Business News of 2014-04-17

BOST- TSL contract was to avoid conflict of interest - MD

The Bulk Oil Storage and Transportation (BOST) Company Limited, says its decision to outsource the operations of its terminals to TSL-Ghana and not to the Bulk Distribution Companies (BDC) is to avoid conflict of interest.

The Managing Director, Kingsley Kwame Awuah-Darko said the main functions of the BDCs are to serve as petroleum importers and also as trading companies.

Besides, the BDCs are not very much versed in the management of terminals as compared to TSL-Ghana.

“BDCs in the country who want to manage the terminals cannot serve as players, referees, and linesmen at the same time,” he said.

Addressing journalists on Wednesday on reasons for outsourcing its terminals to TSL-Ghana, he said every decision taken by BOST as far as the outsourcing of its terminals are concerned would always be in the best interest of the country.

He said the structural change are to help stabilize petroleum products in Ghana by ensuring adequate supply of petroleum onto the markets on regular basis and to eliminate inefficiencies at the storage depots that have occasioned a $33 million liability to the company.

“The structural change to outsource the terminals was also to prevent the delivery of substandard petroleum products to the Ghanaian market,” he added.

He said BOST had followed all laid-down procedures in its dealings with TSL-Ghana, adding that the company (TSL-Ghana) has been given 12 months to meet standards spelt out by BOST or have their contract abrogated.

He expressed his disappointment with the BDCs for being critical of BOST structural change on its terminals as they (BDCs) had suspended utilising the BOST depots with the exception of the Accra Plains Depots (APD) since September 2013.

According to him, all BOST facilities are not operating well as they are suffering from ineffective inventory management, poor maintenance of existing facilities, high risk to health, safety, low morale among staff and risk to the environment.

Mr. Awuah-Darko said BOST’s dealings with TSL-Ghana would bring about a turn-around of a failing Government institution, efficient utilization of a state asset and petroleum price control.

“It would also bring about strategic stock security for Ghana, ensure Government control of strategic stock and also establish BOST as the most relevant player in the downstream sector,” he said.

Kakra Esamuah, Board Chairman of BOST, said although TSL is a Nigerian company, its subsidiary in Ghana had been registered, adding that BOST had not been sold to TSL-Ghana as the media and the BDCs wanted people to believe.

He debunked the assertion that the Minister of Energy had called for a probe into BOST’s dealings with TSL-Ghana as the Energy Minister had fully expressed his support to the contractual agreement.

Source: GNA
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