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The Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has strongly criticized the government’s handling of the termination of a power purchase agreement with the Ghana Power Generation Company (GPGC), resulting in a $170 million judgment debt against Ghana. Ablakwa believes this decision was reckless and avoidable.
The cancellation of the GPGC agreement by the Akufo-Addo government, based on recommendations during the National Democratic Congress era, led to a significant financial burden for Ghana. A letter intercepted by Ablakwa revealed that the Ministry of Finance authorized a $20 million payment as part of the $170 million judgment debt.
Expressing dismay, Ablakwa highlighted missed opportunities, pointing out that the funds could have been utilized for emergency resettlement centers for Akosombo flood victims. He criticized the government for neglecting the welfare of Ghanaians due to what he termed a ‘reckless decision.’
Ablakwa emphasized that the termination of the contract was avoidable if the government had allowed it to run its course. He urged the government to appeal to reduce the hefty figure.
The dispute between Ghana and GPGC originated from the termination of the contract in 2018, resulting in GPGC seeking compensation through international arbitration. Despite Ghana’s attempts to challenge the award in a UK court, the judgment in favor of GPGC was affirmed due to missed deadlines.
This situation has drawn widespread criticism against the government for its decision-making process and handling of contractual agreements, leaving taxpayers to bear the consequences of the hefty judgment debt.
