https://www.myjoyonline.com/ghanas-assets-at-risk-due-to-governments-mishandling-of-trafigura-judgment-debt-bright-simons/-------https://www.myjoyonline.com/ghanas-assets-at-risk-due-to-governments-mishandling-of-trafigura-judgment-debt-bright-simons/
Regina House

The Vice President of IMANI Africa, Bright Simons, has in a critical opinion piece expressed deep disappointment in Ghana's High Commissioner in London.

He accused him of downplaying the severity of the Regina House issue and failing to adequately advise government.

Mr Simons argues that government's mishandling of a legal dispute with Oil conglomerate Trafigura, which resulted in Regina House being placed under receivership, puts Ghana's assets at significant risk.

Read also: U.S. court awards $111m to Trafigura in judgment debt default against Ghana

He provides a detailed account of the situation, beginning with the history of Regina House, a property acquired by Ghana's first president, Osagyefo Dr Kwame Nkrumah, in 1961 for the Ghana Commercial Bank.

Oil conglomerate Trafigura’s Ghana Power Generation Company has taken over one of the country’s most important commercial properties in London, following the failure of the government to pay up a $134 million judgment debt.

For four years Trafiguara has been unsuccessful in getting the government to pay up the judgement debt awarded to the energy firm after the abrupt termination of a power purchase agreement.

This situation forced Trafigura to secure another judgement in the United States courts which awarded a mandatory interest on the default of $111.4 million which remains the arrears to be paid by Ghana.

Vice-President of Imani Africa, Bright Simons

Read also: Trafigura ‘seizes’ Ghana’s Regina House in London over $134m judgment debt default

Attorney General Godfred Yeboah Dame has told Joy News it is up to the Finance Ministry to expedite action on the payment.

The foregoing has left Bright Simons disappointed.

He said over the years, the building has served various state affiliates and has become a symbol of Ghana's international presence.

However, the situation took a turn for the worse after Ghana lost an arbitration dispute with Trafigura in 2021, which Mr Simons believes should never have been entered into in the first place.

Despite securing a deed of release from the City of London in 2015, the government has since struggled to manage the fallout from the arbitration loss.

"The government failed to show up in court to negotiate payment terms or delay the enforcement of the judgment. Instead, it waited until after a charging order was issued against Regina House before taking any action," Bright Simons wrote.

Read also: US court uncovers Ghana made ‘intrinsically weak’ appeals in $134m judgement debt to Trafigura

He pointed out that nearly $2 million in rent has already been paid to Trafigura as a result of the receivership.

Simons also criticised the Attorney General for failing to defend against other enforcement suits in the Netherlands and the United States, leading to a situation where Ghana has paid nearly $90 million without reducing the original debt significantly.

Read also: Bright Simons: Diplomatic missteps and government complacency endanger Ghana’s assets in London

"The original debt amount of approximately $138 million has barely reduced, and Ghana's assets remain vulnerable to further seizures," he warned.

Simons concluded by urging government officials to stop spinning the situation and to take the necessary steps to protect Ghana's assets.

"This is not the time for spin and points scoring. Senior government officials need to be serious," he stated.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.