Ghana: GRA Withdraws Directive To Power Producers To Charge VAT, NHIL, GETFund
Ghana’s Revenue Authority (GRA) has withdrawn a directive it issued to power producers to apply VAT, GETFund and NHIL charges on power distribution company, Electricity Company of Ghana (ECG).
This follows concerns raised in the media about the possibility of cost of electricity going up.
A statement issued and signed by Florence Asante, Assistant Commissioner at GRA, said the Authority is scheduling a meeting with the power producers to address the application of the VAT to the power sector.
GRA assured the general public especially power consumers that, no new taxes or are being introduced or levied on power consumption especially in the midst of COVID-19 pandemic.
Below is the full statement:
Scan- VAT GETFUND LEVY & NHIL ON ENERGEY CHARGES
Source:www.energynewsafrica.com
Ghana: Stop ECG From Passing VAT, NHIL, GETFund On Electricity End Users-CIPDiB To GRA
The Chamber of Independent Power Producers Distributors and Bulk Consumers (CIPDiB) is asking the Ghana Revenue Authority (GRA) to stop the Electricity Company of Ghana (ECG) from charging electricity consumers VAT, NHIL and GETfund levies.
“We would like to call on the Ghana Revenue Authority to formally circulate a letter to the
concerned stakeholders in the power sector withdrawing their earlier directive and direct
the Electricity Company of Ghana to specifically desist from charging Ghanaians those taxes with immediate effect,” a statement issued by the CEO of CIPDiB, Elikplim Kwabla Apetorgbor, said.
The call follows a statement issued by the GRA to clarify its earlier directive to power producers to charge Electricity Company of Ghana (ECG) VAT, GETFund and NHIL which have been interpreted as an attempt to increase cost of electricity.
The GRA’s statement noted that ECG was already charging consumers GETfund, NHIL and VAT and, therefore, expressed worry over the development.
Reacting to the issue, CIPDiB said these add-on taxes on the end user tariff is the limitation for PURC to give cost compensatory tariff to fix the Annual Revenue Requirement shortfalls of the sector.
“Besides, the sector operates a pass through cost system, so any needless induced cost will automatically be passed on to the end users, hence, the need to control cost in the power supply chain,” CIPDiB concluded.
Meanwhile, CIPDiB is also calling for the removal of VAT, NHIL and GETFund levies for End User tariff.
Source:www.energynewsafrica.com
Ghana: COVID-19: Vivo Energy And Retailers Install Water Storage Facilities At Lorry Parks, Markets
Vivo Energy Ghana, the Shell Licensee, in partnership with its retailers, have installed three water storage tanks and handwashing facilities at the Koforidua Central market and Lorry Parks to ensure regular supply of water for handwashing towards the fight against COVID-19 in the Eastern region.
The initiative forms part of Vivo Energy Ghana’s Retailer Sustainability Programme, launched to support the fight against COVID-19 in various retail communities.
Other items donated to the central market and lorry parks included boxes of hand washing soaps, tissue paper, nose masks, hand sanitizers and four foot-operated handwashing facility to encourage regular handwashing in these densely populated areas. The team also donated infrared temperature guns to the New Juabeng Municipal Assembly.
The Retailer Sustainability Programme forms part of Vivo Energy Ghana’s comprehensive programme on COVID-19 prevention being rolled-out to complement the government’s efforts in combating the virus from Ghana and ensuring the decentralization of support to local communities.
The Honourable Municipal Chief Executive of New Juaben South Assembly, Mr. Isaac Appaw-Gyasi, who cut the tape to inaugurate the facilities, expressed his appreciation to Vivo Energy Ghana and its retailers for the timely intervention at the markets and lorry parks to combat corona virus from Koforidua and its environs.
“The gesture is timely and I must commend Vivo Energy Ghana and its retailers who operate under the Shell brand for the intervention. I am very hopeful that this support will help curb the spread of the virus among residents and commuters who use the lorry parks. I want to urge everyone to use the facilities anytime they visit these places to reduce the cases in the region”, he advised.
