The Government of Ghana is currently facing the possibility of losing some of its properties in the United Kingdom.
This comes after a $140 million arbitral award was given to GPGC, a subsidiary of Trafigura, an international commodities company.
The award was a result of the termination of a power deal in 2021. At least five properties owned by the Ghanaian government in the UK have been seized due to this judgement, and Trafigura has been given permission to sell them in order to recover the court-ordered payment from Ghana.
Papa Owusu Ankomah, the High Commissioner of Ghana to the UK, has confirmed that these properties are at risk of being sold because Ghana has failed to pay its debt to Trafigura.
Out of the five properties, only one is likely to be sold, and it is called Regina House.
Regina House is located in Central London and is a six-story building that is fully owned and managed by the Ghanaian government.
Currently, it is leased by the Ghana International Bank, two other banks, and another commercial entity.
The remaining properties, including the High Commissioner’s residence, the High Commission, and the chancery, are used for diplomatic purposes and are protected by diplomatic immunity, which means they are not affected by the judgement.
The potential sale of Regina House and the resulting financial loss highlight the significant financial challenges that Ghana is facing and the consequences of unresolved international disputes.
It also emphasises the importance of adhering to contractual agreements in international business dealings to avoid expensive judgements and property seizures.
As Ghana deals with this complex situation, it remains to be seen how the government will respond and work towards a resolution that minimises the impact on its assets and resources.
