Prepare for the day of reckoning - Ablakwa to persons behind termination of GPGC contract

Member of North Tongu constituency, Samuel Okudzeto Ablakwa, has averred that the Akufo-Addo led government has authorized the release of a US$20 million which is equivalent to GH¢230.5 million for the payment of a judgement debt.

According to him, though government claims it does not have money to provide emergency housing for the affected Akosombo dam spillage victims, it however has money to foot a judgement debt created by government.

In a tweet sighted by GhanaWeb Business, he said the ministers who wrongfully terminated the Ghana Power Generation Company (GPGC) contract were poised for the day of reckoning.

"The Akufo-Addo/Bawumia/Ofori-Atta government claims it so broke that they cannot provide emergency housing for VRA-induced flood victims but fresh intercepted documents reveal that they have authorized the release of a staggering GHS230.5million (US$ 20 million) to pay for a judgment debt they recklessly & wickedly created," part of his tweet read.

"I hope the Ministers who wrongfully terminated the GPGC contract and willfully caused financial loss to Ghana are preparing for the day of reckoning," it added.

Trafigura, the majority owner of the power company GPGC, secured the award in January 2021 after an arbitral tribunal in London found that Ghana had unlawfully terminated a contract for the installation and operation of two power plants.

As a result, the Ghana High Commission building in the UK which provides visa and other services, the commissioner's residence, the Ghana International Bank building, and other properties are at risk of being auctioned to defray a $140 million judgment debt awarded to Singaporean firm Trafigura.

The government said the Finance Ministry has taken steps to liquidate the debt, but Ghana’s High Commissioner to the United Kingdom, Papa Owusu Ankomah, believes the financial constraints of the government are to blame for the default in the payment agreed with the judgement creditors.

Upon the advice of the Attorney General in 2017, the government terminated the deal on grounds that due to its attendant high tariffs, if implemented, it would have cost the state $115,480,000.

It also cited illegality for want of capacity of [GPGC] to enter into a PPA, failure to obtain siting and construction permits, installation of used plant contrary to policy, and failure on the part of GPGC to fulfil some conditions among others.

But the former Power Minister said of all the PPAs signed in 2016, the GPGC was the cheapest and had the shortest life span of four years.

SA/MA

Read Okudzeto Ablakwa's tweet below;

The Akufo-Addo/Bawumia/Ofori-Atta government claims it so broke that they cannot provide emergency housing for VRA-induced flood victims but fresh intercepted documents reveal that they have authorized the release of a staggering GHS230.5million (US$20million) to pay for a… pic.twitter.com/CdTzmTlOaY

— Sam Okudzeto Ablakwa (@S_OkudzetoAblak) December 13, 2023