- NDC Claim:
The issue of contaminated products has been swept under the carpet
BOST response:
- National Security and BNI investigated the allegations and reported their findings.
- The Minister of Energy also constituted a committee made up of representatives from National Security and NPA to investigate the allegations and reported their findings to the Minister
- BOST further constituted a committee, which was made up of key industry players to investigate the issue. This committee also submitted a report to the company.
- NDC Claim
BOST sold 5 million litres of contaminated products to unlicensed companies
BOST response:
- The then MD of the company relied on the established practice for the disposal of the contaminated product. Prior to 2017, a total of 38 companies including the local union of BOST were allowed to buy contaminated products from BOST. It is on record that these companies were not licensed for that purpose.
- In fact, the regulator of the petroleum downstream confirmed that there was no license category for dealing in contaminated products.
- On the subject of the volume of “contaminated products” sold by the company, it must be established that only 471, 000 litres of such products was sold to one entity. The remainder was sent to TOR for correction.
- NDC Claim:
BOST was so efficiently managed under the leadership of John Mahama
BOST response:
As of January 2017, the state of BOST as company was as follows:
- A trade debt of $624 million dollars
- Legacy debts of GHS 273 million
- 2 years operations with unaudited financial statements (2015-2016)
- Non-operational marine assets
- Non-operational petroleum pipelines resulting in 100% reliance on BRVs for products haulage
- $10 million of BOST finances locked up in TOR debt through Sahara oil among others
The question then is, “Is this the efficiency being referred to?”
From January 2017 to date, the following are the interventions by the management of BOST and the government of Ghana in mitigating the poor state of the company
- $624 million dollar debt paid down to $57 million dollars as at January 2020.
- Settlement of the entire GHS273 million legacy debt
- Revamping of BOST’s marine facilities. Two barges and tug boat have been refurbished and operational and currently generating revenue for the company
- Both of the company’s major pipelines, from Tema to Akosombo as well as from Buipe to Bolgatanga are currently being refurbished and are expected to be operational in the third quarter of 2020
- NDC Claim:
They reduced the BOST Margin from GHp 10 per litre to GHp 3 pesewas per litre in 2015.
BOST response: It must be stated with emphasis that the BOST Margin has not been 10 pesewas per litre. Infact, it was 2.25 pesewas per litre and was increased to 3 pesewas per litre in January 2011.
- NDC Claim:
At the time of exiting office, NDC bequeathed 200,000MT of refined products valued at GHS 1 billion and 2 million barrels of crude ( 1 million from TEN and 1 million barrels of Qua-Iboe) valued at over US$ 100million.
BOST response
As of January 2017, 15 out of BOST’s 51 storage tanks had been decommissioned. The total capacity of the remaining 36 tanks was 180,000MT.
It is therefore logically impossible for 200,000MT of products to be stored in tanks with total capacity of 180,000MT. this allegation should be treated with utmost contempt.