The Market Queen of the Koforidua Central Market, Nana Ama Bonsu said the installation of the water storage tanks would help solve the water shortage at the market, especially during this period where water is an essential element in the prevention of COVID-19.
For his part, the Eastern Regional Chairman of the Ghana Private Road Transport Union (GPRTU), Mr. Johnson Kyereh, lauded Vivo Energy for the kind gesture and charged his members to continue to patronise Shell’s quality fuels and engine oils to support the company’s initiative.
Commenting on the programme, the Managing Director of Vivo Energy Ghana, Mr. Ben Hassan Ouattara, reiterated the company’s commitment to supporting the government’s efforts against the virus to ultimately bring life to normal.
“As an energy company, we care about our people, customers and communities and believe that the Vivo Energy Retailer Sustainability Programme will help to reach, protect and minimize the impact of this life-threatening virus on people, especially those in our rural communities”, he said.
He further urged the beneficiaries to use the items for its intended purpose while observing the safety protocols and the President’s directives on social distancing and wearing of nose masks.
Since the launch of the Retailer Sustainability Programme, various government institutions have benefitted from it. They include the National Commission for Civic Education and Effiankwanta Regional Hospital in the Western Regional, Tamale Teaching Hospital in the Northern Region, Kenyasi Health Centre and Ahinsan Camp Prison in the Ashanti Region.
Source:www.energynewsafrica.com
Commenting on the programme, the Managing Director of Vivo Energy Ghana, Mr. Ben Hassan Ouattara, reiterated the company’s commitment to supporting the government’s efforts against the virus to ultimately bring life to normal.
“As an energy company, we care about our people, customers and communities and believe that the Vivo Energy Retailer Sustainability Programme will help to reach, protect and minimize the impact of this life-threatening virus on people, especially those in our rural communities”, he said.
He further urged the beneficiaries to use the items for its intended purpose while observing the safety protocols and the President’s directives on social distancing and wearing of nose masks.
Since the launch of the Retailer Sustainability Programme, various government institutions have benefitted from it. They include the National Commission for Civic Education and Effiankwanta Regional Hospital in the Western Regional, Tamale Teaching Hospital in the Northern Region, Kenyasi Health Centre and Ahinsan Camp Prison in the Ashanti Region.
Source:www.energynewsafrica.com
Ghana: TBEA Supports GRIDCo With PPE Worth GHS100,000
Chinese power company, TBEA has donated Personal Protective Equipment (PPE) worth GHS100,000 to the Ghana Grid Company (GRIDCo), as part of measures to support the power transmitter in fighting the spread of the novel coronavirus pandemic.
As the world continues to grapple with the COVID-19 pandemic, several corporate organisations in the country have adopted plans to ensure business continuity whilst ensuring the safety of workers and stakeholders.
GRIDCo has been one of the many companies at the forefront of propagating the right messaging and awareness about the coronavirus, both for staff and external stakeholders.
The Company has instituted strict measures around social distancing, safety measures at the workplace and an efficient working from home policy to ensure it continues to carry out its mandate of uninterrupted power supply to its customers.
The donation by TBEA will complement structures already put in place by the Company to ensure employees are able to work efficiently despite the setbacks of the pandemic. The items donated included nose masks, hand sanitisers, gloves and liquid soap.
Ghana’s total coronavirus count stands at 5,530 with 674 recoveries and 24 deaths.
Receiving the PPE, Chief Executive of the Ghana Grid Company, Jonathan Amoako-Baah said: “TBEA is an important partner in Ghana’s power sector and we are grateful for their support. We always aim, as a Company, to ensure enhanced safety and protection for our employees as they go about their duties, especially during this COVID-19 pandemic era. The PPE will be put to appropriate use for the benefit of all.”
Commenting during the presentation, TBEA Vice President, Jia Xiaohui, said: “GRIDCo is an essential player in Ghana’s power sector and it is important for their workers and contractors to be protected in their daily operations. We are confident that these items will contribute significantly in ensuring business continuity for the national grid.”
