Skip to main content

PIAC calls for action against Oranto/Stone Energy

By: Fred Yaw Sarpong-Daily Express

The Public Interest and Accountability Committee (PIAC) has called for action against the Oranto/Stone Energy for failing to pay the outstanding surface rental invoice to the government. 

In addition, the committee also asked GRA to charge the company with penalty for default as specified in Section 3 (4) of the Petroleum Revenue Management Act (PRMA).

This was part of the recommendations made by the committee in the 2014 PIAC Report on Management of Petroleum Revenues which was launched recently in Accra.

Even though the PIAC report did not specified the amount Oranto/Stone Energy supposed to pay to the government as the outstanding surface rental invoice, the committee said it is important GRA will enforce the company to pay any amount due the state with penalty.

The committee also asked Ministry/Minister of Finance (MoF), Bank of Ghana (BoG) and the Investment Advisory Committee (IAC) to work together to establish some guidelines for interest to be earned on any unutilized funds be it on the balances of Annual Budget Funding Amount (ABFA) or those set aside for specific purposes.

“This will help to forestall the recurrence of the situation experienced in 2014 whereby US$222.93 million (GHc666.06 million) remained in the Consolidated Fund through the year,” the report noted.

According to PIAC, section 23 (4) should be amended to allow any excess funds over the cap to remain in the Ghana Stabilization Fund (GSF) until such a time that debt repayments are to be made before being transferred into the Debt Service Account (DSA).

It also recommended that the Ghana National Petroleum Corporation (GNPC) must publish the returns earned on the unutilized cash-in-hand of US$187.22 million, which GNPC said it was invested in anticipation of pipeline projects.

“In order to facilitate easy reconciliation and authentication of payments and disbursements of the ABFA to various priority areas, the exchange rate(s) used to convert the amounts into cedis should be published by MoF in the Annual and Reconciliation Reports on the Petroleum Funds,” PIAC recommended.

The committee asked for a critical appraisal of the viability of the continuous operation of the Saltpond field against the backdrop of low crude oil price. “With crude oil price projected to hover around US$52 in 2015, the business case for operating the Saltpond field in 2015 has been further weakened considering that fact the oilfield produced a barrel of crude oil at a costs US$31.22 in 2014,” the report stated.  


Popular posts from this blog

PIAC told to go to court to enforce recommendations

By: Fred Yaw Sarpong

The Public Interest and Accountability Committee (PIAC), the mandated body to monitor the use of Ghana’s oil revenues has been asked to go to court to seek strict compliance of the laws covering accountability of oil funds in the country.

According to Dr. Steve Manteaw, the Campaign Coordinator for ISODEC and a member of the PIAC , it’s time for PIAC as a body to consider going to court to compel institutions responsible for managing Ghana’s oil revenue to answers some questions concerning the expenditure of oil funds.

He pointed out that there are several recommendations made by the PIAC in its past reports on management of petroleum revenues, and a lot of these recommendations has received no positive response from the institutions concerned.

He disclosed this to the Daily Express at a three-day workshop on Interrogating the 2016 Semi Annual PIAC Report at Koforidua in the Eastern Region.

The workshop was organized by the Institute of Financ…

BoG shuts down two financial institutions

The Bank of Ghana has closed down two financial institutions in the country. This was after the central bank investigation revealed that the two companies were operating without approval.

The two companies were Agro Development Fund Services Limited (ADFSL) and Hebron Financial Investment Limited (HFIL).

The Daily Express gathered that the ADFSL was asked to stop operating after the central bank realized the institution had not been licensed to take deposit from the public.

A statement from BoG said the ADFSL continued to operate despite the orders from the Bank of Ghana. It however closed down ADFSL’s operation until further notice.

The Bank of Ghana said that the ADFSL is located at Asufufu, opposite the Sunyani Traditional Council in the Brong Ahafo region.

“The decision to close down ADFSL is in furtherance of section 20(2) (g) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930). Bank of Ghana has investigated ADFSL thoroughly and has concluded that its a…

Graphic Communication Group staffs petition GJA Election Dispute Adjudication Committee

Some staffs of the Graphic Communications Group have petition the Election Dispute Adjudication Committee of the Ghana Journalists Association (GJA) concerning their grievances covering issues affecting the association.
The staffs of the company seeks some clarification on the mandate of the current executives of the association.

Dear Sir,
We the undersigned write to place before you our grievances covering issues affecting the Ghana Journalist Association, and we hasten to add that our grievances are placed before you in furtherance of our constitutional duty under Article 11 (e) of the 2004 Constitution of the Ghana Journalists Association.
We first of all seek clarification on the mandate of the current executives of the Association to be in office and take decisions to affect the wellbeing and welfare of the Associ…