Auditor-General discovers $3.4b unpaid penalties relating to Petroleum Holding Fund

The Auditor-General, Mr. Daniel Yaw Domelevo,  has discovered $ 3.4b in unpaid penalties relating to the Petroleum Holding Fund.

The latest report on the management of petroleum funds for the year ending December 2017, found that a total amount of US$220m  was outstanding.

Of the total amount, US$219 million represents amounts due from the Ghana National Gas Company Limited for gas sold to them by the Ghana National Petroleum Corporation (GNPC).

There was an additional US$1 million surface rental fees unpaid by various entities.

The estimated amount of penalties based for such delayed or nonpayment amounted to US$3.4 billion.

The Auditor-General observed that there is a loss of income which would have been earned if the funds had been paid on time and invested.

He recommended that monies due to the Petroleum Funds should be promptly collected. Any late payments should attract interest as stipulated by law.

Management in its response said that the Ghana National Gas Company Limited failed to pay the amount owed Ghana National Petroleum Corporation because the Volta River Authority (VRA) had defaulted in paying Ghana National Gas Company for gas supplied to them for the running of the thermal plants.

It said regarding the unpaid surface rental fees, Ghana Revenue Authority has been informed of the situation and Bank of Ghana was awaiting its response.