Former Chief Justice Sophia Akuffo has questioned the logic behind ratifying extended oil agreements years before existing contracts expire, warning that Ghana risks locking itself into rigid and costly arrangements.
Speaking on Joy News’ PM Express Business Edition on Thursday, she said she does not understand why agreements with years left to run are extended in advance.
“I still don’t understand why I read I think that there’s some extended oil agreement still has some years to go. I think if there are still 10 years or more to go, we can extend it for another period, which will start not from tomorrow but from the end of the previous agreement. We should stop doing that, and it should not even be ratified by Parliament.”
When host George Wiafe asked whether agreements already extended should be reviewed, she challenged the national mindset around contracts.
“I don’t know why we always think agreements are written, you know, we in Ghana believe it is as though the agreement is cast, not even in stone, but in diamond and blood, so you cannot touch.”
She stressed the need for built-in review clauses in future agreements.
And in any case, if these are the agreements we’ve been signing, we had better make sure that in all coming agreements there will be review clauses.”
According to Sophia Akuffo, Ghana often leaves loopholes that favour the other party while binding itself too tightly.
“We always leave an opening to the party of the other side, and then we lock ourselves into a lockstep move as a nation, and then you cough, and they take you to court in their country.”
She also raised concerns about arbitration venues.
“That’s the other thing where arbitrations and all those things are done in their country, and we are always losing practically.”
Referencing recent disputes, she expressed frustration over the handling of the arbitration involving Tullow.
“I don’t pretend to know who represented us in the recent Tullow arbitrations… but whoever did, did us a great disservice, and we end up having this and that thrown at us, you have to pay this and that.” Her concern deepened over what she described as a contradiction. “And then on top of all that, we extend the contract. I don’t understand.”
As a former judge and lawyer, she acknowledged the legal limits once an agreement is signed.
“I cannot say go and renegotiate an agreement if in the document you have not given yourself the right or the power of renegotiation under specified circumstances, but going forward, there should be.”
Sophia Akuffo pointed to the Atlantic Lithium agreement as an example of how terms can be structured differently.
“Like if you take the Atlantic Lithium agreement rather than topping up, you topside it. In other words, no matter how high it [the price] goes, this is the scale with the royalty. That’s what I’m talking about.”
Her warning was firm. “We cannot lock and must never lock ourselves into those ways.”
Source : Myjoyonline.com
