Attorney-General and Minister of Justice, Godfred Yeboah Dame, has called for significant reforms to the laws governing arbitration and civil claims against the state.
While addressing the conference of public sector lawyers in Accra on November 5, 2024, he emphasized the importance of managing these issues effectively.
He warned that if arbitration claims against the government are not handled properly, they could pose a serious risk to the economy, potentially crippling it.
As such, Dame underscored the need for a comprehensive review of current regulations to ensure that they protect both Ghana’s interests and the integrity of the arbitration process.
“There are certain glaring dangers that I think arbitration portends for Ghana and the developing world which seem to be overlooked.
“Whilst arbitration is touted to assure neutrality, privacy, and efficiency in the adjudication of disputes, arbitral claims filed against the government, if not diligently managed, tend to collapse the entire Ghanaian economy”.
Godfred Yeboah Dame
Dame further asserted that even a single successful arbitral claim could have dire consequences for the economy of a developing nation like Ghana, potentially leading it to a state of crisis.
He highlighted that in the last four years alone, arbitral claims against Ghana have surpassed $9 billion, a staggering amount that underscores the urgency of addressing this issue.
Additionally, the Attorney General elaborated that the potential collapse of the country’s economy was narrowly avoided due to the diligent defense efforts put forth by his office.
These claims and the subsequent legal battles place immense pressure on the nation’s resources and financial stability, making reform of the arbitration framework imperative for safeguarding Ghana’s economic future.
Attorney-General’s Office Defends Over GHC10 Trillion
Furthermore, Godfred Dame proudly indicated that successful defense by his office averted a potential financial obligation of GHC10 trillion.
He emphasized the significance of this achievement, highlighting that the defense not only protected the state’s finances but also reinforced the importance of effective legal strategies in managing such claims.
Moreover, he underscored the need to mitigate the financial risks associated with these claims and ensure the economic stability of the country.
“I cite a few examples to illustrate the point: The financial claim by ENI/Vitol against Ghana was initially US$7Bn and subsequently reduced to US$915Million after a challenge in the course of the proceedings by Ghana.
“Any of these amounts (US$7Bn or US$915Million) could have collapsed the Ghanaian economy. By the Grace of God, this financial claim was recently dismissed in its entirety by the international arbitration tribunal”.
Godfred Yeboah Dame
He also highlighted several significant claims, noting that Cassius Mining Ltd’s claim against the Government of Ghana is valued at approximately US$300 million.
In addition, GCNet’s arbitral claim exceeds GHC4 billion, which is roughly equivalent to US$250 million.
Dame further pointed out that the recently filed Eland arbitration claim against the Government of Ghana involves a minimum claim of US$320 million, reflecting an arbitrary debt that Ghana has incurred.
These figures underscore the substantial financial pressure that such claims place on the government and the necessity for a robust legal framework to address these issues effectively. “These are just a sample of a few of the international arbitration claims against Ghana”.
Dame further noted that the Office of the Attorney-General has successfully defended domestic claims that exceed GHC10 trillion against the state.
This achievement reflects the office’s commitment to safeguarding the financial integrity of the government and highlights the effectiveness of its legal strategies in navigating complex legal challenges.
The substantial amount of these claims underscores the significant pressures faced by the state and the critical role that the Attorney-General’s office plays in protecting the nation’s economic interests.
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