Ghana: Ghana Gas, Others Fail To Pay $3.4b Penalties Into Petroleum Holding Fund

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Dr. Benjamin Asante, CEO of Ghana Gas

Ghana’s Auditor-General, Daniel Yao Domelevo, has reportedly discovered that about $3.4b penalties which is supposed to have been paid to the Petroleum Holding Fund has not been paid

According myjoyonline.com, about $220 million of the petroleum funds is said to be outstanding since December 2017,

Of the total amount, $219 million represents amounts due from the Ghana National Gas Company Limited for gas sold to them by the Ghana National Petroleum Corporation (GNPC).

There was an additional US$1 million surface rental fees unpaid by various entities.

The estimated amount of penalties based for such delayed or nonpayment amounted to $3.4 billion. 

The Auditor-General in the West Africa nation observed that there is a loss of income which would have been earned if the funds had been paid on time and invested.

The report noted that Auditor General recommended that monies due to the Petroleum Funds should be promptly collected. Any late payments should attract interest as stipulated by law.

Management in its response said that the Ghana National Gas Company Limited failed to pay the amount owed Ghana National Petroleum Corporation because the Volta River Authority (VRA) had defaulted in paying Ghana National Gas Company for gas supplied to them for the running of the thermal plants.

It said regarding the unpaid surface rental fees, Ghana Revenue Authority has been informed of the situation and Bank of Ghana was awaiting its response.