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General News of Thursday, 24 June 2021


$170m judgement debt: AG would’ve found a way out in Ghanaian court – Mutawkilu

Adam Mutawkilu is a former Ranking Member for the Mines and Energy Committee of Parliament Adam Mutawkilu is a former Ranking Member for the Mines and Energy Committee of Parliament

A former Ranking Member for the Mines and Energy Committee of Parliament, Adam Mutawkilu has taunted Ghana’s Attorney General over the $170 million judgment debt case saying he would have won if the case was tried in Ghana.

According to him, the AG would have resorted to means and ways to win the case.

“We looked at it meticulously and realized that it has met all the conditions and parliament approval was condition precedent. So for me, there was no need for government to have cancelled the project. No! And they know that when it goes anywhere in the world, government will lose. Then probably they thought it will be handled in Ghana. Maybe they can flex their muscles to find their way out,” the former lawmaker told Francis Abban on the Morning Starr Thursday.

The Attorney General has however blamed the erstwhile Mahama administration for the situation.

Background to the arbitration

The International Court of Arbitration in January 2021 awarded a cost of $134 million and an interest of $30 million against the Government of Ghana over the cancellation of an Emergency Power Agreement with GCGP limited.

The Contract was cancelled under the former Energy Minister Boakye Agyarko as part of several other energy contracts cancelled by the NPP on the basis that the country did not need those power agreements.

The ruling by the International Court of Arbitration ordered the government to Ghana to pay to “GPGC 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 Government of Ghana was also to pay GPGC an amount of “US$ 309,877.74 in respect of the Costs of the Arbitration, together with US$ 3,000,000 in respect of GPGC’s legal representation and the fees and expenses of its expert witness, together with interest on the aggregate amount of US$ 3,309,877.74 at the rate of LIBOR for three-month US dollar deposits, compounded quarterly.”