Parliament suspends approval of GNPC’s 2016 programmes

Mohammed Ali May - 29 - 2016 , 11:51

A heated debate in Parliament on the Ghana National Petroleum Corporation (GNPC) last Thursday led to the suspension of the approval of its 2016 programme of activities.

According to the Mines and Energy Committee’s report on the GNPC’s programme of activities for this year, the company planned, as part of its capital projects, to use $100 million as guarantee for the Karpower Ship, which has been contracted by the Electricity Company of Ghana (ECG).

The guarantee means that the funds, when committed to the project, reduces the fiscal balance of the corporation.

The corporation also intends to construct a headquarters and complete 50 per cent of the work on its beach road property, among other projects.

K.T. Hammond's views

The Member of Parliament (MP) for Adansi Asokwa, Mr K.T. Hammond, however, drew the attention of the House to what he termed the mismanagement of the corporation’s financial resources.

He said, for example, that it was agreed that the corporation should spend GH¢40 million on the construction of its headquarters building but the GNPC had come back to ask for GH¢ 70 million.

He questioned the need for the GNPC to guarantee the ECG’s transactions when the GNPC was not a bank.

Mr Hammond also questioned the propriety of the GNPC’s decision to loan $58 million to the Tema Oil Refinery (TOR).

According to Mr Hammond, almost half of what accrues to Ghana from the sale of oil went to the GNPC but the company was mismanaging that resource.

"The last time, they were trying to establish a university. Currently, I hear they are trying to establish a bank. GNPC must be rien in. They are not focused. They do not have presence of mind in expending money. They are wasting the nation's resources," he stated.

He, however, urged the House to approve the corporation’s programme of activities but added that members needed to keep an eye on its operations.

Akoto Osei protests

But the Member for Old Tafo, Dr Anthony Akoto Osei, who is also a ranking member on the Finance Committee, said from all that Mr Hammond had said, it was evident that the GNPC was mismanaging its resources and engaging in activities outside its mandate.

He wondered why Mr Hammond would catalogue all those wrongdoings by the GNPC and turn around to urge the House to approve the programme.

"It would be unconscionable if all these allegations are true and then we go ahead and approve their programme. Is this what Parliament wants to do? he asked.

He made reference to the recent chiding of the Parliamentary Select Committee on Roads and Transport by the Speaker, Mr Edward Doe Adjaho, for lack of adequate oversight and said Parliament needed to take its duties seriously.

“We say we are masters of our own procedures. If GNPC is not acting as expected, why should we approve their programme?

“They are saying we should approve it. I am saying we should not. Members should look at the report carefully. Let us step it down, call the Minister of Petroleum to give us answers and if we are satisfied, we approve it, but certainly not now," he said.

Muntaka and Owusu-Ankomah concur

The Majority Chief Whip, Alhaji Mohammed Muntaka Mubarak, agreed with the suggestion that the approval be deferred until the Minister of Petroleum and the "technical people" responded to some of the issues raised.

The Member for Sekondi, Papa Owusu-Ankomah, also agreed with the suggestion.

Speaker defers matter

The First Deputy Speaker, Mr Ebo Barton-Odro, who presided over proceedings, deferred the approval until the Minister of Petroleum, Mr Emmanuel Armah-Kofi Buah, would brief the House.

He also ordered that copies of the Hansard which contained the sentiments and views expressed be made available to the Petroleum Ministry.