The Chamber of Petroleum Consumers (COPEC), Ghana has called on the government to immediately halt and investigate the processes leading to what it describes as wanton dissipation of monies at the Ghana National Petroleum Corporation (GNPC).
Also, the Chamber wants the government “to further take immediate action and sanctions against the Management and the Board of Directors of GNPC.”
In a press release Tuesday signed by its Executive Secretary, Duncan Amoah, COPEC called for further steps taken “to consolidate all resources being held in trust by the corporation to forestall any further wanton dissipation of same as has been the case over the years with GNPC.”
Below is the letter:
Government must halt and investigate the Board and Management of GNPC on the utilization of generated oil revenue
The poor Ghanaian taxpayer is once again confronted with another clear case of wanton dissipation of the scarce the nations resources by highly placed persons within the Ghana National Petroleum Corporation (GNPC) which sharply contrasts Government’s earlier reason for increasing fuel taxes as it insisted we needed revenue yet some in same breath squandering the little available without any solid justification.
Chamber of Petroleum Consumers Ghana (COPEC-GH) has taken notice of
an internal Memorandum dated 29th October 2019 from the Board Secretary
under the Signature of one Matilda Ohene to the Chief Executive of the
Ghana National Petroleum (GNPC) on the subject titled “Board Approval
for payment of various sponsorship /Support Requests”.
The said memo indicates the granting of approvals to some supposed
requests received with some stated amounts as indicated below:
2019 Damba Festival Preparation- Dagbon State- GHS400,000.00
20th Anniversary of Okyenhene – GHS500,000.00 over three years totalling (GHS1,500,000.00) for the environment and greening.
II: GHS300,000.00 for organisation of 20th Anniversary celebrations of Okyenhene
Ghana Journalists Association – GHS50,000.00
Ghana Boxing Association – US$30,000.00
Rebecca Foundation – GHS120,000.00
EOCO – GHS550,000.00
Our initial reaction was that of disbelief but the said memo has been
confirmed by the manager for the sustainability of the GNPC with a
justification that these are quite normal application of the scarce
resources been held in trust for Ghanaians by the corporation.
To this, we call on the Government to immediately halt, and
investigate the processes leading to wanton dissipation of these monies
as contained in the memo, and to further take immediate action and
sanctions against the Management and the Board of Directors of GNPC and
to further take steps to consolidate all resources being held in trust
by the corporation to forestall any further wanton dissipation of same
as has been the case over the years with GNPC.
This abuse of resources being held in trust by these corporations at a
time the Central Government seems to be in dire need of revenues for
its developmental projects cannot be overemphasized and will need to be
halted immediately to restore the needed confidence by the poor taxpayer
who is squeezed every now and then to generate these revenues the
government needs.
The priorities of GNPC should be going forward clearly defined by
legislation as the Corporation seems to be gaining notoriety for such
acts which usually contravenes the posture of the State and Central
Government within the economic context prevailing in Ghana.
For the avoidance of doubt we also seek clarity on the following:
Does the Act and laws governing the operations of GNPC permit GNPC to on
its own now finance and compromise other state investigate bodies such
as EOCO who are expected to hold persons at the top of such corporations
to account in the event of abuse of resources?
These state investigative Agencies such as EOCO who currently are
expected to be investigating the board chairman of the very same GNPC
and all other potential corrupt practices in such public corporations
also enjoys government budgetary allocation and funding and as such
could attract private support but another huge state funding by GNPC
leaves a lot to be desired and confusion in the minds of right-thinking
society especially at the time EOCO is expected to investigate some
highly placed officials of the said corporation.
Further, does such funding provision for Chieftaincy affairs in the
country not constitute a pick and choose agenda which can lead to
needless tensions and suspicions knowing very well how delicate the
institution of chieftaincy is to ethnic and social matters as already,
the chiefs and people of the Western Region of Ghana, where a larger
chunk of our oil resources are extracted from are on record to have
demanded a percentage share of the oil find but have till date not been
given any, neither their roads fixed nor infrastructure improved by the
oil money yet GNPC in an apparent show of some perceived biases is
sponsoring other traditional areas in Northen and Eastern Regions of the
Country by way of festivals and to also go green?
Will GNPC be in a position to grant all the traditional authorities
same or similar funding upon request? if no, what justification will
they provide for declining in the event all other traditional
authorities now decide to seek their share of the oil cake?
Dispensing such amounts to individuals and private organizations will
surely have a certain effect on the economy and central government
funding as these monies could have been easily channelled to other very
important needs such social amenities provision in deprived communities
to ease the pressures on the central government.
The absence of funding to undertake these development projects often
force the central government to now resort to imposing heavier taxes
which has often lead to increases in fuel prices at the pumps in the
petroleum industry.
We believe that the public funds in the care of GNPC should be
prudently invested and managed in building a robust upstream petroleum
sector such that GNPC can in the very near future hold and maintain some
of our oil wells without any foreign oil company taking a larger chunk
of the shares of our own resources. And to complement in defraying
incessant debts in the energy sector and ultimately relieve ordinary
Ghanaians off these huge tax burdens as prevailing today.
We lastly note with deep concerns, that, this rather headless
financial decision by the Board of GNPC to among other things, pay funds
to EOCO which already enjoys government budgetary allocation could
potentially compromise the investigative responsibilities of the state
institution and further open the floodgates for all other traditional
authorities within the country to also seek their share of the oil money
and must be halted immediately forthwith.
Signed.
Duncan Amoah
Executive Secretary
