No new judgment against Ghana as AG clarifies Trafigura debt

The Attorney General and Minister of Justice, Godfred Yeboah Dame, has clarified that the Trafigura judgment debt is not a recent development, emphasizing that no new judgment has been issued against Ghana by a U.S. court.

This clarification follows reports that a District of Columbia Court ordered the Ghanaian government to pay over $111 million, plus post-judgment interest, in favor of the Ghana Power Generation Company (GPGC) following a Motion of Judgement.

In an interview with Citi FM in Accra on Wednesday, Mr. Dame stated, "The award in question was issued back in 2021, and since then, the government has been responsible for making the payment. Efforts have been made to fulfill this obligation."

He explained that the company's pursuit of enforcement orders in other jurisdictions resulted from the government's failure to complete the payment. 

He added "This is not a new judgment or a fresh award from any court or tribunal. It is simply an enforcement order stemming from an unpaid judgment debt that originated in January 2021."

Mr. Dame also addressed the misconception that a new judgment debt had been issued, saying, "The reports suggesting another judgment debt or a new judgment by a U.S. court are misleading. 

No U.S. court has awarded a judgment against the government of Ghana. The current enforcement order is related to a judgment debt from 2021."

Meanwhile, a document from a U.S. District Court has highlighted a series of errors by Ghana's legal team, which hindered their ability to contest the significant $134 million judgment awarded to Trafigura by English courts.

The dispute arose from a power purchase agreement between Trafigura's subsidiary, GPGC, and the Ghanaian government. When Ghana unilaterally terminated the agreement in 2018, it led to the substantial judgment.