Business News of Thursday, 14 December 2017
A group calling itself the Coalition for Social Justice has described as fraudulent claims by the Bulk Oil Storage and Transportation Company Limited (BOST), that it made a profit of about GHc35 million in its 2017 operations as a result of the ingenuity of its current Managing Director, Mr. Alfred Obeng.
The group described the claim as deceitful and a fabricated lie calculated to deceive Ghanaians about the real state of affairs at BOST which was recently in the news for the wrong reasons.
In a statement issued and signed by its convener, Sammy Gyamfi he said:” Evidence available in the records of BOST show that, in 2015 to 2016, BOST imported Crude to the tune of Eight(8) Million Barrels on open account (no cash down) for TOR to refine.
By the end of 2016, TOR had successfully refined 6million barrels of the crude, whilst 2million barrels were left in the TOR Storage Tanks. The 2million barrels of Crude that was left was bought at a price $45 per Barrel, accruing $90million in total for the 2million barrels of Crude which was left behind”
Read full statement of the group below;
“ANOTHER 419 FROM BOST: CLAIM OF GHc35 MILLION PROFIT IS A GREAT DECEPTION”!
Ghanaians woke up yesterday to several headlines to the effect that BOST has made a profit of GHc35 million in its 2017 operations as a result of the ingenuity of its MD, Mr. Alfred Obeng. We are totally astounded by the deceitful attempt of Mr. Alfred Obeng, a man noted for Selling Contaminated Products, to claim glory for no work done. The claim that BOST made a profit of GHc35 million in its operations this year is nothing but a fabricated lie calculated to deceive Ghanaians about the real state of affairs at BOST.
Evidence available in the records of BOST show that, in 2015 to 2016, BOST imported Crude to the tune of Eight(8) Million Barrels on open account (no cash down) for TOR to refine. By the end of 2016, TOR had successfully refined 6million barrels of the crude, whilst 2million barrels were left in the TOR Storage Tanks. The 2million barrels of Crude that was left was bought at a price $45 per Barrel, accruing $90million in total for the 2million barrels of Crude which was left behind.
However, since February 2017, TOR has been shut down and the refinery hasn’t been able to refine the remaining 2 million barrels of Crude which was left behind by the previous administration. Our checks have revealed that, all the Alfred Obeng-led BOST has succeeded in doing this year is that, it has sold 1 million barrels of the crude which was left behind by the previous administration at the current world market price of $62 per barrel, making a profit of $17 on every barrel of crude sold. In other words, the Alfred Obeng-led BOST has sold 1 million barrels of the crude which was bought at $45 million by the previous administration for $62 million dollars (cash), making a $17 million dollar profit, which is equivalent to GHc 80 million.
It is therefore deceptive, that the Alfred Obeng-led BOST will declare a profit of GHc35 million instead of GHc80 million. The question we would like to ask Mr. Alfred Obeng is, where is the remaining profit of GHc 45 million?
In line with the principles of probity, transparency and accountability, Mr. Alfred Obeng owes a sacred duty to the people of this country to account for the proceeds of this transaction, and we hereby demand that he does so within the next 72 hours.
As has been succinctly outlined, the evidence shows that the 1 million barrels of crude which has been sold by BOST this year was procured by the previous administration, and that Mr. Alfred Obeng has done absolutely nothing to merit the glory he is claiming.
Events In The Last 10 Months At BOST
Once again, our checks at BOST show that;
1. This year, BOST imported a total of Seven Cargos of Petrol and Diesel and made a net loss of $8million in June 2017 due to the crass incompetence of its MD, Alfred Obeng.
2. As a result of these debts, and the fast waning credit worthiness of BOST, BOST has not Imported a Single Drop of Petrol into the Country since June 2017. This has partly contributed to the continuous hikes in the price of petroleum products at the Pump as the Alfred Obeng-led BOST has failed to live up to its duties. Thus, the era of BDCs has returned and once again, Ghanaians have been left at the mercies of BDCs.
3. Due to the palpable incompetence of the management of BOST, the $1billion Suppliers Credit which Alfred Obeng Inherited at BOST has been run down to Zero. Due to this, the country has not had any Strategic Reserve of Petroleum Products since June this year. This is a very serious security issue because should there be any unanticipated emergency today, Ghana would be without fuel for the next 6 weeks and that will pose serious challenges for the citizenry and the country as a whole.
4. As at today, BOST tanks are dry and staff motivation is at an all-time low The Staff Quarterly Bonus and Profit Sharing system has been cancelled, whilst BOST in the last 3 months has had to borrow to pay the Salaries of its workers. Within this same period, BOST had to discount their receivables in order to pay for their administrative expense because of lack of activity.
5. All the Insurance in Europe that BOST had as of last year has been revoked by Suppliers because of the incompetence of Mr. Alfred Obeng and his management at BOST.
What Should Have Happened With The Crude Alfred Obeng Inherited
If BOST had refined the 1 million barrels of Crude at TOR, Ghana would have sold the refined products (Gasoline, Gasoil, ATK/Jet, Naphtha, LPG, Cracked Fuel Oil, HFO etc.) for a minimum of $71 million and we would have made a $28 million profit which would have kept domestic fuel prices below GH?20 per gallon. BOST would have made a Net Profit of at least $28million equivalent to GH?131 million from this transaction alone, had the right thing been done.
It is clear from the foregoing that all is not well at BOST. The incompetence of the current MD is crippling the affairs of BOST. We can say without a shred of doubt that Mr. Alfred Obeng is the most corrupt, inept and deficient MD that BOST has ever known, no wonder his mismanagement of BOST is worsening the livelihoods Ghanaians.
For instance, in December 2016, Ex-pump Prices which stood at GHc3.62 per liter, is GHc4.49 per liter today, and this is partly due to the fact that, the Country’s State Owned Strategic Asset is stranded with graft and incompetence.
We therefore wish to reiterate our call on His Excellency the President to sack Mr. Alfred Obeng immediately or risk the collapse of BOST in the soon to come future.