GNPC’s financial viability in jeopardy due to govt’s $1bn debt – PIAC

The Public Interest and Accountability Committee (PIAC) is raising concerns over the financial viability of the Ghana National Petroleum Corporation (GNPC) should it be weaned off cash allocations from the Petroleum Holding Fund by 2026 per the Petroleum Revenue Management Act.

PIAC asserts that GNPC is being “laboured” as the government and its agencies owe the corporation close to $1 billion.

Technical Manager at PIAC, Mark Agyemang, speaking on the topic ‘Highlights of PIAC Issue Paper II’ on Time with PIAC, indicated that these burdens on GNPC are causing financial “headaches” for the corporation.

“The government is responsible for the development of the country. These state-owned enterprises can come in through corporate social responsibility or investment, as you may want to call it. We have instances, which we have documented extensively, where the government will ask GNPC to pre-finance or give guaranties or give loans to other state-owned enterprises.

“We have the case of VRA, we have the Karpowership, we have ECG, we have the western corridor road enclaves, and we have the Tema Oil Refinery, where currently, as we speak, GNPC is owed almost to the tune of a billion dollars. And the state is supposed to pay them but it is the same state that is funding them. You see the dichotomy here. It is an issue and that actually causes financial headaches to the corporation.”

Mark Agyemang is thus advocating for a review of P.N.D.C.L 64, the law establishing GNPC for the national oil company to be able to assert its financial independence.

“If the governance structure of GNPC is diversified enough where all appointees are not from the government, we will have independent bodies also making appointments to the governance board of GNPC, they can be in the position to say no to some of these government demands.”