TBEA is a leading power company, headquartered in China, with international experience in power supply and grid development throughout the world.
The Company is currently undertaking power expansion projects in Ghana in partnership with the Ghana Grid Company.
Source:www.energynewsafrica.com
COVID-19 Pandemic: Renewable Energy Sector Sheds 600,000 Jobs
The renewable energy industry in the United States has lost close to 600,000 jobs since the beginning of the Covid-19 pandemic, a report from BW Research Partnership has revealed.
Most of these jobs were lost during April, the research firm said, at 447,200, or triple the number of jobs the industry lost in March. The total job loss so far constitutes as much as 17 percent of total employment in the industry, BW Research said.
Last month, a group of organizations, including BW Research Partnership, warned that more than half a million jobs could be lost in the renewable energy industry because of the crisis.
At the time, one of the organizations, E2, said the number of jobs lost in March was equal to the number of new jobs added in the industry last year.
And the pain is not over either, BW Research Partnership warned in its report, with the number of job losses continuing to increase this month and beyond.
“Our previous projection of a half million or 15 percent of all clean energy jobs lost by the end of June has already been surpassed,” BW Research Partnership said.
“Based on that analysis, along with forecasts from clean energy trade groups and reports from individual companies, we conservatively project that the clean energy sector will lose about a quarter of its workforce or 850,000 jobs by the end of the second quarter if no actions are taken to support the clean energy industry and its workers.”
According to another survey, from the Solar Energy Industry Association, the solar power industry alone could shed half of its 250,000 jobs over the next few months unless urgent relief measures are put into action.
Back in April, E2 called on Congress to help the industry get through the crisis with as little losses as possible by extending tax incentive application deadlines and by providing temporary refundability for renewable tax credits “that are increasingly difficult to monetize.”
Eni Retains Descalzi As CEO For Third Term
Italian oil and gas major Eni has retained its Chief Executive Officer, Claudio Descalzi for the third time.
The company has also named its new chairwoman and members of board committees.
This will be the third term in the role of Eni CEO for Claudio Descalzi where he will also serve as the general manager of the company,
He will be responsible for the management of the company, except for specific responsibilities that are reserved for the board of directors and those that are not to be delegated according to the current legislation.
Descalzi who is the current CEO of Eni was appointed in May 2014
He started his nearly forty-year career in Eni in 1981 as an oil and gas field petroleum engineer and, then, the project manager for the North Sea, Congo, and Nigeria areas’ development. In 1990 he became Italy’s head of reservoir and operating activities.
After working in different roles in the company he was named the deputy chief operating officer of Eni’s exploration and production division in 2005, while between 2006 and 2014 he was appointed president of Assomineraria.
Meanwhile, between 2008 and 2014, he became the COO of Eni’s exploration and production division and from 2010 to 2014 he was chairman of Eni UK.
The company added that it confirmed the tasks assigned to the new chairwoman of Eni – Lucia Calvosa – who replaced Emma Marcegaglia. She would be in charge of managing the relationship of the head of internal audit with the board of directors.
Also, Calvosa will carry out her statutory functions as legal representative managing, in particular, institutional relationships in Italy and identify and promote integrated projects and international agreements with strategic importance, both in cooperation with the CEO.
The 59-year-old Cavosa is a lecturer in commercial law at the University of Pisa. She currently sits on five boards – Banca Monte dei Pashi di Siena, Editoriale Il Fatto, Università Cattolica del Sacro Cuore, Fondazione Teatro di Pisa, and Telecom Italia where she is also the chairwoman.
According to the company, directors on the board – Ada Lucia De Cesaris, Pietro A. Guindani, Karina A. Litvack, Emanuele Piccinno, Nathalie Tocci, and Raphael Louis L. Vermeir – have the required independence requirements set by law.
Calvosa cannot be considered independent being a significant representative of the company.
Eni’s board of directors also appointed members of the Control and Risk, Remuneration, Nomination, Sustainability and Scenarios committees.
