..As ICC’s Arbitral Tribunal rules in favour of Ghana
Story: Mohammed Abu
Ghana’s Finance Minister, Dr. Cassil Ato Forson, says that, the arbitral tribunal of the Rules of the Arbitration of the International Chamber of Commerce rule yesterday in favour of the country in the Tullow Tax Arbitration case, notwithstanding, the company remains a vital partner and it is the country’s largest petroleum producer.
Its operations in the Jubilee and Ten Fields. Forson notes, support Ghana’s energy security, domestic gas supply and thousands of Ghanaian livelihoods. It is in the national interest that the relations endure.
The government he disclosed, will therefore closely work with Tullow to give effect to the award in accordance with Ghanaian law. “In doing so, the government will have regard to the continuity of operations in the Jubilee Field and Ten Field and Tullow’s capacity to sustain the investments required in those fields”
Ghana’s laws Dr. Forson notes, provide the Ghana Revenue Authority with the means to determine the time and manner in which assessed liabilities are met. “The government intends to ensure that the award is implemented in a way that secures the revenues due to the Ghanaian people while preserving Tullow’s ability to continue operating and investing in the Ghana as GOING CONCERN”.
These were contained in an official statement issued and signed by the Minister, in Accra, Wednesday.
The Tribunal, the statement disclosed, dismissed all the claims brought by Tullow and upheld in full the Ghana Revenue Authority’s assessment of US$393,091,993.70
The Tribunal it said, found out that the assessment did not breach the Petroleum Agreements, penalty was properly applied, the assessment was not time-barred and the Ghana Revenue Authority’s enforcement action was lawful
“I acknowledge the work of the office of the Attorney General, the Ghana Revenue Authority, and Ghana’s External Legal Counsel, Folley Hoag LLP in defending the interest of the Republic.
“This outcome vindicates the position Ghana has maintained throughout: that every company operating in the country, regardless of its size is subject to the laws of Ghana.
“Government notes that this award has come at a critical time when Ghana and the Jubilee Partners are working to maximize the prospects of the Jubilee and Ten Fields.
“Government prior to the award was discussing with Tullow to resolve amicably the withstanding tax matters between the two parties”.
These discussions,Dr.Forsen assured, “will continue covering both the matter determined by the Tribunal and the separate proceedings concerning the disallowance of loan interest”, adding “The discussions are on-going and would be resolved in the mutual interest of both parties”.
