The Ghana National Petroleum Corporation (GNPC) has vindicated Finance Minister Ken Ofori-Atta over allegations concerning some US$100.7 million in revenue from the country’s oil resources.
This was after accusations from the Minority in Parliament and claims by the Public Interest and Accountability Committee (PIAC) about mismanagement.
The Minority in Parliament is calling for the minister to be sacked.
One of the grounds on which the Minority is seeking the removal of the minister was what they said were payments of oil revenue into offshore accounts.
PIAC had indicated that the US$100.7 million should have been paid into the Petroleum Holding Fund, but the GNPC held the view that the right coffers were that of Jubilee Oil Holding Limited, a subsidiary of the corporation.
The Deputy Chief Executive (CEO) of the GNPC in charge of Commerce, Strategy and Business Development, Joseph Dadzie, who appeared before a committee constituted to probe a censure motion against Mr Ofori-Atta, said:
“As far as Jubilee Oil Holding Limited is concerned, the Finance Minister is not responsible for the revenues.”
“Obviously, we have to, at the end of the day, submit our financials and pay whatever asset tax there is to the GRA. In 2021, Jubilee Oil Holding Limited paid GH¢17 million to the GRA as tax on its operations.
“So, as far as revenue is concerned, I do not think the Finance Minister has any direct control over revenue,” he declared.
Asked if the $100 million was paid into an offshore account, Mr Dadzie said: “Yes, it was paid into an account at the Ghana International Bank in London by the buyers of the crude.”
He maintained that Jubilee Oil Holding Limited has the legal authority to receive the money.
This was after the Vice-Chairman of PIAC, Nasir Alfa Mohammed, who appeared before the same committee, claimed that the monies accrued were paid into an offshore account.
The revenue in question was accrued from lifting 944,164 barrels of oil from the Jubilee fields and Anadarko CWTP Company in the first half of 2022.
According to him, the payment of the monies in an account different from that of the Petroleum Holding Fund breached Section 6 of the Petroleum Revenue Management Act, 2011 (Act 815) and Section 7 of the Petroleum Revenue Management (Amendment) Act, 2015 (Act 893).
He explained that both acts 815 and 893 state that revenues accruing to the state from the direct or indirect participation of the state in petroleum operations shall first be paid into the Petroleum Holding Fund.
“Our consideration is that if that money does not come to the Petroleum Holding Fund, the state will be denied legitimate revenue from petroleum.”
“Our position, as a committee, is that lifting, whether lifted by 100 per cent of GNPC or not, ought to come first into the Petroleum Holding Fund from where disbursement can be made for whatever reason,” he added.
The Minority in Parliament stated the following as the basis for which Mr Ofori-Atta should be removed:
- Despicable conflict of interest ensuring that he directly benefits from Ghana’s economic woes as his companies receive commissions and other unethical contractual advantages, particularly from Ghana’s debt overhang.
- Unconstitutional withdrawals from the consolidated fund in blatant contravention of Article 178 of the 1992 constitution, supposedly for the construction of the President’s Cathedral.
- Illegal payment of oil revenues into offshore accounts in flagrant violation of Article 176 of the 1992 constitution.
- Deliberate and dishonest misreporting of economic data to Parliament.
- Fiscal recklessness, leading to the crash of the Ghana cedi, which is currently the worst-performing currency in the world.
- Alarming incompetence and frightening ineptitude, resulting in the collapse of the Ghanaian economy and an excruciating cost of living crisis.
- Gross mismanagement of the Ghanaian economy, which has occasioned untoward and unprecedented hardship.
