BOST accused of causing financial loss to state in sale of 1.8m barrels of crude

Business News of Monday, 12 March 2018

Source: Myjoyonline.com

2018-03-12

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The tussle between the Chamber of Petroleum Consumers (COPEC) and the Bulk Oil Storage and Transportation Company (BOST) has gone a notch higher with the former accusing BOST of causing financial loss to the state.

According to COPEC, Ghana lost in excess of 30m cedis in revenue from a transaction BOST had with an unlicensed company.

The losses, the Chamber insists, were recorded at every stage of the value chain from the sale of some 1.8 million barrels of crude oil, to fees for holding the rest of the crude.

The transaction which was undertaken in September last year comes only months after a major scandal involving the sale of some five million litres of contaminated fuel to 38 unlicensed companies.

The Executive Secretary of COPEC, Duncan Amoah, told Joy News he does not understand why 1.8 million barrels of oil was sold when the initial volume procured was 2 million barrels.

At a time when prices of crude were going up on the world market, BOST sold its product at a discount of 2 dollars, a transaction he found to be intriguing.

He cannot also confirm if the difference has been accounted for.

He also accused BOST of selling products to BB Energy, an unlicensed company.

“We do not think if it was his [BOST’s CEO, Alfred Obeng Boateng] personal company he would agree to undertake this kind of transaction,” he told Joy News’.

“There are losses across the chain which the office of the Special Prosecutor, must be interested in this one, EOCO must be interested in.

When he was asked who was behind BB Energy, Mr Amoah said there is a gentleman whose name he would not disclose but was quick to add that the company does not have tanks in Ghana to be engaged for in-tank transactions.

But In a sharp response, BOST described the allegations as unfortunate and misleading.

In a statement, BOST said it is the norm, globally to sell at a discounted rate, products which are deemed to be distressed.

Products are said to be in distress state when after 10 months of importation they are not used for the purposes for which they were imported.

“As we speak, BOST has offers for such distress cargoes at a discount of $4 per barrel. Any person competent in the industry would have asked for details before issuing this illogical and baseless statement,” BOST fired at COPEC.

BOST said it has followed the necessary procedures in transacting the business of oil in the country and charged the media to ignore the “baseless” accusation by COPEC.

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