The Control and Risk Committee will consist of Pietro Guindani as chairman and Raphael Vermeir, Ada Lucia De Cesaris, and Nathalie Tocci will be the remaining members.
The Remuneration Committee will be chaired by Nathalie Tocci while Karina Litvack and Raphael Vermeir will be the other two members.
Ada Lucia De Cesaris will be the chairwoman of the Nomination Committee and Pietro Guindani and Emanuele Piccinno will be its other members.
The Sustainability and Scenarios Committee will have Karina Litvack as its chairwoman and Raphael Vermeir, Nathalie Tocci, Filippo Giansante, and Emanuele Piccinno as its members. All members of the committees are non-executive and majority independent.
Source:www.energynewsafrica.com
Liberia: ‘Free Electricity During Lockdown Not Feasible’-LEC
Liberia’s Electricity Corporation (LEC) has indicated that President George Weah’s stimulus package plan to provide free electricity for citizens during the lockdown under a declared State of Emergency is not feasible.
According to LEC, it is not in the position to provide free electricity.
The electricity company has said is only prepared to give US$20.00 coupon for a period of one month, but even with this option, it will be determined by the commitment of the Ministry of Finance and Development Planning to adhere to the demands of the LEC to give cash in advance.
The US$20 coupon, according to frontpageafrica.com, is based on what the average consumer pays for power in a month.
A total of US$1.3 million has reportedly been inserted in the budget to cover the coupon which LEC has agreed to pay base on taxes owed the government.
The LEC reportedly collects US$800.000 in monthly bills and will be getting US$1.3 million from the government for the duration of the lockdown. The company targets 65,000 consumers but only 25,000 pay every month.
The Ministry of Finance says it will shortly be releasing a detail explanation on how the tokens will be rolled out in the coming days.
“The truth is LEC cannot provide free power to all of its customers. LEC has a total connection base of sixty-five thousand, forty-five of those are household, while the others are businesses. The forty-five thousand household is a small percentage of the more than three hundred thousand households in Montserrado County. The question is, how do they provide free power when their production level cannot meet the demand? So, they worked out their own math and the calculation says during this period they can give only US$ 20.00 worth of electricity and that quantity of electric times the forty-five thousand must be given to them in money by the Ministry of finance.”
Recently, the government announced that as part of President Weah’s stimulus package approved by both houses of the national legislature, US$4 million was put into the account of the LEC for the provision of free electricity during the period of the lockdown.
However, the LEC says that amount was payment of arrears for services provided the government in the past.
According to Senator Conmany Wesseh, chair of the Senate Sub-Committee on Autonomous Agency, under the State of Emergency, authorities of the LEC and the Liberia Water and Sewer Corporation have told them (Committee members) that they are not empowered to implement the president mandate.
“The truth is LEC cannot provide free power to all of its customers. LEC has a total connection base of sixty-five thousand, forty-five of those are household, while the others are businesses. The forty-five thousand household is a small percentage of the more than three hundred thousand households in Montserrado County. The question is, how do they provide free power when their production level cannot meet the demand? So, they worked out their own math and the calculation says during this period they can give only US$ 20.00 worth of electricity and that quantity of electric times the forty-five thousand must be given to them in money by the Ministry of finance.”
In his message, the President told the lawmakers that it is was important that the government shoulders the electricity and bill of households in the affected counties for the duration of the stay-at-home order.
Equatorial Guinea: Russia’s Rosgeo, MMH Sign Hydrocarbon Exploration Contract
Russia’s state-owned joint stock company, Rosgeo and the Ministry of Mines and Hydrocarbons (MMH) of Equatorial Guinea have signed two services contracts for the initial phase of seismic acquisition in transit zone and state geological mapping in the Rio Muni area, Equatorial Guinea.
These contracts follow the signing of a Memorandum of understanding between both entities during the Russia-Africa Summit in Sochi last October.
JSC Zarubezhgeologia will be performing scouting works for state geological mapping, while JSC Yuzhmorgeologia will be performing scouting works for complex seismic acquisition in the transit zone of Rio Muni.
