Don’t blame me for US$134 million judgement debt – Boakye Agyarko

Boakye Agyarko, a former Energy Minister has disclosed that the cancellation of Ghana’s power agreement with GCGP Limited which has led to the birth of a US$134 million judgment debt did not occur under his watch.

He is unhappy and surprised that his name has been linked with the abrogation of the deal despite not having powers to do so at the time.

Speaking in an Oman FM interview monitored by GhanaWeb, Boakye Agyarko explained that at the time of the cancellation of the deal, he was no longer serving as Energy Minister.

“I just realized that they had filed for arbitration on August 11, 2018. This was after I had left the ministry. I never knew they had gone for arbitration. I am told that the government presented itself at the arbitration. How would someone accuse me of cancelling the contract? I have not cancelled any contract, I don’t have the power nor the need or desire to cancel it. I am for what will help Ghana,” he said.

The GCGP which is one of many emergency power agreements signed under the Mahama administration to curtail the infamous power outages referred to as "dumsor" was reportedly abrogated by the former Energy Minister.

The reason for the cancellation according to reports was because the country was incurring losses from the deal despite not needing it.

Unhappy with the cancellation, GCGP sought redress from the International Court of Arbitration and a ruling was made in their favour that Ghana should pay the company $134 million-plus US$30 million interest.

Meanwhile, the Institute of Energy Security (IES) has given reasons as to why the $134 million judgment debt is a major setback for the country’s finances.

Beatrice Annan who is a fellow at the IES said on Accra-based Citi FM: “... it means that the country will have to use taxpayers’ money in excess of US$134 million to pay the foreign entity, which is GPGC. It further means that, as a struggling economy as we are, the government will have to cough up another US$30 million to pay interest.” “Beyond the financial damage that has been caused to the country, it also damages our reputation. So the international community will begin to look at Ghana with another eye and for us, we think that it is not a good brand to build as a nation,” she bemoaned.