Papa Owusu Ankomah, Ghana's High Commissioner to the UK, has provided an explanation of what will happen to the Ghana International Bank's operations in London in the wake of the $140 million Trafigura judgment debt.
Even though the shareholders are government organizations, he claimed that the Bank is a separate legal entity from the Ghanaian government.
A court in the United Kingdom fined Ghana $140 million in 2021 for terminating a power contract with GPGC.
As a result, the court ordered the government to pay the full amount of the Early Termination Payment, which was $134,348,661, as well as the "Mobilization, Demobilization, and Preservation and Maintenance Costs" associated with the value. Ghana was also mandated by the court to pay all interest that has been accumulated since then.
The expense of the arbitration as well as the legal fees incurred by GPGC, which totaled more than $3 million, were also demanded from the government.
Oil trader Trafigura is now in a position to sell Ghana's assets in the UK in order to recover the money that the Ghanaian government owes it.
Papa Owusu Anomah said Joy FM, in response to a question concerning the Ghana International Bank's operations, "The Bank is a separate entity from the government of Ghana even though the shareholders are agencies of the government."
"They have access; they are still employed; nobody, including the other occupants in the premises, has been expelled. I can attest to that. Even before the actual order was given to our office, the Bank briefed me about it. I know we submitted it to the Ministry of Finance, and I've had some conversations about it with various government officials.
Even the judgment creditor has a stake in settling the debt because doing so by seizing specific government properties will make it difficult to obtain the funds, he claimed.
"The former Attorney General blamed this situation on the financial challenges the country is facing, without going into specifics about the decision to terminate a contract that brought about this mess."
"The unfortunate situation that we find ourselves in is a result of our severe financial strain," he continued. A portion of the money was paid, but due to the financial crisis, we were unable to continue beyond a certain point.
"I don't believe we would have purposefully ignored this liability. When you are struggling financially, payments come first. I am speaking from experience because I have served in government before. Will you no longer import oil due to this debt? Do you no longer pay salaries? Thus, it makes sense that we're in this predicament given these financial difficulties, I'm sure.
The former Sekondi congressman stated, "As far as I am aware, it's only Regina House that is used for commercial purposes because it's been rented by the Ghana International Bank, two other banks, and another commercial company, in regards to the $140 million judgment debt itself. It has been attached, so that is the one. All other properties are immunised and classified as diplomatic properties.
"I heard that you mentioned the residence of the High Commissioner, but that is being utilized for diplomatic purposes. Similarly, the chancery that you are referring to has not been attached. However, I'm positive that the government is moving to pay down that debt.
"It's unfortunate that we've reached this stage," he continued. It seems that the Finance Minister is not holding brief for our nation's financial situation, which may have prevented the Finance Ministry from honoring the commitment to pay the loan in installments. However, I am aware that the Finance Ministry is currently negotiating the judgment creditor's liquidation of this obligation with attorneys.
As the High Commissioner, I find it embarrassing that this is making the rounds on the internet and in Ghanaian media, and that it is a topic of conversation. It's serious, but even for private company owners, there comes a point at which you have to pay bills first if you don't have access to credit and the money you're making doesn't cover your bills. Of fact, the government could have declared, "We'll pay this debt, but we won't be paying some employees."
"This is just the beginning," he continued. It's a lengthy procedure. It's not like Regina House, for example, is under lease, so it can't be done today or tomorrow. Despite being long-term, the lease only has five or six years left on it, and an extension is being discussed.
However, I can guarantee Ghanaians and you that the Ministry of Finance is handling everything expertly. It's not as if they are going to evict the Ghana High Commission and its staff from its premises, or the High Commissioner from his residence, or the tenants in Regina House from their homes, no; the creditors are interested in their money and it won't be easy selling these properties.
"They will manage it in some way until they get the money back, so it's just a way to put pressure on the government to pay the judgment debt, which I'm sure is being arranged for."
