Government agencies’ US$1billion indebtedness to GNPC giving it ‘headache’ – PIAC

Debts owed to the Ghana National Petroleum Corporation (GNPC) by government agencies are taking a toll on the state-owned oil firm, the Public Interest and Accountability Committee (PIAC) has warned.

Speaking on the topic ‘Highlights of PIAC Issue Paper II’ on Time with PIAC, the Committee’s Technical Manager, Mark Agyemang said: “The government is responsible for the development of the country,” pointing out: “These state-owned enterprises can come in through corporate social responsibility or investment, as you may want to call it.”

“We have instances, which we have documented extensively, where the government will ask GNPC to pre-finance or give guaranties or give loans to other state-owned enterprises.”

“We have the case of VRA, we have the Karpowership, we have ECG, we have the western corridor road enclaves, and we have the Tema Oil Refinery, where currently, as we speak, GNPC is owed almost to the tune of a billion dollars,” he cited as examples.

He said, “The state is supposed to pay them but it is the same state that is funding them,” pointing out: “You see the dichotomy here.”

“It is an issue that actually causes financial headaches to the Corporation.”

He proposed: “If the governance structure of GNPC is diversified enough where all appointees are not from the government, we will have independent bodies also making appointments to the governance board of GNPC, they can be in the position to say no to some of these government demands.”

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