The Attorney-General and Minister of Justice, Godfred Yeboah Dame, has called for urgent reforms to Ghana’s arbitration laws and civil claims processes to shield the country’s economy from crippling arbitral claims.
Speaking at the Public Sector Lawyers Conference in Accra, he cautioned that unchecked arbitration claims could collapse Ghana’s economy, citing an alarming $9 billion in claims filed against the state over the past four years.
“There are glaring dangers that arbitration presents for Ghana and the developing world, often overlooked.
While arbitration promises neutrality, privacy, and efficiency in dispute resolution, these claims, if not rigorously managed, could bring Ghana’s economy to its knees,” he warned, addressing an audience that included President Nana Akufo-Addo and public sector lawyers.
In a critical disclosure, Mr. Dame highlighted several high-stakes cases his office had defended to avoid economic catastrophe.
Among these, an arbitration claim by ENI and Vitol initially sought $7 billion, which could have devastated Ghana’s economy.
After Ghana’s successful legal challenges, this claim was reduced to $915 million and ultimately dismissed entirely.
Other claims include a $300 million claim by Cassius Mining Ltd, a GHC4 billion ($250 million) claim by GCNet, and a recent $320 million claim by Eland. Domestically, his office successfully defended claims exceeding GHC10 trillion.
“These claims have been dismissed, safeguarding our economy,” Mr. Dame remarked.
“Without diligent defense, any one of these could have devastated our finances.”
In recent years, Ghana has faced arbitration disputes involving global entities such as the International Finance Corporation (IFC), Aker Energy, and Kosmos Energy, underscoring the need for legal reform and stricter contract management.
“We must reform the laws governing arbitration and civil claims against the state while re-evaluating our contracting practices on behalf of the government,” Mr. Dame urged, stressing that such reforms are essential to preventing similar claims in the future.
Expanding the Attorney-General’s Office
The Attorney-General further underscored the critical need for a significant expansion in the number of state attorneys.
He noted that while the Office of the Attorney General currently operates with just 370 attorneys, an estimated 1,500 are needed to effectively address the state’s legal demands under Article 88 of Ghana’s constitution.
“There is an urgent need to bolster the Attorney General’s Office to meet the complexities of modern state legal needs.
Every Ministry, Department, Agency, and District Assembly across the country should be served by at least one state attorney,” he emphasized.
“The current practice of MMDAs hiring their own lawyers leads to inefficiencies and lacks cohesion in the public legal service.”
To address these challenges, Mr. Dame proposed centralizing all legal roles under the Attorney General’s Office, creating a unified and efficient system for government legal work.
He also expressed gratitude to President Akufo-Addo for his dedication to improving the work environment for state attorneys, particularly highlighting the recent completion of Law House, a 12-storey headquarters for the Attorney General’s Office, commissioned in June 2024.
“This new Law House is a powerful symbol of the president’s commitment to enhancing the working conditions of state attorneys,” Mr. Dame said, commending the administration’s support.
He also pledged that under the next NPP administration, each regional Ministry of Justice office would have its own dedicated building.
Through these reforms and expansions, Mr. Dame envisions a cohesive public legal service, better equipped to protect the state’s legal and economic interests in a complex global landscape.
