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, according to reports from JoyNews.

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 Vice President of Imani Africa, Bright Simons, revealed on social media platform X (formerly Twitter) that Regina House has been placed under receivership by Trafigura, an assertion later confirmed by Joy News. Simons claimed that this information had been concealed by the Ghanaian government, stirring further controversy.

In an exclusive interview with Joy News, Ghana's High Commissioner to the United Kingdom, Papa Owusu-Ankomah, acknowledged that Trafigura will remain in control of Regina House until the full debt is settled. He urged for renewed negotiations to avoid further financial penalties, stating, "Until we pay in full or come into an arrangement to pay them, Trafigura will remain in control over the receivership of the Regina House and its proceeds." He also admitted that Ghana is facing severe financial challenges.

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.

This latest development has raised questions about Ghana's financial stability and the management of its international obligations as it continues to navigate economic challenges.