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A Vice President of IMANI Africa, Bright Simons, has said that Ghana needs a totally new regime to guide officials when entering into an international contract with high-performance standards.
He also suggests that technical analysis involving commercial risks in the government of Ghana legal engagements should be subject to review by independent analysts not beholden to the same government.
Following the failure of the Government of Ghana to fully comply with an earlier tribunal decision from the United Kingdom, a District of Columbia Court in the United States has awarded a $111,493,828.82 judgment debt against Ghana in favour of the Ghana Power Generation Company (GPGC).
The court, in granting the Motion for Default Judgment in favour of GPGC, also ordered Ghana to pay mandatory post-judgment interest.
In a post on his X platform, Bright Simons said that “Because of a decision to pay in bits, outside an agreed payment plan, Ghana had paid nearly a $100m, but the original debt has barely reduced? Yes, that’s the sheer power of compound interest!
“Despite assurances by the High Commissioner in the UK that ongoing negotiations will prevent Trafigura from seizing govt properties in the UK, the country’s biggest property in Central London, Regina House, is already in receivership & all rent payments now go to Trafigura? 3. The Energy Commission Boss advised the govt that terminating the deal will only cost Ghana $18m, which is lower than the ~$100m Ghana was required to pay for power over the 4 year contract term, power that apparently Ghana didn’t need? On what was this analysis based when the investor’s costs hadn’t even been fully analysed?”
He added “The interagency chaos should be minimised through some kind of prior interagency committee once the subject matter of the contract foresees any interagency processes. Too many government workers have become used to being “sorted” before they “facilitate” any government-interfacing business that requires the least amount of effort. Officials taking advantage of interagency chaos to compound the country’s risks has been a constant feature in arbitral awards against Ghana, dating back, at least, to the late 80s when Antoine Biloune took Ghana to arbitration, also in Washington DC. Until this situation is removed through better operational design, more of these international judgment debts will come.
“Technical analysis involving commercial risks in government of Ghana legal engagements should be subject to review by independent analysts not beholden to the same government. The sheer lack of transparency in most government business breeds serious mediocrity. Good money should never be thrown after bad money. Whenever it is clear that a government agency is in the wrong, there must be some preventive mechanism within the Presidency that can expedite settlement regardless of which part of the government is involved. For example, why is the government continuing to drag out payment when it is not defending the case anymore, and thus allowing interest to pile? By the end of this year, Ghana is likely to have paid out an amount of money equivalent to the original arbitral award, yet the outstanding liability would not have changed from the time the award was issued.”
Meanwhile, Ghana’s High Commissioner to the United Kingdom (UK), Papa Owusu-Ankomah has said that Regina House, which is one of Ghana’s properties in London, is still owned by the government of Ghana.
Reports had indicated that Oil conglomerate Trafigura’s Ghana Power Generation Company (GPGC) has taken over the Regina House in London, following the failure of the government to pay up a $134 million judgment debt.
But Mr Owusu-Ankomah said the property is just under receivership until the debt owed the company is paid.
It has not been sold, neither a notice has been served to sell to defray the debt, he stressed.
“…An application for receivership had been made in respect of some properties belonging to Ghana. Of the properties which is the subject matter of the charge, only one, Regina House is used for commercial purposes.
“The others have been described as diplomatic properties so these properties are not under threat but even with the one which is the subject matter of the receivership, that is Regina House, I know negotiations are ongoing between Ghana and the judgment creditors GPGC to pay, but as of now Regina House is the property of the Government of Ghana, it is at the receivership.”
He further indicated the rent does not go to the government of Ghana because the building is under receivership.
“The rent doesn’t go to the Government of Ghana because Regina House is under receivership but Regina House is still owned by the government of Ghana. We are not receiving any money as a result of renting that property because of the judgment debt but the rent that is being paid is nowhere near the amount owed.
“Legally, the property is still the government of Ghana property. What it is is that the charging order gave the management of the property to GPGC solicitors or property appointees until the debt is paid, they cannot even sell the property, they haven’t even applied to sell the property to defray the judgment debt,” he told Joy News on Thursday, August 22.
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