PIAC findings misleading – Ghana Gas

The Ghana National Gas Company has denied reports it has misappropriated some 47 million dollars revenue from gas sales.

This is in response to a report by the Public Interest and Accountability Committee (PIAC) that funds cannot be accounted for.

PIAC last week called on the Ministries of Finance and Energy to urgently convince the Volta River Authority to settle its indebtedness to the Ghana National Gas Company.

It said this was in order to prevent the VRA’s debts to Ghana Gas from spiraling to unmanageable proportions and thus compromising the viability of the Ghana Gas Company.

But the National Gas Company in a statement signed by Corporate Communications Manager, Ernest Owusu-Bempah Bonsu described the reports as misleading.

Read the full statement below:

Dated: Monday, 19th June, 2017

GHANA NATIONAL GAS COMPANY REACTS TO MISCONCEPTION ON PIAC REPORT 

Ghana National Gas Company (Ghana Gas) has taken note of various media reports on the Public Interest & Accountability Committee (PIAC) allegations that, the Company cannot account for $47.4million being revenue from sales of raw gas to Ghana National Petroleum Company (GNPC). The Company wishes to state that the story is untrue and misleading.

It is also incorrect that, the Volta River Authority (VRA) owes Ghana Gas an amount of $434million. Ghana Gas like any other entity acknowledges that it owes some of its partners in the energy sector, but the figures being churned out are inaccurate.

Ghana National Gas Company also wishes to state that there is a cyclical debt challenge within the energy sector and the Company is the most owed. To set the record straight, as at 31. May this year, VRA was indebted to Ghana Gas to the tune of $534.2million. Ghana Gas on its part owes GNPC an amount of $162.5million as at 31. May this year.

VRA complaints that its inability to settle its debt to Ghana Gas is as a result of Electricity Company’s failure to pay huge debts owed VRA, whiles ECG blames its failure to settle debts to VRA on its consumers. However, we wish to state that the government is working assiduously to resolve these cyclical debt issues to make the sector more financially solvent. As a way of resolving these debt issues, the government is creating a holding fund for all receivables in the power generation sector.

This more is expected to create a cash waterfall to cater for the needs of all the stakeholders in the energy industry. Ghana Gas wishes to indicate that, it is collaborating with its partners and stakeholders in the sector to create a harmonious working relationship that has the potential to resolve challenges confronting the sector.

SIGNED
ERNEST KOFI OWUSU-BEMPAH BONSU
Corporate Communications Manager,
(Ghana Gas)

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