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Gov't defends Tsatsu Tsikata’s role in US$19.5m judgment debt paid to Societe Generale
From: Ghana | Myjoyonline.com | Joy News          Published On: September 14, 2013, 16:41 GMT
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Gov't defends Tsatsu Tsikata’s role in US$19.5m judgment debt paid to Societe Generale

Tsatsu Tsikata, former Chief Executive Officer of GNPC

The Government has said the former Chief Executive Officer of the Ghana National Petroleum Corporation (GNPC), Tsatsu Tsikata cannot be faulted for the judgment debt incurred in the country’s hedging transaction with French multinational bank, Societe Generale.

The bank in 1999 sued GNPC in a London court to recover monies owed it by GNPC in the transaction.

A GNPC Drill Ship was subsequently sold to defray the 19.5 million dollar debt incurred as result.

Former Deputy Energy Minister, K. T. Hammond has blamed Mr. Tsikata for this whilst Editor in chief of the New Crusading Guide, Kweku Baako has also criticized the transaction.

But speaking on Joy FM and Joy New TV news analysis programme, News File, Minister for Information and Media Relations Mahama Ayariga says Tsatsu did nothing wrong.

According to him, "It is a normal feature in the industry that you will engage in hedging and derivatives in this case Tsatsu was approached by Societe Generale offering services to assist raise funds in anticipation that there will be discoveries and then we will pay off."

He said Tsatsu Tsikata admitted "he was not an expert in the matter that Societe Generale presented themselves to GNPC as experts in that area and they will be providing GNPC with advise and technical support. There was agreement that as part of this process there will be capacity building for GNPC in the area of derivatives and et cetera."

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