Former Power Minister Dr. Kwabena Donkor has urged the next administration to conduct a comprehensive investigation into the payment of judgment debts. This follows criticism of the current government’s handling of a $111 million judgment debt case.
Dr. Donkor voiced his concerns during an interview with Alfred Ocansey on TV3’s Ghana Tonight on August 21, 2024.
Dr. Donkor’s call for scrutiny comes after the termination of a contract that resulted in the substantial judgment debt awarded against Ghana by a U.S. court.
He expressed dissatisfaction with the government’s decision not to contest the debt and emphasized the need for accountability.
“Going forward, must we allow public officials to incur such costs to Ghana through negligence, incompetence, or sheer insensitivity?” Dr. Donkor questioned.
He expressed a desire for the next government—preferably the National Democratic Congress (NDC), though he acknowledged it might not be— to investigate the debt and hold responsible officials accountable thoroughly.
Dr. Donkor criticized the government’s failure to defend itself in the case, suggesting that the Attorney General’s Office might have deemed the case unwinnable.
“It could be that the Attorney General realized it was a bad case,” he said, questioning why the Attorney General and the Ministry of Energy did not take a more active role in defending the government.
He also criticized the decision to cancel the contract, which led to the judgment debt, calling the government to acknowledge its errors and seek new commitments from Trafigura.
“The government must eat humble pie and engage Trafigura to make new commitments and stick to them,” he said.
The judgment debt arose from failing to comply with a tribunal decision in the United Kingdom fully.
On August 21, 2024, a U.S. District Court awarded $111,493,828.82 in favour of Ghana Power Generation Company (GPGC), adding mandatory post-judgment interest.
This follows a 2021 U.K. arbitral award of $140 million against Ghana for terminating a power deal.
Ghana’s failure to meet an instalment payment plan influenced the court’s decision, and GPGC is seeking recovery under U.S. law.
Despite partial payments, Ghana still needs to settle the debt fully, prompting GPGC to pursue additional legal action.
Deputy Attorney General Alfred Tuah Yeboah acknowledged that the government struggled to meet the complete instalment plan while part of it was being made.
The Ministry of Finance has been advised to continue efforts to settle the outstanding balance.
Dr. Donkor, representing Pru-East, assured that a future NDC administration would investigate all such judgment debts and hold those responsible for financial losses accountable.
“My recommendation is that whichever government comes into power in January 2025, it must review all such judgment debts, establish culpability, and ensure that public officials who let the country down are held accountable,” he stated.
The ongoing legal battles and financial implications underscore the need for effective management and oversight in handling public contracts and international arbitration outcomes.