The activities are notably aimed at analysing landscape conditions for geological surveying and prospecting, determining the scope of mapping drilling, researching the possibility of mineralogical sampling of channel deposits, analysing technical conditions for the arrangement of geological camp in Rio Muni, and other scouting necessary to prepare for next phases of exploration works.
“Such exploration activities will help in extending additional natural resources potential and reserves in Rio Muni, notably crude oil, natural gas and minerals. This falls under the increasing cooperation between the Russian Federation and the Republic of Equatorial Guinea, and will help in building a strong exploration base in the country,” state H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons.
“Russian geologists formed the basis of Equatorial Guinea’s geological exploration industry back in the 1970s, and we are delighted to be reviving this successful collaboration and bring in world-class geological activities to the Rio Muni area,” declared Sergei N. Gorkov, CEO of Rosgeo.
The Rio Muni area is believed to be one of the most promising exploration frontiers in Equatorial Guinea, which could turn the country once again into a hotspot for natural resources exploration. Increased exploration is expected not only to help in sustaining and increasing domestic output of oil and gas, but also in proving additional reserves in key minerals to help Equatorial Guinea further diversify its economy.
Source: www.energynewsafrica.com
Equatorial Guinea Awards Contract To American Company Nexant For Methanol-To-Derivatives Plant
The Ministry of Mines and Hydrocarbons (MMH) of Equatorial Guinea, in collaboration with the Atlantic Methanol Production Company (AMPCO), has awarded American company Nexant the feasibility study for the construction of a new formaldehyde production plant in Punta Europa.
The project is part of the Year of Investment and was previously agreed during a meeting last January between H.E. President Teodoro Obiang Nguema Mbasogo, H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons, Marathon Oil Chairman, President and CEO Lee Tillman and Executive Vice President Mitch Little.
Formaldehyde is a key component in the manufacturing of plastics, clothing, paper, and is widely used in industries derived from wood. The construction of such a facility in Equatorial Guinea would open doors for the establishment and growth of such related industries in the country.
The feasibility study for the project is expected to be ready by mid-June 2020, and is part of the ongoing Year of Investment 2020.
“We are on track to deliver several projects under the Year of Investment 2020 following the award of the feasibility study for a 5,000 bpd modular refinery to VFuels last month, and the award of the feasibility study for the methanol-to-derivates plant this week,” declared H.E. Gabriel Mbaga Obiang Lima.
“These are two landmark projects of the Year of Investment that will boost the local transformation of domestic oil and natural gas and create substantial jobs for the country,” he added.
The Year of Investment 2020 projects aim at attracting investments across Equatorial Guinea’s midstream and downstream industries and promote infrastructure that adds value to the hydrocarbons industry of the country through job creation.
In light of the ongoing economic crisis in the region, the Year of Investment has also become a way for Equatorial Guinea to ensure a quick and sustainable recovery of its economy by promoting investments in key infrastructure projects that can create local value and generate revenue for the country.
Key projects being promoted under the Year of Investment notably include a modular refinery for domestic supply, an additional modular refinery which could be destined for exports, storage tanks for refined products, methanol derivatives manufacturing, an industrial mining area with a gold refinery, and a urea plant project.
Source:www.energynewsafrica.com
Ghana:TOR Worker In Shootout With Suspected Land Guards, Kills Gang Leader
A worker at the Tema Oil Refinery (TOR) has shot and killed the leader of a suspected land guard gang at Green Stone near Afienya in the Greater Accra Region.
This was when the gang engaged the TOR worker in a shootout at about 7 pm Wednesday, May 13, this year.
Just when the TOR worker, Thomas Oppong, a Technician Mechanic, and his family had finished preparing fufu (a local dish) for their dinner, sources said the suspected landguards, numbering about 20, stormed the residence of Thomas Oppong, which is about 100 meters away from the Afienya-Kpong main road of the Eastern Corridor.
Except two who were spotted in a car, the rest were riding motorbikes.
The sources said before they knew it, the land guards were beating Thomas Oppong.
