The Akufo-Addo administration in the Republic of Ghana has challenged claims by the largest opposition party, NDC that it managed the West African nation’s strategic oil company, BOST, better and more efficiently than what the current administration is doing.
The opposition NDC at a press conference addressed by its National Communication Officer, Sammy Gyamfi said it is worthy of note that under the leadership of the visionary John Dramani Mahama, BOST was so efficiently managed such that, for the first time in the history of the company, it was able to trade with major international oil companies including British Petroleum (BP), Vitol, Trafigura amongst others, on an open credit supply system, a situation that helped to drive local fuel prices down in the year 2015 & 2016 even when world market prices dictated upward adjustments in fuel prices.
“The erstwhile NDC-Mahama government restructured BOST’s operations from zero imports in 2013 to running a minimum of five out of the six fully functionally and profitable petroleum terminals across the country.
“We established a petroleum-trading department in the company and within 24 months, the company traded petroleum products of mainly gasoline, gasoil, LPG and crude oil in the West African market to the tune of USD1.5 billion.
“Also, at the time of exiting office in 2017, the NDC-Mahama government bequeathed to the Akufo-Addo government, 200,000 metric tonnes of refined products valued at about GHS1 billion and 2 million barrels of crude (1 million barrels from the TEN fields and 1 million barrels of Qua-Iboe crude from Nigeria) valued at over US$100 million.
“So well did the NDC-Mahama government improve the finances of BOST through prudent management that after reducing the BOST Margin from 10 pesewas to 3 pesewas in the year 2015, we indicated in our 2016 supplementary budget that we were going to totally scrap the 3 pesewas BOST margin on the prices of petroleum products to reduce the cost of fuel products and provide some respite to Ghanaian petroleum consumers.
“It is sad to note today, that as a result of the thievery and plundering of the resources of BOST in the last three and half years, the once profitable and buoyant state asset, which was a partner to several reputable multinational oil companies under the erstwhile NDC-Mahama government has been completely run down by the Akufo-Addo government such that today, the company (BOST) has no strategic stocks of its own and is virtually borrowing to pay its workers,” Sammy Gyamfi said.
However, a statement issued by the current Management of BOST laughed off NDC’s claims.
Contrary to what the opposition NDC claims was the picture of BOST when they left office, the response of the current management of BOST was that the company was in sordid state when they took over.
The statement gave a detailed state of BOST when the NPP took over.
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“As of January 2017, the state of BOST, as company, was as follows: A trade debt of $624 million dollars, Legacy debts of GHS 273 million, 2 years operations with unaudited financial statements (2015-2016), Non-operational marine assets, Non-operational petroleum pipelines resulting in 100% reliance on BRVs for products haulage, $10 million of BOST finances locked up in TOR debt through Sahara oil among others.”
The question then is: “Is this the efficiency being referred to?” it quizzed.
The statement explained that the company’s $624 million dollar debt has been reduced to $57 million dollars as at January 2020.
It added that BOST, under the current administration, has settled the entire GHS 273 million legacy debt and revamping of BOST’s marine facilities.
“Two barges and tug boat have been refurbished and operational and currently generating revenue for the company, both of the company’s major pipelines from Tema to Akosombo, as well as from Buipe to Bolgatanga, are currently being refurbished and are expected to be operational in the third quarter of 2020,” it concluded.
Source:www.energynewsafrica.com