A recent U.S. District Court document reveals that Ghana’s legal team made a series of errors that prevented them from contesting a $134 million judgement awarded to the British energy company Trafigura.
English courts issued this judgement due to a complex dispute over a power purchase agreement between Trafigura’s subsidiary, Ghana Power Generation Company (GPGC), and the Ghanaian government.
The UK tribunal’s decision on January 26, 2021, found that the Ghanaian government breached its contractual obligations by unilaterally terminating the contract on February 18, 2018, and ordered Ghana to pay GPGC an early termination fee of $134,348,661.
The tribunal also instructed Ghana to cover GPGC’s arbitration costs totalling $3,309,877.74, with interest calculated at the three-month USD LIBOR rate, compounded quarterly, adding financial strain to the country.
Despite the tribunal’s clear ruling, Ghana responded inadequately. The government made only partial payments of $1,897,692.40, leaving a remaining balance of $111,493,828.92, with interest continuing to accrue.
The situation grew more complicated when Ghana tried to challenge the UK judgement in U.S. courts. Chief Judge James E. Boasberg’s memorandum from August 6, 2024, highlights that Ghana’s legal team missed crucial deadlines to contest the award in the UK, leading to significant repercussions.
