Recent revelations have sparked concerns regarding the involvement of Dominic Ayine’s law firm in the controversial GPGC (Ghana Power Generation Company) contract.

Documents obtained indicate that the law firm of Ayine & Felli, where Edudzi Tamekloe now practices, was the registered office for GPGC when it signed a contract with the Government of Ghana (GoG) in 2015 under the John Mahama administration.

Some individuals are questioning the potential conflict of interest given Dominic Ayine’s role as Deputy Attorney-General at the time. Ayine was involved in brokering numerous energy deals, including the Ameri Power deal, and now, his firm's close association with GPGC raises eyebrows.

This development has birthed speculation as to whether the terms of the GPGC agreement were deliberately designed to favor the company, especially given the harsh financial penalties involved in its termination.

Conflict of Interest?

The firm representing GPGC at the time of the Energy Purchase Agreement (EPA) with GoG in June 2015 per the letter was Ayine & Felli, a law firm linked to Dominic Ayine, then serving as Deputy Attorney-General under the NDC government. In recent weeks, the loud voices from some NDC-affiliated lawyers, particularly Edudzi Tamekloe, in defending the GPGC judgment debt issue have sparked debates. Many are asking if their vested interest stems from the fact that the firm's association with GPGC was established while the contract was in force.

According to a letter dated July 2, 2015, the firm’s address was listed as the official office for GPGC. This close link raises questions about whether the negotiation of the GPGC contract, which resulted in Ghana paying substantial termination fees, was compromised due to insider influence.

Judgment Debt Scandal

Documents from 2015 reveal that Ayine & Felli, the law firm of Dominic Ayine, was listed as the registered office of GPGC Limited when it entered into an Energy Purchase Agreement (EPA) with the Government of Ghana. This association has come under scrutiny following a judgment debt awarded against the country, with many questioning whether the poor negotiation of the contract's termination terms was deliberate.

With Ayine playing a critical role in Ghana’s energy deals as Deputy Attorney-General, some critics argue that the law firm’s involvement with GPGC may have influenced the terms of the deal, resulting in the substantial financial burden Ghana now faces.

Ghana's Regina House in London, one of the nation's key commercial properties, has been taken over by Trafigura's Ghana Power Generation Company (GPGC) due to the government's failure to settle a $134 million judgment debt.

This development follows a prolonged four-year effort by Trafigura to recover funds after Ghana abruptly terminated a power purchase agreement with the energy firm.

Despite repeated attempts to secure payment, Trafigura was forced to obtain a ruling from a U.S. District Court, adding $111.4 million in mandatory interest to the arrears. This legal outcome compounded Ghana's debt, exacerbating its financial obligations.

The legal dispute began on January 26, 2021, when a UK tribunal awarded GPGC $134.3 million after determining that Ghana had breached its contractual obligations by terminating a power purchase agreement on February 18, 2018. Ghana had argued that GPGC failed to meet certain contractual conditions, but the tribunal disagreed, awarding GPGC damages based on an Early Termination Payment formula.

The tribunal's award included an interest rate of six-month USD LIBOR plus 6% and reimbursement of GPGC’s arbitration costs amounting to $3.3 million. Although Ghana made partial payments totaling $1.89 million, a significant balance remains unpaid.

In a bid to recover the remaining funds, GPGC filed a case in the U.S. District Court in January 2024 under the New York Convention, seeking to enforce the arbitral award. Ghana failed to respond to the court's petition and missed the March 29, 2024 deadline, leading to a ruling in GPGC's favor. Chief Judge James E. Boasberg confirmed that the U.S. court had jurisdiction under the New York Convention, which requires member states to recognize and enforce arbitral awards, regardless of location or nationality.

While the U.S. court did not grant pre-judgment interest, it awarded post-judgment interest at a rate specified under U.S. law, further increasing Ghana's financial burden. As a result, Trafigura now controls Regina House until Ghana can resolve the debt crisis.

Recent development

Trafigura has petitioned Ghana's Finance Minister, Dr. Mohammed Amin Adam, threatening to seize Ghana's assets in South Africa if the debt remains unsettled.

In its petition submitted on September 23, the energy firm requested an immediate settlement and warned of further legal action to recover the funds if the government fails to comply.

The petition expresses frustration over the government's delay in resolving the debt, despite multiple attempts at negotiation.

"We would nevertheless like to reiterate the message of our previous correspondence, that we would prefer not to take any further enforcement action and instead to resolve the matter amicably by fully executing the settlement agreement, as soon as possible, ideally within this week, and receiving payment in accordance with the agreed schedule," the letter read.

Per the letter in question, it is not public knowledge of the exact assets in South Africa that the company seeks to secure.