Attorney General Calls for Reforms in Arbitration Laws as Ghana Dodges $9 Billion in Arbitration Claims
Ghana narrowly avoided paying out an estimated $9 billion in arbitration claims over the past four years, according to Attorney General Godfred Yeboah Dame.
Addressing the Public Sector Lawyers Conference on November 5, 2024, the Attorney General highlighted how these claims, had they been successful, could have had a severe impact on Ghana’s economy.
“Over the past four years, the value of arbitral cases against the Republic has been in excess of $9 billion,” Mr Dame stated.
He cited several high-stakes cases that, if lost, would have placed substantial financial pressure on the nation. Among these cases is a financial claim of $7 billion by ENI Vitol against Ghana, which was eventually reduced to $915 million after the government successfully challenged the claim in court.
“Any of these amounts could have collapsed the Ghanaian economy,” he said, commending the legal efforts that led to the dismissal of these claims by international arbitration tribunals.
In his address, the Attorney General referenced multiple disputes involving the Ghanaian government, including a 2020 arbitration case with the International Finance Corporation (IFC) over energy sector investments.
Other notable cases involved a 2019 dispute between the Ghana National Petroleum Corporation (GNPC) and Aker Energy, a Norwegian oil firm, and a 2018 case with Kosmos Energy regarding tax provisions in offshore oil exploration contracts.
The Attorney General speaking at the Conference, urged reforms to the country’s arbitration laws to strengthen the state’s defenses in future cases, advocating for improved contract management practices to avoid such costly disputes.
“We must reform the laws governing arbitration and civil claims against the state while taking a critical look at contracting and contract management on behalf of the state,” he advised.
The Attorney General’s remarks come amid ongoing concerns over Ghana’s exposure to significant international arbitration claims, underscoring the importance of legal reforms in safeguarding the nation’s economic stability.
