Kudos TOR, let’s keep the momentum
For the first time in seven years, the Tema Oil Refinery (TOR) has been able to post profit from its operations, totalling $800,000 from February 16 to April 20, 2016.
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This is, indeed, welcome news, especially coming at a time when most para-statals and state-owned enterprises (SOEs) are facing operational challenges.
Obviously, the magic wand that made this possible was the very fruitful collaboration among four major stakeholders – labour (the workers), management, the government, and the Bulk Oil Storage and Transport (BOST) Company.
Not too long ago, allegations were rife that the government had put TOR up for sale because the refinery was not doing well, coupled with the huge debts that were strangulating it.
There were also several workers’, as well as public agitations against the alleged sale to a private company.
That must all belong to the past, now that there has been a turnaround for the refinery.
But while we commend the staff, management, the government and BOST for pulling off this feat, we also urge that they do not rest on their laurels, as this is just the beginning of great things to come if only they remain focused and dedicated.
Indeed, as a result of the deal with BOST, the refinery is expected to make an additional profit of $1.5 million after the second consignment of a million barrels of crude oil is processed from May to August 2016.
The Daily Graphic believes that TOR’s story only goes to confirm the fact that with good and innovative management, a determined and sacrificing staff, less government interference and the right policies, state agencies that have become unprofitable will experience a rebound.
Apart from the fact that a number of state agencies are shrinking in size, those that remain are hanging solely on irregular and insufficient government subventions and are now near dead.
We believe that TOR could be a reference point for all struggling SOEs) on how to come out of the doldrums and become profitable entities.
We are not in any way suggesting that it is all well with TOR. We know that there are still debts to clear, such as crude oil obligations to four banks, for which the refinery’s management is in talks with the banks to convert the debts into a 10-year GH¢1 billion bond.
There is also the need for the injection of more capital to make the refinery even more profitable and also meet international standards to attract high-calibre staff.
The Daily Graphic doffs its hat for the workers who were willing to sacrifice their salaries in October last year when the going got tough.
We also commend the management for coming up with a profit-sharing pool to allocate 10 per cent of profits to be shared among all workers for the sacrifices they had made to resuscitate the refinery.
Clearly, it was the harmonious relationship between management and staff that won the day for TOR and we urge that such camaraderie is maintained to sustain and improve on the gains made by the refinery.
We also urge the workers to ensure that no anti-social activities are condoned now that a silver lining has appeared on the horizon at TOR. Many SOEs have collapsed because the workers saw the enterprises as belonging to the government and there was no feeling of ownership among workers.
The Daily Graphic, therefore, calls on workers of other SOEs to emulate the sacrifices made by their counterparts at TOR to put those organisations back on winning ways.