Fresh documents released by Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, indicate that the government has allocated a substantial amount of money for the settlement of a judgment debt owed to the Ghana Power Generation Company (GPGC).

In a tweet, the outspoken MP lambasted the government for failing to provide emergency housing for victims of the Volta River Authority (VRA)-induced floods, yet has issued the release “of a staggering GHC230.5 million (US$20million) to pay for a judgment debt they recklessly & wickedly created.”

Attached to the tweet is a payment slip signed by the Finance Minister, Ken Ofori-Atta, directing the Controller and Accountant General to release the funds “at an exchange rate of US$ 1 to GHc 11.5299 to the Chief Director, Ministry of Finance to enable the Ministry make part settlement of the arbitral award to GPGC limited.”

Mr Ablakwa also asked the "Ministers who wrongfully terminated the GPGC contract and willfully caused financial loss to Ghana" to prepare for the day of reckoning.

GCPC-GoG judgment debt

A High Court in the United Kingdom, months back, affirmed a judgment in favour of GPGC, a subsidiary of international commodities company, Trafigura.

The company sued the Ghana government over the termination of two power deals and was awarded a judgment debt of US$140 million by the court.

Ghana contended, however, that the company under existing laws had to serve the government through diplomatic channels contrary to a ruling that allowed them to use alternative service.

The High Court ruled that Ghana's move to invoke the State Immunity Act provisions as basis for which Trafigura could not serve them judgment debt documents via post and email, was untenable.

Trafigura, via email, went through the finance ministry in serving the court documents with all correspondence duly acknowledged and court dates agreed as GoG asked its lawyers to engage with the company.

"Trafigura, a multinational commodities-trading company based in Singapore, is the majority owner of GPGC, a power company which secured the award in January 2021 after an arbitral tribunal found that Ghana had unlawfully terminated a contract for the installation and operation of two power plants," Global Arbitration Review wrote in an October 13 publication.

In GPGC v The Government of the Republic of Ghana, GPGC was represented by James Willan KC and Catherine Jung of Essex Court Chambers, instructed by Stephenson Harwood.

Ghana was represented by Stephen Houseman KC and Luke Tattershall, also of Essex Court, instructed by White & Case.