Government effectively prevented Ghana from paying $9 billion in arbitral claims – Dame
Ghana’s Attorney General, Godfred Yeboah Dame, revealed that the country narrowly avoided a potential economic crisis by successfully defending against arbitration claims totaling almost $9 billion in the last four years.
If these claims had been accepted, they would have caused significant economic harm to Ghana. Speaking at the Public Sector Lawyers Conference in Accra on Tuesday, November 5, Mr. Dame highlighted several high-stakes arbitration cases, stressing the substantial financial strain Ghana would have experienced if the results had been unfavorable.
He pointed out that rejecting these claims was essential for maintaining Ghana’s economic stability. “If these claims had been accepted, our economy would have been thrown into chaos,” he stated, highlighting the crucial role of a strong legal defense in safeguarding the country’s financial well-being.
“Although arbitration is meant to ensure impartiality, confidentiality, and efficiency in settling disputes, arbitral claims brought against the government, if not effectively handled, can devastate the entire Ghanaian economy. A successful arbitral claim could potentially cripple the economy of a developing nation like Ghana.” In fact, in the last four years, the total value of arbitral claims against the Republic of Ghana has exceeded $9 billion.
“I will provide some examples to clarify this.” An example of this is the financial claim made by ENI Viton against Ghana. The claim was initially for $7 billion, but was later reduced to $915 million after Ghana challenged the proceedings in court. Indeed, any of these sums had the potential to devastate the economy of Ghana.
