Trafigura $140 million judgment debt: I'm embarassed — Papa Owusu Ankomah

Ghana's High Commissioner to the United Kingdom, Papa Owusu Ankomah, expressed embarrassment over the situation with the country's judgment debt payment to Trafigura, a Singaporean commodities-trading company.

The company secured a $140 million award after an arbitral tribunal found Ghana unlawfully terminated a contract for two power plants. Assets, including the Ghana High Commission’s building, are at risk of auction to offset the debt.

Deputy Attorney General Alfred Tuah-Yeboah stated that the Finance Ministry is working to liquidate the debt, acknowledging a lapse in adhering to the installment agreement.

Papa Owusu Ankomah confirmed that only one building, Regina House, has been attached, clarifying that diplomatic properties enjoy immunity. While alarmed, he assured Ghanaians that negotiations were underway to settle the debt and downplayed immediate eviction concerns.

The High Commissioner attributed the situation to Ghana's financial challenges and prioritisation of payments.

"As far as I am aware, it's only Regina House which is used for commercial purposes because it's been rented by the Ghana International Bank, two other banks and another commercial entity. That is the one that has been attached. All other properties are diplomatic properties and covered by immunity", he said to Joy News, adding that the Commissioner's residence is also immune from such attachments, likewise, the chancery.

He said he was "sure the government is taking steps to liquidate that debt."

He added: "It's unfortunate that we've come to this stage. It appears our financial circumstances as a country probably, are not holding brief for the finance minister, and that may have constrained the Finance Ministry from honouring the obligation to pay the debt by instalment. But, I am aware that the Finance Ministry is presently engaged in negotiations with lawyers for the judgment creditor to liquidate this debt".

"It's embarrassing; I am embarrassed as High Commissioner for this thing to appear on the internet and everything, and be a subject matter of discussion in Ghana and in the Ghanaian media here. It's serious, but even for those in private business, it gets to a stage you have to prioritize payments when you don't have access to credit and monies being generated do not meet your obligations. Of course, I am sure government could have said that we will pay this debt, and not pay some workers."

"This is just the beginning. It's quite a process. It’s not as if it can be done either today or tomorrow because Regina House for instance is on a lease. Even though it's for a long time, it's got about five or six years to run, and there are negotiations to extend the lease."

"But I can assure you and Ghanaians that the Ministry of Finance has things well in hand. The creditors are interested in their money and it's not going to be easy selling these properties, so it's not as if tomorrow they are going to evict the Ghana High Commission and its staff from its premises, or the High Commissioner from his residence or tenants in Regina House are going to be evicted, no. They are going to manage it somehow till they recover the money, so it's just a way of pressurizing government to pay the judgment debt which I am sure the arrangements are being done," he noted.

Trafigura obtained the final award in January 2021, leading to the ongoing legal process for debt enforcement, including attempts to attach London properties.

The Ministry of Finance is engaged in negotiations to resolve the matter.

-Classfmonline