Trafigura, a global oil company, through its subsidiary Ghana Power Generation Company(GPGC), has initiated legal steps to enforce an arbitral award against the Government of Ghana, filing the necessary documents in South Africa.
Despite sending a letter on September 20, 2024, requesting an amicable resolution, no response was received from Ghana’s Ministry of Finance, prompting the enforcement action.
As part of the effort, GPGC has subpoenaed 16 U.S. banks and plans to target additional corporations linked to Ghana.
The move stems from a dispute over a terminated power contract. In 2021, a UK tribunal ruling found that Ghana had breached its contractual obligations by cancelling a power purchase agreement with GPGC in 2018. The tribunal awarded GPGC $134 million in damages, including interest and arbitration fees.
For four years, Trafigura sought payment from the Ghanaian government without success. Earlier this year, in 2024, GPGC filed a case in the U.S. District Court under the New York Convention but Ghana failed to respond.
This prolonged delay led the company to secure a U.S. court judgment that awarded an additional $111.4 million in interest, which also remains unpaid.
Despite efforts to resolve the matter, the Government of Ghana has delayed payments, prompting GPGC to pursue legal enforcement of the arbitral award in various jurisdictions, including South Africa and the United States. Trafigura, GPGC’s parent company, is leading these efforts to secure compliance.
The company has already seized control of one of Ghana’s key commercial assets, Regina House in London.
However, the company disclosed that it remains open to resolving the issue through settlement, expressing hope for swift payment according to the agreed schedule.
