Ablakwa rebukes govt over GPGC judgment debt, $20million part payment

Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, believes the government made a reckless decision by terminating a power purchase agreement with the Ghana Power Generation Company (GPGC), leading to Ghana being slapped with a $170 million judgment debt.

The GPGC agreement was canceled by the Akufo-Addo government, following recommendations by a committee set up to review all power agreements during the severe power crisis of the National Democratic Congress era.

The contract termination, resulting in a $170 million judgment debt against Ghana, has triggered criticism against the government.

In a Facebook post, the MP disclosed that he intercepted a letter indicating that the government, through the Ministry of Finance, has ordered the payment of US$20 million as part payment for the US$170 million judgment debt.

“The Akufo-Addo/Bawumia/Ofori-Atta government claims it so broke that they cannot provide emergency housing for VRA-induced flood victims but fresh intercepted documents reveal that they have authorized the release of a staggering GHS230.5million (US$20million) to pay for a judgment debt they recklessly & wickedly created,” he said.

A letter signed by Minister Ken Ofori-Atta, dated November 11, 2023, ordered that the said sum be released as part of settlement of the arbitral award to GPGC.

During an interview on Eyewitness News, Ablakwa lamented the missed opportunity to build emergency resettlement centres for Akosombo flood victims with the judgment debt.

“Akufo-Addo and his cabinet will have to explain to Ghanaians why they have brought us here. We would not have had to be saddled with this judgment debt if not for the termination of the contract by the Akufo-Addo government, which the courts both in Ghana and London have determined unlawful. They have not minced words that the abrogation was wrongful, reckless and that is what has caused this arbitrary award of a staggering $170 million, imagine what this money can do.”

He stressed, “We are struggling to construct emergency houses for VRA-induced flood victims. We have only managed to finish one. We are scrambling all over the place, pleading with donors, and begging philanthropists. The very important needs of our people cannot be met.”

The MP for North Tongu slammed the government for neglecting the welfare of Ghanaians, by making a ‘reckless decision’ which is going to adversely affect the taxpayer, adding that the termination of the contract was avoidable.

“This is totally avoidable if they had allowed this PPA contract to run its terms, for five years, Ghana would not have had to be saddled with this. Because of the reckless decision of the Akufo-Addo/Bawumia cabinet to abrogate this contract, we now, per the documents I have intercepted, the Finance Minister has begun payments. Sometimes, when you see the recklessness and the bad decisions of some of our leaders, you wonder. It’s the taxpayers who bear the brunt.”

He suggested to the government to appeal to bring the figures down.

“They should appeal to bring the figures down,” he opined.

The Ghana Power Generation Company dragged the Government of Ghana to the United Nations Commission on International Trade Law (UNCITRAL) after an official termination in 2018, demanding compensation from the government for a breach of the contract.

The court subsequently awarded the company an amount of $170 million to be paid by Ghana.

Ghana challenged the arbitration award in a UK court but could not meet the deadlines to file its case, citing the COVID-19 pandemic among others as reasons for the delay.

A High Court in the United Kingdom, months back, affirmed a judgment in favor of GPGC, a subsidiary of the international commodities company, Trafigura.

—citinewsroom