As he managed to escape, they opened fire but he fled.
The sources told energynewsafrica.com that Thomas had a registered pump action gun and managing to grab it, returned fire at the assailants, killing the gang leader.
The rest, seeing their ‘Goliath’ fall, fled the scene.
Thomas, the sources narrated, managed to vacate his residence with his family and later reported himself to the Afienya District Police, who had already heard of the incident and, so, detained him.
When the Afienya police, led by the Commander, Supt Nana Ofori, visited the crime scene, the fufu which Thomas and the family had prepared for their dinner had blood spills on it.
The police retrieved some items including empty cartridges.
The sources indicated that besides Thomas being a technician at TOR, he is a hunter.
Sources within the Afienya police told energynewsafrica.com that management of TOR delegated some staff, led by the Head of the Security, visited Thomas who is currently in the police custody.
When energynewsafrica.com’s team visited the scene Thursday morning, there was not a single person spotted.
There were a couple of gunshot holes on the wall of Thomas’ residence with his gate smashed.
Investigations conducted by energynewsafrica.com indicate that Thomas took a loan and bought about four plots of land some years ago.
He, then, put up two rooms and moved in to settle.
Later, someone started developing part of the property of Thomas and later hired the criminal services of land guards to be harassing Thomas.
Energynewsafrica.com’s investigation further revealed that Thomas, who became troubled over the development, took the issue to a law court only to realise that the owner of a popular roofing sheet company in Accra, capital of Ghana, was the one developing the land.
The court, according to sources, placed an injunction on further development of the land but the developer (name withheld) got land guard to harass him the plaintiff.
According to a family, source Thomas had reported the issue of harassment to the Afienya Police severally but little was done to ensure that peace prevailed.
An elder of the family, who spoke to energynewsafrica.com when the reporter visited the area, said Thomas had stayed on the land for some years with his family.
The elder, who sought anonymity, narrated that land guards had been harassing legal property owners in the area for far too long.
He, therefore, called on the Inspector General of Police (IGP) to check the conducts of his security personnel at the district.
Source: www.energynewsafrica.com
Ghana: Power Producers Ordered To Charge ECG GETFund, VAT, NHIL Levies
Power producers in the Republic of Ghana have been directed to charge Getfund Levy of 2.5 percent, National Health Insurance Levy (NHIL) of 2.5 percent and Value Added Tax (VAT) at a standard rate of 12.5 percent on the value of power supplies to the Electricity Company of Ghana (ECG).
The directive was given by the country’s revenue authority, Ghana Revenue Authority (GRA).
The directive comes barely a month after the Chief Executive Officer of the Chamber of Independent Power Producers, Bulk Distributors and Consumer called for the removal of these inessential taxes on electricity.
These levies and charges, he said do not only create inconvenience and burden to consumers but also weaken the capacity for growth as a nation and make distribution companies (discos) uncompetitive.
“Complete removal of these taxes and a reduction in gas price will make Ghana’s position as one of the benchmarks in the sub-region and bring visible economic relief to the country,” he stressed in an article copied to energynewsafrica.com.
However, in a statement signed by the Acting Commissioner General, Ammishadai Owusu-Amoah said the Authority’s attention was drawn to a letter purported to be an agreement between the erstwhile VAT Service and ECG and some power producers which stated that the VRA should zero rate supplies to ECG.
This, the GRA said, is in contravention to the Value Added Tax, 2013 (Act 870) which does not list supply of energy and capacity charge as one of the items that should be zero-rated.
“We wish to state that Section 36 of the Act which provides for zero-rating of supply refers to the Second Schedule of the Act. However, the Second Schedule of the Act did not list supply of energy and capacity charge as one of the items that should be zero-rated,” GRA said.
The Authority argued that “electricity and power is a taxable activity as defined in Section 5 of the Act and all supplies to ECG is also taxable.”
By these, he said they are, therefore, directing all electricity and power producers to start charging ECG the prescribed levies under the law.
