BOST welcomes investigations into irregularities

• Posted on July 17, 2018
• by Ellsamwise King
• Comment

The Management of the Bulk Oil Storage and Transportation (BOST) Company Limited, says it welcomes investigations into alleged smuggling and illegal activities at the company.

This follows a petition by Pressure group, OccupyGhana (OG) on Monday, July 16 urging the Chief of Staff Frema Opare, to investigate circumstances that led to alleged smuggling of petroleum products, re-exporting, premix dumping, unlawful profiteering, tax evasion and financial reporting inconsistencies at the BOST Company Limited.

Reacting to the OcupyGhana’s petition, the Managing Director of BOST, George Mensah Okley, in a statement said: “The attention of the management has been brought to a publication relating to a letter written by the pressure group, Occupy Ghana to the Chief of Staff, Akosua Frema Osei-Opare asking for investigations into alleged activities of smuggling and illegal dealings raised by the Chamber of Bulk Oil Distribution (CBOD).

“While we are yet to be served with a copy of the said letter we wish to state that management has seriously taken note of the concerns of OccupyGhana as noted in the various media publications. We wish to assure the general public that the current management considers it a priority to radically restructure our business to make it more transparent and accountable. BOST is currently in the process of implementing more effective corporate governance measures aimed at ensuring that management is better placed to deal with the current challenges that the industry is bedeviled with.”

The statement added: “As part of the ongoing transformation, we wish to emphasize that management is committed to ensuring that all investigations and audit relating to the alleged irregularities will be conducted in the most open and transparent manner.

“We welcome suggestions and concerns of all well-meaning public-spirited Ghanaian on how best to improve our business for the betterment of the nation.”

Background

Pressure group, OccupyGhana (OG), has petitioned Chief of Staff Frema Opare, to investigate circumstances that led to the alleged smuggling of petroleum products, re-exporting, premix dumping, unlawful profiteering, tax evasion and financial reporting inconsistencies at the Bulk Oil Storage and Transportation (BOST) Company Limited.

A statement signed by Kwaku Segbefia on Monday, 16 July, said: “OccupyGhana® has received and studied the 2017 industry report of the Ghana Chamber of Bulk Oil Distributors (CBOD). The report, which we believe has been submitted to the Offices of the President and Vice-President as well as Parliament alleges over a dozen infractions and breaches of the law by, and indicts unnamed officials of National Security, the Ghana Revenue Authority (GRA) and the Office of the President.

“We note with concern the alleged revenue losses amounting to GHS 1.4 billion in the loss of over 800-thousand metric tonnes of subsidized fuel. If true, this is completely unacceptable. Also worrying is the allegation that about GHS 5.2 million was lost to the National Petroleum Authority (NPA) from diversions of 230 illegitimately subsidized premix trucks.”

The statement added: “The CBOD alleges losses due to increased smuggling activities along our coasts, under-invoicing, illegal tax, and regulatory margins, ESLA under-reporting, Special Petroleum Tax (SPT) transfer pricing, deliberate inefficiencies and illegalities at BOST, unlawful profiteering, tax evasion and export dumping. But what we find even more troubling is the claim that these are happening with the connivance and complicity of officials in the Office of the President, in National Security, and in GRA.

“In the interest of the principles of probity, accountability, and transparency, we write to request that full-scale criminal and highly forensic investigations are conducted into the alleged findings in the CBOD Report. If any persons are found to have engaged in these acts we would urge the prosecution of all criminally culpable elements within the petroleum value chain to the full extent permissible by law, no matter who these culpable elements may be.”

The statement was also copied to the office of the Vice-President, the National Petroleum Authority (NPA), The Speaker of Parliament and the Ministry of Energy.