The Bulk Oil Storage and Transportation Company ( BOST) has been ranked as the best 8th performing state-owned enterprise among 50 enterprises at the Maiden Public Enterprise League Table (PELT) held last Thursday at the plush Kempinski Hotel in Accra.
BOST beat Energy Sector Agencies such as Volta River Authority which secured 11th position, GNPC 14th position, Ghana National Gas Company 21st position, Tema Oil Refinery (TOR) 35th position and Ghana Cylinder Manufacturing Company (GCMCL) 46th position.
BOST has seen a transformation over the last four years under the current Managing Director, Edwin Provencal.
At the time he assumed office in 2019, BOST’s assets, such as pipeline infrastructure, storage tanks, barges, tugboats and other vital installations had been abandoned for years without repairs.
Besides, BOST was saddled with huge legacy debts which dated back to the National Democratic Congress administration.
However, the sordid state of BOST has seen a massive improvement in the company’s assets.
In 2020, BOST recorded a profit-before tax of GHc9.84 million.
Previously, it took about four hours for Bulk Road Vehicle (BRV) drivers who went to BOST depots to load fuel.
However, after a restructuring exercise at the depots, it now takes less than two hours for the drivers to go through the pre-loading and post-loading process and exit the depots.
Speaking at the unveiling of the 2020 Public Enterprise League Table in Accra, Ghana’s Vice President Dr. Mahamudu Bawumia noted that State Entities play an important role in the economy of Ghana.
He said there is no doubt that they would continue to play critical roles in the economy going forward, and the government would give them all the support to achieve profitable and sustainable operations.
“Since 2017, however, we have seen improvements that provide hope that the measures being put in place by the government of His Excellency Nana Addo Dankwah Akufo-Addo are beginning to yield results.
“This is why I believe the theme: ‘Improving Public Sector Business Outcomes’ is particularly relevant to these maiden Public Enterprises League Table,” Dr Bawumia said.
Dr. Bawumia expressed worry about entities that had not presented their audited accounts over a long period.
“While stating this, however, I would like to admit that there are still several non-complying entities when it comes to financial reporting. I would like to also state that relative to timely financial reporting, the honeymoon is long over and severe sanctions will follow from now onwards for those who fail to meet required deadlines as specified in the law,” he warned.
According to Dr Bawumia, the state must generate beneficial economic and social outcomes from its investments in these entities, and the efforts made to improve reporting. The use of digital technology should make reporting much easier and seamless going forward.
He commended the Minister for Public Enterprises, Joseph Cudjoe, for the initiative.
The Minister for Public Enterprises, Joseph Cudjoe, explained that when an entity is last on this league table, it does not mean it is going on relegation, but needs more attention including training and capacity building and possibly further capitalisation by the shareholder.
On the other hand, he said when an entity is first, it means, to a large extent, it is doing the right thing and must be encouraged to do more.
“This is why the PELT must be understood as management by exception tool.
“Let the PELT keep reminding you that these issues of profitability, payment of dividends, timely reporting, efficiency in service delivery and many others, remain a challenge for us to solve after receiving or not receiving an award tonight,” he said.
The Director-General of State Interest and Governance Authority ( SIGA), Edward Boateng said SIGA, as an authority, would continue to use the PELT and other enhanced management tools available to demand growth, accountability and performance from the specified entities.
He, therefore, encouraged all SEs to take the performance contract signing seriously going forward because of this new dimension of a league table and award scheme.