Ghana: BOST Blows Awuah Darko’s Cover …Says BOST Made Huge Losses In Three Years Under Him

The Bulk Oil Storage and Transportation Company Limited (BOST) has dismissed claims by Kwame Awuah Darko, a former Managing Director of the state owned entity under the erstwhile National Democratic Congress administration, that the company was profitable during his tenure.

According to the current Management, led by Edwin Provencal, the claims by the former MD are false and wondered why he chose to spew lies in the public space when evidence available contradicts his claims.

At a media interaction on Monday, November 9, Awuah Darko took on his predecessor, Edwin Provencal, for claiming that BOST accounts, covering 2014 and 2016, were not audited. He also disputed the fact that the company made profit under his tenure.

“I am sure they are making all these claims because of the current state of corruption at BOST and TOR. PricewaterCoopers, an audit firm contracted by the government to audit BOST, presented a report that stated that we made profit. Would the government say the firm did a bad job in its findings and report? If that is the case, then, they should call for their arrest. Why would the government deny a report that they paid huge amount to conduct?” Awuah Darko queried.

He added: “Looking at this report, one could clearly tell that all these claims are aimed at watering down the quality of progress TOR and BOST had made over the years, under my leadership. We made huge profit and that remains the fact. For a Managing Director, who is paid GH¢100,000.00 per month from BOST in salary and allowances, you should be able to at least recognise.”

However, a statement signed by Corporate Communications Manager of BOST, Marlick Adjei, in response to Awuah Darko’s claim, gave a detailed explanation of the mess Mr. Darko created before leaving BOST.

Although, the statement acknowledged the fact that BOST made some profit under the National Democratic Congress administration, it was rather in the year 2012 when Dr. Yaw Akoto was the MD.

According to the statement, BOST made losses in three consistent years under the leadership of Kwame Awuah Darko.
The statement noted that a report prepared by PricewaterhouseCoopers in 2015 and 2016 showed that BOST made GHS36,341,669 and GHS458,638,724 in 2015 and 2016 respectively.

Meanwhile, the 2014 audit report, which was prepared by Tema-based Opoku, Andoh and Co., also showed that BOST made a loss of GHS89, 365,054.

The statement revealed that Conveniio Energy, a company owned by Kwame Awuah Darko, lifted products worth GHS2.3 million from BOST during his tenure and till date, the money has not been paid.

‘‘Due to lack of proper structure and adherence to procedure in the sale of products on credit to dealers, a chunk of the receivables, including that of his company, have not been paid BOST yet. We have proceeded to engage private debt collection firms in this enterprise and we are hopeful of retrieving all those monies owed BOST including that of the company he leads as CEO, Convenio Energy,’’ the statement said.

On his leadership of BOST and TOR at the same time, the statement said the two companies had separate board of directors and Mr. Darko had no deputies in this enterprise and, therefore, run a one man show.

‘‘In the final analysis, BOST, under his watch, was made to pay US$5.50 per barrel in tolling fees to TOR while the same TOR is today charging a tolling fee of US$2 per barrel in refining products for private businesses. Despite the high charges, Mr Awuah Darko ensured that TOR over-paid US$5.2 million as captured in the BOST and TOR debt validation carried out by Deloitte in November 2018.

‘‘A total of US$10 million, which Sahara Oil should have paid to BOST in respect of products sold to the NNPC of Nigeria, was also retained by Sahara in settlement of TOR debts because the two companies were mistakenly bundled
together and handed to one man to be sent to the slaughter house.

‘‘We maintain that his stewardship left BOST with a total debt of US$624 million to suppliers and related parties and a total debt of GHS273 million, which was owed to banks in the country including GCB, Standard Chartered and Universal Merchant Bank,’’ the statement concluded.

Below are portions of the Audited Accounts of BOST

Source:www.energynewsafrica.com