Millions of waste at Ghana National Petroleum Corporation

The draft forensic audit report commissioned by the New Patriotic Party (NPP) Government to investigate malfeasance in State Owned Enterprises has recommended the prosecution of the former Chief Executive of the Ghana National Petroleum Corporation (GNPC), Tsatsu Tsikata under section 179(A) of the Criminal Code for flouting PNDC Law 64 and causing huge financial loss to the state.

GNPC under the management of Tsikata allegedly indulged in derivatives trading with Societies General Bank (SGS) up to the tune of $40 million without the approval of GNPC’s board members. Tsatsu who reportedly, wedded the former Public Affairs Manager of GNPC Esther Cobbah recently, is also accused of recklessly purchasing Oil Rigs up to the tune of $38 million.

This was also without the approval of the GNPC board. The report also recommends that Tsikata be prosecuted for the disbursement of an advance of ?7.2 billion from CDH Financial Services without board approval.

Tsikata is already in court for the company’s investment of US$1.0 million in Valley Farms Limited also allegedly without board approval. GNPC was set up in 1985 to explore petroleum opportunities or hydrocarbons in the country. But under Tsatsu Tsikata as Chief Executive, the company added a host of other functions.

It went into salt production in the Songhor Lagoon at Ada, a situation which generated much controversy. It also started promoting cleaner energy fuel such as LP gas. GNPC also had interests in a hotel at Mole in Northern Ghana. The Corporation’s tentacles also covered gold mining at Prestea and Gas thermal plant still under construction at Effasu in the Western Region. They were also involved in telecommunications.

Media reports linked the resignation of Dr Kwesi Botchwey, former Finance Minister to uncontrolled expenditure of GNPC without anybody calling Tsatsu to order. Botchwey himself has admitted that he resigned because of GNPC. Reports said GNPC had over drawn its accounts to the tune of ?80 billion, something which frustrated the Finance Minister leading to his resignation.

GNPC was also deeply involved in the West African Gas pipeline project. However last April, the Volta River Authority replaced GNPC as a partner of the West Africa Gas pipeline project due to its inability to raise money for the shares. Observers saw the pipeline as GNPC’s last hope for redeeming its image.

The gas pipeline consortium is made up of the Nigerian National Petroleum Corporation, SOBEGAZ of Benin, SOTOGAZ of Togo, Shell Petroleum Company of Nigeria and Chevron. GNPC’s 33 percent share in WESTEL has also been allegedly given to the Ministry of Transport and Communications.

Meanwhile, the government has started a process aimed at downsizing the over 700 staff of GNPC to about 70 workers.

At a press conference in Accra last year, the Minister for Energy Albert Kan Dapaah said his ministry had recommended a small well-motivated staff of about 70 to team up with other companies to do speculative surveys for oil.

If they find anything viable from the speculative surveys, they would go and market the seismic data, if they find a buyer they would split the proceeds, he said. “Until we find something, in my opinion, there is absolutely no need to have a staff strength of over 700 workers,” Kan Dapaah further explained.

In March, the GNPC’s oil exploration rig “Discoverer 511” was seized in Oman on the orders of Societe Generale Bank because of the corporation’s indebtedness to the bank.