Probe BOST from 2009 – Majority in Parliament

The Majority in Parliament has urged the government to institute a probe or forensic audit into the activities of the Bulk Oil Storage and Transportation Limited (BOST) from 2009.

It said the probe - to be conducted by a high-powered committee - was needed to expose all the improprieties committed at the BOST over the period, including the contamination of fuel, to provide the basis for addressing the wrongs holistically.

The Majority, however, denied allegations by the Minority that the recent contamination of the five million litres of fuel at BOST happened during the tenure of the current Managing Director, Mr Alfred Obeng Boateng, and refuted the claim that that the contaminated fuel was sold at GH¢1 per litre to Movenpiina.

It also rejected the suggestion that the contaminated fuel was in circulation and also indicated that the Company's Act allowed for the transaction with an unregistered company, contrary to the position of the Minority.

Speaking at a press conference in Accra Friday, the acting Chairman of the Energy Committee of Parliament, Mr Emmanuel Akwasi Gyamfi, said "The events playing out at BOST requires engagement and interrogation."

The Minority in Parliament last week held a press conference and accused the MD, Mr Obeng Boateng, of causing a financial loss of GHc14.25 loss to the state through the contamination of five million liters of petrol and the subsequent sale of the product to a private company.

It has, therefore, called for the interdiction of Mr Obeng Boateng and a full scale investigation into the deal.

The Minister of Energy, Mr Boakye Agyarko, has already formed a committee to investigate the the whole issue.

Probe needed

Mr Gyamfi said it did appear that there had been a lot of rot at BOST, which required full scale investigations.

"We agree that we require a high-powered committee to investigate these and other related improprieties, determine the extent to which these affect and have affected the economy and efficiency of BOST and whether their operations are being managed in accordance with sound business principles and prudent commercial practices", he said.

Reactions

Mr Gyamfi said the claim by the Minority that BOST sold the contaminated fuel to Movenpiinaa at GH¢1.30 which in turn sold it to ZUPP Oil at a 30 per cent higher cost was false.

Rather, he said, Movenpiinaa bought the contaminated product at GH¢1.30 and then sold to ZUPP Oil at a price of GH¢1.32 and thus made a marginal profit of GH¢100,000.

The legislator said between 2014 and 2016 when the contamination of fuel products escalated, the average price that the product sold for was GH¢0.70 (70 pesewas) per litre, as the price ranged from GH¢0.50 to GH¢0.90.

"The sale price of the recent contaminated product at GH¢1.30 which is 86 per cent higher than what obtained in the past is the highest value the nation has ever earned", he said.

Mr Gyamfi accused the Minority of creating an erroneous impression about the total proceeds from the sale of the contaminated product.

He said BOST sold its good-specification at a price of GH¢1.75 per litre; the off-spec in question sold at GHS1.30 per litre.

Therefore, he said, the five million litres contaminated product would have ordinarily sold at GH¢8,750,000.00.

"In the face of the contamination, the sale of the product at GH¢1.30 per litre yielded GH¢6,500,000.00 which represents a shortfall of GH¢2,250,000.00 and not the conjured figure of GHS14.25 million", he said.

Mr Gyamfi said the allegation by the Minority that Movenpiinaa was chosen to purchase the contaminated price on May 19, 2017 when the company had not been registered as a limited liability company and allegation that the company only got to be registered on May 29, 2017, ten (10) days after the offer to same company to buy the five million litres when it had no licence from the National Petroleum Authority (NPA) to engage in that business needed to be investigated.

"One would want to believe though that Dr Kwabena Donkor and Armah Kofi Buah are aware that the Companies Act under Section 13 allows for a contract or any transaction entered into by a company prior to its formation or by a person on behalf of the company prior to its formation", he said.

The NDC has alleged in their press statement that “under no circumstance should BOST experience such high level of contamination as we are witnessing”. The truth of the matter, without justifying the recent event though, is that in 2014 under the NDC a similar contamination occurred, the quantity involved was 4.6million litres; in 2015, still under NDC, another contamination occurred, the quantity involved was 9.9million litres; 2016 witnessed the mother of all contaminations, the quantity involved amounted to 12million litres.

Mr Gyamfi refuted the Minority's claim that the contamination happened due to the inefficiencies and negligence of Mr. Alfred Obeng.

"As has emerged now, the five million litres contaminated was detected on January 18, 2017, exactly 11 days after the swearing in of President Nana Addo Dankwa Akufo Addo. Alfred Obeng Boateng had not at that time assumed office to take over, and Mr Awuah Darko was still, effectively, the CEO", he said.

He said BOST management investigation established that, that occurrence was attributed to human error, and indicated that four staff who were in charge of operations at the time were interdicted before Alfred Obeng was posted there.

Infractions

Mr Gyamfi said under the former MD of BOST, BOST Mr Kwame Awuah Darko, the company rented a property House No.11Nortei Ababio St., Airport residential area.

He said more than two years after BOST had vacated the premises they kept the keys and kept paying the rent for non-use of the facility, and indicated that in the event BOST paid $310,000 in June 2016 from tax-payers money.

Mr Gyamfi said there were several commitments that BOST made in 2016, especially between July 2016 and January 7, 2017, which must be investigated.

"Since 2015 BOST under the guise of Security Transfer has transferred unexplained colossal amounts of between GH¢2.5 to GH¢3.5 million on bi-monthly basis to the Office of the then President and the then Chief of Staff, the last amount being GH¢3 million which was transferred on January 3, 2017.

The Majority Leader, Mr Osei Kyei-Mensah-Bonsu, wanted the investigation for Ghanaians to be clear as to what needed to be done to save the nation from losing money.

He said the Majority wanted best for the country and that it would not shirk its responsibility.