The Managing Director of Bulk Oil Storage and Transportation Company (BOST), Edwin Provençal, has responded to what he described as ‘untruths’ being peddled by former President and Presidential Candidate of the opposition NDC Mr. John Dramani Mahama about the state of BOST and TOR before his administration exited power.
He expressed shock as to how the former Ghanaian leader, whom he says he respects so much, could spew untruths to Ghanaians.
The presidential candidate of the National Democratic Congress (NDC), John Dramani Mahama, has given the assurance that his next governement would revive the Tema Oil Refinery.
The NDC’s presidential candidate for the upcoming December 7 General Elections was interacting with members of the Tanker Drivers’ Association and liaison officers of the oil marketing companies in Tema on Thursday.
He said, “When the NDC assumed office, BOST was highly indebted but through proper management, the government was able to transform it to become one of the best performing state enterprises.”
Mr Mahama accused the Akufo-Addo-led administration of mismanaging BOST and TOR, assuring that should NDC return to power, it would work to revive the ailing state agencies.
However, responding to the claims by the former Ghanaian leader, Managing Director of BOST, Edwin Provencal gave a detailed account of the sordid state of BOST when the current administration took over the company.
He further gave details of what the current administration has been able to do within the three years and ten months.
Below is the full response of MD of BOST to Mr John Mahama’s claim
ADDRESSING FORMER PRESIDENT MAMAMA’S UNTRUTHS
As the current CHIEF SERVANT of BOST, I cannot stand aloof when the former 1st gentleman & commander-in-chief of the land, who I respect so much, decides to spew UNTRUTHS to the general public.
These are the unalienable facts:
BOST AS AT JANUARY 2017
1) As at January 2017, BOST had a backlog of unaudited accounts covering the period from 2014 to 2016. How can u declare profits during this period?
2) The Press encounter in 2015 which declared that BOST made profit on its operations by the then Managing Director was FALSE but a calculated attempt to throw dust into the eyes of stakeholders as revealed per the audited accounts which showed a loss of GHS36.342 million.
3) The 2016 audited accounts reflected a total loss of GHS459million from BOST operations. This was the HIGHEST LOSS EVER in the history of BOST.
4) In January 2017 BOST owed $624 million to suppliers, BDCs and related parties in respect of crude oil imports for processing at TOR and refined products which got lost from BOST tanks (documents available).
Can you imagine how many hospitals, schools & roads this $624million could have built?
5) Products not accounted for by BOST from BDCs between 2010 and 2014 amounting to $35.913 million hanged on the neck of the company from eight (8) BDCs.
6) As at January 2017, 15 out of 51 tanks owned by BOST across the country were non-operational, thus, decommissioned.
7) As at January 2017, The Tema-Akosombo-Product-Pipeline (TAPP) had been non-operational since 2013.
8) As at January 2017, the 77Km 12” pipes that BOST had previously acquired in 2008 for construction of a pipeline between Accra Plains and Akosombo Depots were still stuck in Houston and incurring huge additional costs AFTER 9 years.
9) In January 2017, 100% of our marine assets (all four BOST river barges, tug boat and floating dock) were broken down and non-operational, which limited transportation of petroleum products across the country. Our BOLGA-BUIPE pipeline & BOLGA DEPOT were not operational.
10) The CBM which was built on a Build-Operate-Transfer basis for BOST was transferred to TOR and subsequently leased to a South African Company under the single management for BOST and TOR. As we speak, BOST receives no revenue from this operation and TOR is only limited to dividends declared and paid by the South African Company.
11) The Tema Oil Refinery, TOR owed BOST to the tune of $13.3 million as at January 2017.
Fellow Ghanaians, PLEASE HOW CAN THIS BE EVIDENCE OF GOOD MANAGEMENT OF THESE NATIONAL ASSETS?
BOST FROM JANUARY 2017 to TODAY, 31st OCTOBER, 2020 UNDER THE LEADERSHIP OF HIS EXCELLENCY NANA ADDO-DANKWA AKUFO-ADDO.
1) The audited accounts for 2014 to 2018 has been completed with 2019 audited accounts expected to be completed by Q1-2021.
2) Whereas the 2018 account showed a 70% reduction in losses from the previous year, the 2019 management account further indicated a 41% reduction in the loss level from the year 2018. This steady decline in the loss level of the company, from 2017 to 2019, shows that during the year 2020, the company WILL LIKELY MAKE A PROFIT OR AT-WORST, BREAK EVEN.
3) With respect to the $36 million claim by eight (8) BDCs, an in-house committee vetted the figures and reviewed the volume of claims downwards to $15 million after diligent reconciliation with the claimant BDCs. This represents a potential savings of $21 million.
4) Of the $624 million owed to suppliers and related parties by BOST, 97% has been settled as at October 2020. This is huge progress at getting the company to work again. It must be noted that, some of these debts accrued out of losses on BOST/TOR crude import and refinery.
5) Of the US$566 Million, BOST paid US$408 Million from its own resources amounting to an average of US$136 Million per year. The amount paid from the companies internally generated resources amounts to 72.08% of the total amount settled out of the outstanding debts to suppliers and related parties as at 1/1/2017. Who will refer to this as a total mismanagement of a strategic state enterprise?
6) Government gave a support of US$138 Million through the Ghana National Petroleum Corporation, GNPC to help reduce the exposure of the company to the suppliers. This amounts to 24.4% of the amount paid.
7) Among other things, BOST has made a payment of $534,000 towards the rehabilitation of the Tema-Akosombo-Petroleum-Product-Pipeline. The work is expected to be completed in Q2-2021. The amount was raised from BOST’s in-house operations-storage and transmission of petroleum products.
8 ) In October 2019, two (2) of the four river barges which have been out of operations since 2013 were brought back on stream and are currently operational. These two barges generate GHS 400,000 per voyage between Akosombo and Buipe depots; an additional source of revenue to the company.
9) For the safety of the BOST depot in Buipe and the lives of people in the area, an amount of money was donated for the repair of the fire tender at the Buipe Station in January 2020. The repair works are over and the equipment is on standby to provide fire safety for the depot and the people in the area.
10) Repair works on the Bolga-Buipe petroleum Product Pipeline is complete and export of products is to commence in November 2020.
We are on the PATH TO TRUE TRANSFORMATION!
FELLOW GHANAIANS, the evidence is clear and Ghana IS working again under the leadership of HIS EXCELLENCY NANA ADDO-DANKWA AKUFO-ADDO.
#4MoreToDoMore4U