The Ministry of Energy has debunked claims suggesting that the sector minister Dr Matthew Opoku Prempeh, has failed to provide the necessary leadership in finding a strategic partner for the Tema Oil Refinery (TOR).
The Institute of Energy Security (IES), which made the allegations last week, petitioned the president to intervene to save TOR from imminent collapse urgently.
“While the price for a gallon of diesel draws closer to GH¢60, IES wishes to put President Nana Akufo-Addo on notice that TOR is still in coma, requiring his urgent intervention to save the state facility that is saddled with over GH¢400million debt from total collapse.
“Unfortunately, the Energy Minister, Dr Matthew Opoku Prempeh sits clueless, failing to provide a single strategic option to lift TOR out of its present condition while clamouring towards another refinery,” IES said.
But, a statement issued by the energy ministry said the allegation against the minister is baseless, setting out various events at TOR involving the minister in chronological detail.
It said on 11 March 2021, four days after assuming office as Energy Minister, Dr. Prempeh undertook a working visit of TOR to familiarise himself with the situation on the ground.
The release explained that in meetings with the Interim Management Committee (IMC), board, management and worker unions, Dr. Prempeh has always indicated the president’s keen interest in the revitalisation of the refinery, creating jobs and positioning itself as a market leader on the African continent by seeking a strategic partner for the refinery.
Again, on 15 June 2021, Dr. Prempeh swore-in a three- member Interim Management Committee (IMC) whose terms of reference were to ensure the smooth transfer from the previous directors, undertake technical and human resource audits as well as receive and assess viable partnerships for TOR.
As part of its handing over notes, the IMC made recommendations to the incoming board regarding a strategic partner and sought the necessary approvals from the Public Procurement Authority (PPA).
In February and March 2022, a new Managing Director and board took office respectively, with a clear mandate to work towards securing a strategic partner for the revamping of the refinery.
The minister subsequently wrote to request an evaluation of all the processes involving interested parties and submit the same for the attention of an inter-ministerial committee including the Ministry of Energy, Ministry of Finance, Ministry of Public Enterprise, State Interests and Governance Authority (SIGA) and TOR. This was to enable the committee to make the necessary recommendations to the president.
On 20 May 2022, the government granted approval to TOR to begin negotiations with a strategic partner.
After this, on 10 June 2022, the minister wrote to the Managing Director of TOR to provide guidelines and advice as the refinery prepares, together with its prospective transactional advisor, to enter into negotiations with a strategic partner.
Among others, the statement said the minister directed further that TOR’s indebtedness and workers’ pension funds must be included in the negotiations with the strategic partner.
In the said letter, the minister emphasised that whatever agreement that may be reached between the refinery and the strategic partner is not final until it has been subjected to further scrutiny by the Ministry of Energy and the Office of the President.
The ministry believes that Dr. Matthew Opoku Prempeh has demonstrated clear leadership, vision and focus in working towards revamping TOR and that the claims made by IES are borne either out of ignorance or a deliberate attempt to tarnish the minister’s image.
The ministry further noted that given the weight likely to be accorded the IES’s comments, it was important for the organisation to be circumspect in its public pronouncements and ensure fidelity to facts before going public.
“The ministry wishes to assure Ghanaians that Dr. Prempeh is resolutely committed to ensuring that TOR is put on a sound footing to support Ghana’s industrialisation drive, and will continue to provide strategic leadership and direction in this regard” the release concluded.