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The Ghana National Petroleum Corporation (GNPC) has described as completely inaccurate reports by the media that it does not render account to the State for oil revenues among others.
Reacting to the allegations in a press release issued by its Corporation Affairs Departments recently GNPC said it accounted to Parliament for its annual budget allocations from the Jubilee Oilfield revenue through the Ministry of Energy and Ministry of Finance and Economic Planning as required by the Petroleum Revenue Management Act,2011 (Act 815).
It recalled that Parliament in 2011 allocated US$207.96 million representing 47 percent of the country’s Petroleum Revenues to neither it nor its operations.
“US$132,484,815 (or 63.7 percent) went to repay part of the Jubilee partners to pay for our US$165.8 million share of field development costs incurred since 2008.
US$30,315,185 FOR 14.6 percent) went towards the acquisition processing and interpretation of 2,612km of 3D Seismic Data for the Southwest Deep 2008.
“US $28,119,624 (or 14.6 percent) was used in fabrication and installation of 14kilometres of deep water pipeline as part the Natural Gas Infrastructure Project;
US$7,661475(or 3.7 percent) went to staff costs while US$9,383,204 (or 4.5 percent) went towards general operational and administrative expenditure.”
It added that such receipts and expenditures were captured in detail in its 2011 financial statements currently undergoing external audit.
“ our 2011 external audit is behind schedule because it took us some time to work through some of the accounting policy impacts of the 2011 Petroleum Revenue Management Act- and not because we are reluctant to account for these monies , Once the audit is concluded we will circulate our accounts as required by law”.
It added the GNPC was audited by the Auditor-General every b year and that its audited accounts were submitted to all relevant government agencies including the Ghana Revenue Authority (GRA ) in accordance with Article 187 of the Constitution and Section 12 of the Ghana National Petroleum Law, 1983( PNDC Law 64).
“It is completely incorrect to allege the GNPC withholds revenue from government . This reflects misunderstanding of the workings of the PRMA,” it indicated.
The practice has been that GNPC does not directly retain any revenues from the participating interest in Jubilee production.
Rather GNPC does not directly retain any revenues from the participating interest in Jubilee production.
Rather , GNPC hands over 100 percent of the gross revenues to the State.
“ The state then cedes such funds as Parliament considers necessary to cover GNPC hands over 100 percent of the gross revenues to the state.”
“The State then cedes such funds as Parliamentary considers necessary to cover GNPC’s share of development and production costs, annual administrative costs and its long-term capital needs”
In additional to the foregoing, it said GNPC has no discretion over dividend payments all the revenues were fully under State control.
“ The ceded funds are not subject to dividend payments because this would mean the GNPC would not have the resources required to execute projects Parliament and the Executive would have approved.”
The Ghanaian Observer
