Business News of 2014-04-14

BOST is not for sale – Aggrieved workers

Workers of Bulk Oil Storage Transport (BOST), a state-owned oil storage company, has refuted claims by the Ghana Chamber of Bulk Distribution Companies (BDCs) that deal between BOST and TLS, a Ghanaian subsidiary of Nigerian-owned company is illegal.

They said TSL has an operator’s license issued by the National Petroleum Authority (NPA) to operate in Ghana, noting that the deal was transparent.

Addressing news conference at the company’s yard in Tema last Thursday to respond to concerns raised by the Ghana Chamber of Bulk Distribution Companies (BDCs), Albert Mante, Chairman of the Senior Staff at BOST, said the BDCs are frustrated because they have noticed an upgrade of BOST’s facilities to bring an end to perennial artificial shortage caused by them.

According to him, BOST deemed it significant to partner TSL to manage its terminals.

The BDCs are in competition therefore signing an agreement with any of them will put others at a disadvantage.

According to him, “BOST is bouncing back and very soon Tema Oil Refinery (TOR) will do same. With the introduction of TSL, BDCs who are in the habit of bringing to our depots sub-standard fuel will have it tough.”

He noted as a result of persistent delivery of substandard fuel to ordinary Ghanaians, BOST put in place a product-testing-laboratory to check adulterated fuel, which affect the engines of consumers.

The senior staff chairman said that “the only contract we have with TSL is to operate, maintain and manage our petroleum terminals. It is not TSL’s role to import products for BOST.”

He noted that TSL, an experienced company, was aware of the local content policy in the country.

He added that “we are pleased to announce to Ghanaians that the BDCs’ own assessment of their chances in court shows that they have no case. We dare them to go to court as a chamber.”

Explaining further, Mr. Mante indicated that BOST wrote to eight companies about the management of its terminals, but only three entities responded.

He cited Honeywell and Cape Three Services as companies that called for an extension of time, but TSL responded with full proposal, which met largely the requirements of BOST, adding that companies such as Jupa Ventures, ditech Engineering, Zakhem Constructions, HGS Limited and Mermot Company were contacted by BOST but they failed to respond.

Mr. Mante further noted TSL’s proposal was transparently reviewed by a committee and all the necessary approval for the BOST-TSL deal was obtained.

He said after the new management of BOST resumed office, they accessed an existing contract between BOST and Sahara, a Nigerian oil company signed somewhere in 2007 for the management of BOST terminals.