Ken Ofori-Atta
GOVERNMENT
PAID $300 million of outstanding legacy debt to Bulk Oil Distribution Companies
(BDCs) between 2017 and June 2019.
A total
of $49.77 million outstanding debt is expected to be paid by end of 2019.
These
were contained in the 2018 Industry Report of the Chamber of Bulk Oil
Distributors (CBOD).
This
brings to $930 million subsidies incurred by government through its subsidy
policy from 2012 to date.
The
outstanding claims at the end of 2018 comprised Real Value Factor (RVF) and
Forex Loss Under Recoveries Interest (FLURI) claims.
Real
Value Factor refers to the financial cost (interest) incurred by BDCs for the delayed
payments of price under recoveries.
Forex
Loss Under Recoveries Interest on the other hand, refers to the financial cost
borne by BDCs for the delayed payment of Forex Loss Under Recovery (FLUR) by
government.
According
to the report, Legacy Bonds Limited, an assignee of the BDC claims, negotiated
and finalised the parameters/terms for establishing the FLURI and RVF claims
with government.
It said
in June 2019, government through the Ministry of Finance (MoF) issued a 10-year
ESLA bond of GH¢648.93mn to fully settle the validated RVF claims and partially
settle the FLURI claims.
The ESLA
account at the end of 2018 recorded a closing balance of GH¢615.42 million.
ESLA
Plc had issued bonds with a face value of GH¢5.6
billion (GH¢5,664.72 million) as of December 2018, as part of the government’s
plan to refinance Energy Sector debts.
The
issuance of the bonds resulted in the reduction of State-Owned Enterprise (SOE)
debts to its creditors by approximately GH¢5.4
billion (GH¢5,453.20 million) as of end 2018.
Total
transfers from the ESLA accounts towards the servicing of the ESLA bonds
amounted to GH¢1.3 billion (GH¢1,353.71 million).
The
2018 Annual Report on the Management of the Energy Sector Levies and Accounts,
indicates that for 2019, a total of GH¢3,947.82
million has been targeted for collection under the Energy Sector Levy Act,
(ESLA). –
–Citifmonline
