Mahama jabs gov’t over $100m petroleum receipts

• Posted on October 4, 2022October 4, 2022
• by Nana Kwesi Coomson
• Comment

Former President John Dramani Mahama has criticised the government for using $100 million petroleum receipts to offset a loan taken up by the Ghana National Petroleum Company (GNPC).

According to him, the action by the Finance Ministry is an illegality, insisting that “there can be no justification for diverting revenues accruing from the nation’s share of petroleum resources into any other account aside the Petroleum Holding Fund (PHF).”

According to him, the use of the $100 million petroleum receipts accrued to Ghana in the first quarter of this year to settle upfront a loan taken from the Finance Ministry by a subsidiary of the Ghana National Petroleum Company (GNPC), to acquire a 7% stake in the TEN and Jubilee oil fields on behalf of the state, was illegal.

The NDC Minority in Parliament, led by John Abdulai Jinapor, first raised the issue, claiming that the $100 million had gone missing.

The caucus argued that the transfer of the said money required parliamentary approval, and it therefore “amounts to a gross violation of the Petroleum Revenue Management Act, 2011 (Act 815) and Public Financial Management Act (Act 921).”

Explanation

Shortly after the NDC MPs had fired shots at the government, the Chairman of the Mines and Energy Committee in Parliament, Samuel Atta Akyea, responded to the allegation and explained that the money was used by the Finance Ministry to settle a loan taken by the GNPC from the ministry to acquire a 7% stake in the TEN and Jubilee oil fields on behalf of the state.

According to him, even though it could be that administrative processes were not followed through, in terms of lodging of the money, no harm was done to the country by the upfront payment of the loan.

“Well, I think it’s a storm in a teacup because sometimes the impression is being given that the money has been spirited away.

“There was an opinion from the Attorney General to the effect that they needn’t place the money in that account for the simple reason that there’s a 7% equity acquisition in the TEN and Jubilee fields by GNPC subsidiary and they didn’t have the money so the Ministry of Finance loaned them the money to do this acquisition,” he elucidated.

Mr. Atta Akyea said the GNPC was trying to improve the governmental stakes in these petroleum blocks, pointing out, “And if the money was not so lodged in the PHF, but it is shown that, indeed, the shares have been acquired, and the shares have been paid for, how can that be anything to undermine this country, financially?”

Mahama Salvoes

However, ex-President Mahama insists that action is unlawful, calling on the Minister of Finance, Ken Ofori-Atta, to urgently return the amount into the PHF without delay, insisting that “there is no record to confirm parliamentary approval on any such loans acquired by GNPC in its work programme.”

In a post on his Facebook wall, he wrote, “News that some $100 million has been diverted from petroleum funds for unapproved expenditure is most disconcerting.”

“Section 3 of the PRMA (Act 815) is explicit that all petroleum revenue due the Republic derived from whatever source shall be assessed, collected and accounted for by the Ghana Revenue Authority,” he quoted.

Mr. Mahama continued, “Section (15) of the Petroleum Exploration and Production Act (Act 919), is also clear that “Any borrowing exceeding the cedi equivalent of thirty million United States Dollars for the purpose of exploration, development and production shall be approved by Parliament and shall be in consonance with the Petroleum Revenue Management Act.”

“The Minister for Finance must as a matter of urgency repatriate all such illegal payments back into the PHF without delay as there is no record to confirm parliamentary approval on any such loans acquired by GNPC in their work programme,” he concluded.

By Ernest Kofi Adu