Minority in parliament demands parliamentary review of 'dubious' US$800m Ghana Gas contract

The Minority in Parliament is urging the Ghana National Gas Company to submit an $800 million gas processing contract for parliamentary scrutiny, raising concerns about transparency and potential financial risks to the state.

John Abdulai Jinapor, the Minority Spokesperson on Energy, revealed that the Chief Executive Officer of Ghana Gas is under pressure from the Flagstaff House to sign the high-value contract without proper legislative oversight.

He claims that the deal has bypassed Parliament, a move the Minority considers alarming.

“The Minority has once again become aware of attempts by the Flagstaff House to compel the CEO of Ghana Gas Company Limited to sign a contract for gas processing worth over $800 million,” Jinapor said in an interview with Joy News on September 25, 2024.

“The original tender involved a company called Phoenix. However, this company has strangely transformed into a Special Purpose Vehicle (SPV), seemingly to avoid parliamentary scrutiny.”

Jinapor, who is also the Member of Parliament for Yapei, expressed concerns over the potential consequences of such a contract, referencing past incidents of judgment debt, such as the Trafigura case, which incurred significant financial losses for the state.

He further argued that the government has yet to secure a reliable supply of raw gas to support the contract, raising questions about its long-term viability and potential economic implications.

The Minority warned that if the contract is not presented to Parliament for review, a future National Democratic Congress (NDC) government would hold those involved accountable for any financial loss incurred by the state.

“We call on Ghana Gas to submit all relevant documents to Parliament. Should they fail to do so, we will initiate processes for a full-scale parliamentary inquiry,” Jinapor cautioned.

He also advised the CEO of Ghana Gas to resist political pressure and refrain from being used for personal or political gains.

“This contract must not be rushed through without thorough examination, especially when there are concerns about its transparency and impact on the public purse,” he added.

Additionally, the Minority is seeking clarification regarding a separate $24 million contract between Ghana Gas and a private company for the establishment of a bottling plant, which they suspect may have been overpriced.



AM/KA

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