The Public Interest and Accountability Committee (PIAC) has expressed concern over the financial stability of the Ghana National Petroleum Corporation (GNPC), cautioning that the corporation’s viability could be in jeopardy if it is cut off from cash allocations from the Petroleum Holding Fund by 2026, as stipulated by the Petroleum Revenue Management Act.
PIAC highlighted that GNPC is currently weighed down by nearly $1 billion in outstanding debts owed by the government and its agencies.
During the ‘Time with PIAC’ program, PIAC’s Technical Manager, Mark Agyemang, stressed that these financial liabilities are posing significant challenges to GNPC’s operations.
“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 therefore calling for a review of P.N.D.C.L 64, the law that established GNPC, to enable the national oil company to secure 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.”
