Business News of 2014-06-28

Gov’t must account for TOR debt recover levy – PEF

The Private Enterprise Federation (PEF) is asking government to publish the specific amount generated since the implementation of the Tema Oil Refinery (TOR) debt recovery levy in 2003.

According to the PEF, more than GHC 1.1 billion has been generated since the introduction of the levy and should be able to prevent recurrent fuel shortages. The Chief Executive Officer of the PEF, Nana Osei Bonsu, together with some Civil Society Groups (CSOs) and other stakeholders were present at Citi FM’s roundtable on fuel subsidies discussion under the theme: “Revisiting the fuel subsidy debate-cross road, hard choices.”

Taking his turn to address the discussants, Nana Bonsu said: “The TOR debt levy should have been paid off by now, if it’s not the TOR debt levy act came into being in 2003 and we are in 2014. For 10 years what was the debt initially? How much has been paid off? How much has been accumulated?”.

It is unclear how much the TOR debt is but reports in 2011 indicated that the TOR debt was GHC 1.5 billion. Nana Osei Bonsu debunked reports suggesting that the amount generated from TOR debt recovery levy was used to pay for the interest that accumulated on the principal sum.

He also asked if government was truly paying on subsidy on petroleum product. The Executive Director of the Consumer Protection Agency (CPA), Kofi Kapito on his part said the calls for the removal on all forms of subsidies on petroleum products should be measured. He asked government to introduce and efficient mass transport system as an alternative before subsidy removal.

Meanwhile, the Executive Director of the IMANI Ghana, Franklin Cudjoe is of the opinion that Ghana is in no position to subsidizes fuel because of the current challenges in the economy.

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