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Abrogating GCGP deal saved us more; we’ll probe $170m judgement debt – Dame.

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Abrogating GCGP deal saved us more; we’ll probe $170m judgement debt – Dame. 46

 

 

The Attorney General, Godfred Dame, has stated that processes are underway to thoroughly probe circumstances that led to Ghana being slapped with a $170 million judgement debt after the cancellation of a power purchase agreement with GCGP limited.

Speaking on the Point of View, Mr. Dame said he is duty-bound to ensure that the case is investigated and persons found culpable duly prosecuted.

He said the probe is not targeted at any particular individual, and that it is in the interest of the State to bring clarity on issues such as the relevance of the agreement and the cost.

“I have indicated that first and foremost we are going to refer part of the process for examination by the CID, and that enquiry will even establish whether it was necessary for the agreement to be entered into, whether indeed it was expensive,” he said.

Godfred Dame said “I would be enjoined by duty to prosecute…. To ensure that there is due administration of justice in the country. This has nothing to do with any personalities or characters in question. ”

A Commercial Court in London earlier this month rejected an appeal from Ghana against a $170 million judgement debt awarded a contractor, The Ghana Power Generation Company (GCGP).

The International Court of Arbitration ordered the government of Ghana to pay to “GCGP the full value of the Early Termination Payment, together with Mobilization, Demobilization and preservation and maintenance costs in the amount of US$ 134,348,661, together also with interest thereon from 12 November 2018 until the date of payment, accruing daily and compounded monthly, at the rate of LIBOR for six-month US dollar deposits plus six per cent(6%).”

The judgement has sparked serious conversations, especially as it comes barely a month after Ghana secured a €170m loan facility for the establishment of a development bank.

The Akufo-Addo government cancelled the GPGC agreement upon recommendation from a committee it set up to review all the power agreements the country had entered into.

After the official termination in 2018, the company dragged the government of Ghana to the United Nations Commission on International Trade Law (UNCITRAL) Tribunal to demand that the government compensate it for breaching the contract.

The court awarded the company an amount of $170 million to be paid by Ghana, but Ghana in taking its chance challenged the arbitration award in a UK court but could not meet the deadlines to file its case citing among other things the outbreak of COVID-19.

‘A better option’

Meanwhile, the AG says the decision to cancel the contract saved the country so much more and so it was a better option.

“The state clearly was saved incalculable financial loss by the decision taken by the NPP. The report shows that if all the agreements had been allowed to run, we were going to suffer $17.6 billion over the period and $516 million per year.”

“That legal decision taken in the context of the global solution of saving the nation an amount of $17 billion over 12 years or $516 million over one year for me was better,” Godfred Dame said on Point of View.