions,” Mr. Dame clarified. “It is not the case where there has been a new judgment or a fresh award given by any court or any tribunal anywhere.”

He emphasized that the recent reports may have created the impression of a new judgment debt, which is incorrect. “The impression that is sought to be created by the publication that I have seen today—another judgment debt, a new judgment debt, US Court awards—there is no US Court which is awarding judgment against the government of Ghana. It is only an enforcement order, and that enforcement order is on account of a failure to pay a judgment debt which accrued way back in January 2021 as a result of an award that was given that time,” Mr. Dame stated.

The clarification follows revelations from a US District Court document that detailed errors made by Ghana’s legal team, which contributed to the failure to challenge a substantial $134 million judgment awarded to Trafigura by English courts. The dispute originated from a power purchase agreement between Trafigura’s subsidiary, GPGC, and the Ghanaian government, which was unilaterally terminated by Ghana in 2018, leading to the significant judgment.

Despite a ruling from the UK tribunal ordering Ghana to pay $134,348,661, the government made only partial payments, leaving an outstanding balance of $111,493,828.92, with interest continuing to accrue. The situation was further complicated when Ghana missed the legal deadlines to challenge the UK judgment, resulting in a considerable financial burden.

Mr. Dame's remarks aim to address and dispel any misunderstandings about the status of the Trafigura judgment debt and the current legal situation facing the Ghanaian government.