Trafigura Gives Gov’t 1-Week Ultimatum to Settle $111 Million Debt or Face Seizure of South Africa and US-based Assets
Government has been warned by Trafigura’s Ghana Power Generation Company (GPGC) that it could face the seizure of assets in South Africa and the United States if it fails to settle an outstanding $111 million debt tied to a power purchase agreement dispute.
In a letter addressed to Finance Minister Dr. Mohammed Amin Adam, the GPGC called on the government to honour the remaining portion of a $134 million judgment awarded by a UK tribunal in 2021.
The legal battle stems from Ghana’s decision to unilaterally terminate its power purchase agreement with GPGC in February 2018.
A UK tribunal subsequently ruled in favour of GPGC in January 2021, ordering the government to pay $134 million in compensation for breach of contract. Although Ghana has made an initial payment of $23 million, a further $111 million remains unpaid.
GPGC’s letter, which was also copied to Attorney General Godfred Yeboah Dame, gave the government a deadline of the end of this week to settle the arrears, warning that failure to do so could trigger enforcement actions.
“We would prefer not to take further enforcement action and instead resolve the matter amicably,” the company wrote, but cautioned that legal avenues remain open.
This is not the first time GPGC has moved to recover its dues. In August 2024, the company briefly seized Ghana’s Regina House in London after the government defaulted on a payment schedule, eventually leading to a partial settlement.
The GPGC’s warning comes as the government grapples with a series of financial challenges, underscoring the growing risk of asset seizures amid ongoing disputes.
