TOR-Torentco deal inimical – Minority asks government to halt contract

The Minority in Parliament has described as inimical the government’s decision to lease the Tema Oil Refinery to a group named Torentco Asset Management (TAM).

According to them, the contract will not auger well for Ghanaians in the long run.

Speaking to journalists in parliament on July 13, the Ranking Member on the Mines and Energy Committee of Parliament, John Jinapor noted that the contract does not meet value for money.

“We believe that that contract is inimical, that contract will not inure to the benefit of Ghanaians. That contract will not benefit the ordinary Ghanaian and that contract does not meet value for money,” the lawmaker insisted.

“We are therefore calling on the Akufo-Addo and Bawumia-led government to put a halt to this lease agreement, engage further with stakeholders, and ensure that we find a long-lasting solution to the problems confronting TOR,” he added.

John Jinapor further bemoaned government's posture in ensuring that TOR becomes operational at its full capacity to meet consumer needs.

“It thus appears that they are playing with the refinery. It thus appears that there is no seriousness being shown when it comes to the revitalization of the refinery,” he added.

Background

In a significant move for Ghana’s oil industry, Tema Oil Refinery (TOR) has recently sought approval from Ghana’s Public Procurement Authority (PPA) to lease its main production assets to a company called Torentco Asset Management.

The proposal involves leasing TOR’s primary production assets to Torentco Asset Management, which would assume control of TOR’s core refining operations for a period of six (6) years.

Under this agreement, Torentco would have the authority to refine up to 8 million barrels of oil annually, paying an annual rent of $1 million.

Following some details of the proposed deal, checks have indicated that Torentco Asset Management (TAM) has no online presence, raising questions of a 'shady' deal by government.

Meanwhile, TAM will also pay $0.5 for each extra barrel if it refines more than 8 million barrels under the deal.

Policy think-tank IMANI-Africa has linked the latest lease of the Tema Oil Refinery to the former Managing Director of the refinery, Asante Berko, who was arrested and sued in the USA for criminal offences.

According to IMANI, the deal to lease the refinery for six years is full of smoke and mirrors.

Explaining how Asante Berko is linked to the deal, IMANI noted that Asanke Berko and one Michael Darko are “obscuring their roles in the lease by using a string of shell companies”

IMANI’s assessment of the deal said: “In August 2022, TOR signs term sheet to lease its assets to Decimal Capital. Decimal is owned by Mr. Asante Berko, former CEO of TOR, who resigned after being sued by the US government for bribing government officials in Ghana whilst working for Goldman Sachs. Mr. Michael Darko is a Director of Decimal.

In September 2022, “Right to enter lease agreement with TOR shifts from Decimal to Baybridge Asset Management Limited (BAML). Most likely to obscure Mr. Berko’s role and his continued use of his political links to drive the transaction.

In November 2022, “Mr. Asante Berko is arrested in the UK based on a request by the US. He is charged with corrupting Ghanaian officials in a Turkish power plant deal. He transfers his shares to Darko Investment Company owned by Mr. Michael Darko.

In January 2023, “Torentco Asset Management is set up. It is owned by Mr. Michael Darko (with Mr. George Antwi as Director). TOR shifts the relationship from Baybridge to Torentco for the same leasing deal.

“None of these entities have any track record,” the think tank’s assessment detailed.

The details of the deal have been opposed by many analysts and experts who believe that leasing the refinery at $22 million is a “bad deal.



SSD/MA