The Public Interest and Accountability Committee (PIAC) has raised concerns about the financial sustainability of the Ghana National Petroleum Corporation (GNPC) if it is cut off from cash allocations from the Petroleum Holding Fund by 2026, as outlined in the Petroleum Revenue Management Act.
According to PIAC, the GNPC is being “burdened” by debts owed by the government and its agencies, which amount to nearly $1 billion.
Speaking on the program ‘Time with PIAC,’ Mark Agyemang, Technical Manager at PIAC, discussed the key points from ‘PIAC Issue Paper II,’ highlighting that these financial obligations are creating significant strain on GNPC’s finances.
“The government is responsible for national development, and while state-owned enterprises like GNPC can contribute through corporate social responsibility or investments, there are numerous instances, which PIAC has documented, where the government has asked GNPC to pre-finance or provide guarantees and loans to other state entities.
“For example, the Volta River Authority (VRA), Karpowership, the Electricity Company of Ghana (ECG), the Western Corridor Road Enclaves, and the Tema Oil Refinery all owe GNPC. Currently, GNPC is owed nearly $1 billion by these state bodies. It’s a paradox where the same state that funds GNPC also owes it significant sums, which causes financial strain,” he noted.
Mr Agyemang further advocated for a review of P.N.D.C.L 64, the law that established GNPC, to allow the company to achieve financial independence.
“If GNPC’s governance structure is diversified, with independent bodies—rather than just government appointees—participating in board appointments, GNPC would be in a stronger position to reject some of these financial demands from the government,” he suggested.
Source: Adomonline
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