Regina House is one of Ghana's most important commercial properties
Trafigura’s Ghana Power Generation Company has reportedly taken over Ghana’s Regina House in London, following the failure of the government to pay up a $134 million judgment debt.
According to myjoyonline.com, its checks have confirmed reports that Regina House, one of Ghana’s most important commercial properties, is now under the ownership of Trafigura.
This report comes after the Ghanaian government was ordered to pay $111,493,828.92 along with obligatory post-judgment interest by a District of Columbia Court in the United States, which granted a Motion for Default Judgment in favour of Ghana Power Generation Company (GPGC).
Ghana disregarded a previous tribunal verdict from the United Kingdom, which led to this ruling.
After Ghana terminated a power purchase deal with Ghana Power Generation Company (GPGC) on February 18, 2018, a UK tribunal found on January 26, 2021, in its Final Award, that Ghana had broken its contractual duties.
According to Ghana, the contract was terminated because the foreign power company did not fulfil certain contractual obligations.
The tribunal, however, disapproved and granted GPGC $134,348,661 in damages, which were computed using the purchase agreement’s Early Termination Payment formula.
The award includes compensation of GPGC’s arbitration fees and expenses in the amount of $3,309,877.74, with interest at three-month USD LIBOR, compounded quarterly, and an interest rate of six-month USD LIBOR + 6%.
Following fruitless attempts to obtain the outstanding payment from Ghana, GPGC filed a lawsuit on January 19, 2024, in the U.S. District Court, claiming recovery of the mounting debt under the Federal Arbitration Act’s Chapter 2 and the New York Convention.
About the seizure of Regina House:
At least five properties of the Government of Ghana (GoG) in the UK were attached to the judgement, which Trafigura has been given the power to sell in order to raise the amount of money the court has ordered Ghana to pay them.
The High Commissioner of Ghana to the United Kingdom (UK), Papa Owusu Ankomah, has confirmed that the properties of the government of Ghana in the UK are likely to be sold due to a failure to pay the judgement debt owed to Trafigura.
He, however, indicated that out of the five properties of Ghana in the UK that were attached to the judgement, only one is likely to be sold - Regina House, which is used for commercial purposes.
The remaining properties, including the High Commissioner’s residence, the High Commission, and the chancery, are all being used for diplomatic purposes and are covered by diplomatic immunity.
Regina House is located in Central London. It is a six-storey building which is managed wholly by the government of Ghana.
Currently, it is being rented by the Ghana International Bank, two other banks, and another commercial entity.
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