Source:www.energynewsafrica.com
Ghana: Withdraw Directive Asking Power Producers To Charge VAT, NHIL, GETfund– Mutawakilu To GRA
The Minority Spokesperson on energy in Ghana’s parliament Hon. Adam Mutawakilu is demanding the withdrawal of a directive from Ghana Revenue Authority (GRA) asking power producers in the West African nation to charge VAT, GETfund and NHIL levies on electricity they sell to the Electricity Company of Ghana.
A letter from the GRA dated 4th May 2020 announced the directives, indicating that such services will no longer be zero-rated.
Reacting to the issue in an interview with Accra-based Citi FM, Hon. Mutawakilu, who is the Member of Parliament for Damongo said the decision if implemented will increase the cost of electricity to unbearable levels.
“You are all aware that on the 9th of April, President Nana Addo addressed the nation with respect to COVID-19. In that address, he did indicate that consumers of electricity will be given a relief of 50%. Ghanaians welcomed it wholeheartedly and he did indicate that it will take effect from 1st May even though many consumers were not able to access that relief on the given date.”
“What Ghanaians did not know and more particularly, residential consumers who are the majority of consumers is that President Nana Akufo-Addo was giving the residential consumers the relief on the right hand and using the left hand to take back the relief. On May 4, 2020, a letter from GRA directed ECG to charge GETFund levy, National Health Insurance Scheme and VAT on residential consumers of electricity and that means that if you do the arithmetic, consumers will be paying 18.125% more on what they are consuming currently. We call on GRA to withdraw the levy,” Mutawakilu said.
Source:www.energynewsafrica.com



Disguised as fishing boats, these massive wooden vessels, with the storage capacity of tens of thousands of litres, propelled by twin-outboard motors, go to the high seas, mostly at night, where criminal oil tanker ships dock.
Tons of fuel is pumped from the tankers into the dendeys (wooden boats) which sail to different beaches and discharge their content into waiting road fuel tankers on the blind side of tax and other regulatory authorities.
The state loses large amounts of revenue and regulators lose levies as a result of these illegal activities of fuel smugglers.
As if that is not enough, large quantities of fuel, mostly diesel, spill on the beaches, thereby causing pollution and other environmental hazards.
This illegally procured fuel which is usually of low quality end up on the market, having escaped the regulatory scrutiny and quality assurance of the National Petroleum Authority (NPA), posing serious risks to vehicles.
At the meeting between the Ghana Maritime Authority, the Head of Marine Police, DCOP Iddi Seidu, and the Western Naval Command, Commodore E.A. Kwafo, the Acting Flag Officer Commanding of the Western Naval Command, painted a bleak picture of risks posed by the ‘dendeys’.
“We are rearing a monster which will one day consume all of us,” he said tersely.
Commodore Kwafo said the owners of these boats, if not stopped, may become emboldened and may start using their boats to cart other illicit products such as weapons and drugs.
He praised the GMA for instituting night patrols which have led to the arrest and seizure of some ships and dendeys engaged in illegal bunkering.
The Director General of GMA, Mr Thomas Alonsi, who was accompanied by his two deputies, Messrs Daniel Appianin and Yaw Antwi Akosa, as well as the Head of Legal and Board Secretary, Mrs Patience Ella Diaba, commended the Naval Command and the Marine Police for detailing armed men to provide security for the night patrols.
He said it was fiercely urgent for the illegal fuel dealers to be reined in and put on a leash.
“The building of these boats is itself in violation of the GMA’s regulations because by law, they are required to obtain a permit from us to build such vessels. My officers here, however, tell me no one has ever applied for any such permit.”
Mr Alonsi said beyond that, the boats are supposed to be registered and licensed to go to sea but none of the dendeys is registered or licensed or even marked.
“This is not right,” he said.
The Head of the Ghana Maritime Authority at Takoradi, Captain William E. Thompson, explained that destroying the boats would achieve a number of things – make it unprofitable to engage in fuel smuggling, protect fuel consumers from substandard products and generate revenue for the state.
Source:www.energynewsafrica.com