The General Transport, Petroleum & Chemical Workers Union (GTPCWU) of the Trades Union Congress (TUC) has bared its teeth at the government for its role in the impending collapse of the Tema Oil Refinery (TOR).
The group is livid that in spite of the potential of TOR to help the government salvage its current economic crisis, it has done nothing to help put the state-owned refinery on its feet.
“At a time of an ongoing financial distress and debt restructuring program, significant benefits of this magnitude in an essential commodity such as petroleum products should be top on the national agenda,” GTPCWU contended in a press release it issued on Tuesday.
The Union, in the press release, disclosed that while former and current workers are living as paupers, many have resigned and about 20 workers have passed on due to hardship.
The GTPCWU also debunked reports that the TOR is incapable of refining crude oil and suggested that measures be put in place to help TOR work again in order to save the economy.
“That all pending processes holding the private partnership agreement be expedited and signed as early as practicable and finally get TOR functional. In conclusion, it is our plea that the refinery will work again to save the Economy, mother Ghana, and Workers of the Tema Oil Refinery.”
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Below is the statement:
TOR, since its establishment in 1963 has been a key player in the refining of crude oil and in the provision of other critical services to the Ghanaian market players as well as other International Oil Trading Companies (IOTCs).
With TOR’s current installed capacity of 45,000 barrels a day, representing half of the domestic consumption demand of the country. The following economic benefits will accrue to augment effort of Ghana’s economic management team, if TOR is made to function at full capacity efficiently:
• 50 % of overall domestic consumption can be supplied by TOR.
• 100 % of RFO for industries
• 20% – 25% of LPG consumption
• 100% of ATK consumption
• On the average, Ghana requires about $ 4.8 billion to import petroleum products per annum. However, If TOR is producing, the forex requirement for petroleum product imports will significantly reduce by over 50%.
• A lower domestic ex-pump prices due to the removal of certain import charges like: The freight rate of about $92/Mt for petrol, $101/Mt for diesel and $83/Mt for LPG and a lower financing charges because these transaction are cedi denominated.
At a time of ongoing financial distress and debt restructuring program, significant benefits of this magnitude in essential commodity such as petroleum products should be top on the national agenda. Unless the managers of the country have no confidence in those they have appointed to manage the TOR facility.
The state is responsible and determines those who constitute the Board of Directors and the MD of TOR. Therefore all past and current operational anomalies and challenges must be borne by the appointing authority of these key critical office holders, knowing very well that all operational controls are a function of management.
CHALLENGES
Prior to the inauguration of the current MD and the BOD, the interim management committee put in place by the Minister of Energy had secured a proposal from a potential private partner with private equity that combines debt management, capitalization for retooling and continuous provision of crude oil.
The minister then tasked the current MD and the BOD to see to the full implementation of the proposal. However, over one year down the line, there has been no show. This leaves much to be desired.
The inability of the BOD and MD with all the state actors to get these all-important partnership agreement signed, has resulted in the following hardship to the Ghanaian economy and the workers of TOR.
• High prices of petroleum products at the pump
• High demand for forex to import finished products
• High cost of living
• Most pensioners of TOR have not been able to access their pension benefits.
• TOR Workers are unable to meet their domestic and social obligations resulting in children being sacked for school fees, inability to pay rent advance, and indebtedness to individual lenders and banks. It has resulted in various ailments and even the death of about 20 staff in the last 2 years. There has been a high level of frustration, depression, despondency and even suicidal thoughts.
•Workers’ Provident fund has been in arrears for years in violation of the law regulating pensions. This has resulted in untold hardship for staff.
•News and misinformation of TOR’s inability to refine Ghana’s Jubilee, TEIN, and Sankofa crude, is palpable falsehood.
•Very competent and skilled workers trained with hard-earned currency both at home and abroad are resigning and going to various companies such as MODEC., TULLOW, GHANA GAS, NPA, PETROLEUM COMMISSION just to name a few. It is funny that some of the highly trained and skilful staff are going to Refineries in a place like Afghanistan. Some have gone to Iraq, Vietnam, Saudi Arabia, Qatar, Nigeria, and U.A.E just to name a few- despite the Security implication for such staff.
THE WAY FORWARD-:
That all pending processes holding the private partnership agreement be expedited and signed as early as practicable and finally get TOR functional.
In conclusion, it is our plea that the refinery will work again to save the Economy, mother Ghana, and Workers of the Tema Oil Refinery.