London – In a significant development, Oil conglomerate, Trafigura’s Ghana Power Generation Company, (GPGC) has taken control of one of Ghana’s most important commercial properties: Regina House in London. This action comes after the Ghanaian government failed to pay a $134 million judgment debt awarded by a UK tribunal after a long trial process .
Here are the key details:
- Background: Trafigura had been pursuing payment for four years following the abrupt termination of a power purchase agreement. Despite partial payments, Ghana still owed over $111 million in arrears to the company.
- The Judgment: On January 26, 2021, a UK tribunal ruled that Ghana breached its contractual obligations by terminating the power purchase agreement with GPGC. The tribunal awarded GPGC $134,348,661 in damages, including interest and reimbursement of legal fees fees.
- Regina House: The iconic commercial building, Regina House, now falls under Trafigura’s receivership. Until the debt is settled in full, Trafigura will control revenues accruing from the property.
- Government Response: Ghana’s High Commission to the United Kingdom, Papa Owusu-Ankomah, emphasized the need for negotiations to address the compounding interest. He acknowledged that Ghana is currently facing financial challenges which leg to the default in payment .
This legal battle underscores the importance of honoring contractual obligations and the financial implications when agreements are terminated. Stay tuned for further developments as negotiations in this matter continues.
Source : Sankofaonline.com
