GNPC’s CSR must be pursued with ethical consideration – IES

The Institute for Energy Security (IES) has called on the Economic and Organized Crime Office (EOCO) to immediately investigate the Ghana National Petroleum Corporation (GNPC).

IES fears GNPC may veer off its core mandate if it continues with its current expenditure trends.

“GNPC’s corporate pursuit of social goals must be pursued with ethical considerations. The Board must, therefore, ensure that the corporation takes up initiatives that protect its reputation and position the “Brand GNPC” to become the Operator Ghanaians so much desire.” The statement read.

The Institutes call comes on the back of emerging memos from the Corporation suggesting that about GHc2 million and US$ 30,000 is being spent on brand, communication, and corporate social responsibility activities.

“The Economic and Organized Crime Office (EOCO) mandated to monitor and investigate economic and organized crime, is expected to hold institutions like the GNPC accountable. It must not therefore allow itself to be compromised in any form or shape. It is important to note that CSR and conflict of interest are not bed fellows.” It read

GNPC on Monday came under some criticism over a budgetary allocation meant for donation and sponsorship of some public functions and activities.

Although the Corporation has justified the budget, saying those expenditures are in line with their vision, IES, ACEP, PIAC, and other organizations are against it.

Read full statement below:

5^th November, 2019

GNPC’s CORPORATE SOCIAL RESPONSIBILITY (CSR) MUST BE PURSUED WITH ETHICAL CONSIDERATIONS

1. In the current approval from the Board of Ghana National Petroleum Corporation (GNPC) to the Chief Executive Officer (CEO) of the entity, you see a clear drift from the strategic path the company has set for itself and pursued over the years as an anchor of its Corporate Social Responsibility (CSR).
2. The understanding is that the Corporation had adopted a more definitive approach to CSR by executing fewer, yet bigger and bolder initiatives in the area of health, education, and sport development; aimed at establishing GNPC as an admired brand.
3. The Institute for Energy Security (IES) is curious in the decision of the Board, and wishes to understand the factors that are influencing the inclusion of cultural and investigative related issues in the company’s CSR activities. The Board must help clarify and justify the changes to the goal posts, knowing very well that some elements in its approvals are at odds with their own CSR policies.
4. It must be noted that political interference have not done any good to especially state owned enterprises (SoE’s) in Ghana’s energy sector, and to Ghanaians in general. If the government has any commitment to any State or Stool, it must not use the GNPC to prosecute that agenda. The GNPC must be seen to be independent when it comes to issues like CSRs, than to be used as a funding source for government’s initiatives and mandates.
5. The Economic and Organized Crime Office (EOCO) mandated to monitor and investigate economic and organized crime, is expected to hold institutions like the GNPC accountable. It must not therefore allow itself to be compromised in any form or shape. It is important to note that CSR and conflict of interest are not bed fellows.
6. GNPC’s corporate pursuit of social goals must be pursued with ethical considerations. The Board must therefore ensure that the corporation takes up initiatives that protect its reputation, and position the “Brand GNPC” to become the Operator Ghanaians so much desire.
7. The GNPC Board must differentiate good (sustainable) from bad (short-term) self interest in order to stress the genuineness of their approvals given to cultural and investigative issues.

SIGNED: Paa Kwasi Anamua Sakyi (Executive Director, IES) 

Background

An internal memo sighted by the media suggested that the Ghana National Petroleum Corporation (GNPC) had made a budget to spend about GH¢ 2 million on donations and sponsoring some public functions.

Some beneficiaries sighted in the memo were the First Lady’s Foundation, Rebecca Foundation; The Ghana Journalists Association, and the celebration of the Okyenhene’s 20th Anniversary.

The memo, dated 29th October 2019 from the Board Secretary to the Chief Executive indicated that the donations and sponsorship had been approved by the GNPC board upon a recommendation by the Brand, Communication and CSR Committee of GNPC.

Although the current budget of GNPC still comes as alarming to some organizations such as PIAC, parliament had already slashed the initial expenditure budget of the Corporation by 80 million dollars, saying that there was no justification for some of the projects captured in the 2019 budget of the firm.

This was according to the Ranking Member of the Select Committee on Energy, Adam Mutawakilu.

In 2018 alone, GNPC spent 28 million dollars on CSR which is more than the 25 million dollars it spent on salaries and 17 million dollars it spent on some operational activities.