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New govt must follow roadmap to settle VRA debt- GNPC CEO

  • SOURCE: | qwesa2big
  • mr-alexander-mouldThe Chief Executive Officer of the Ghana National Petroleum Corporation(GNPC), Alex Mould has charged the new government to ensure that money owed by the Volta River Authority (VRA) is retrieved as soon as possible. “Government of Ghana has to do what they have to do. They have to ensure that SOE,ECG and the power sector abide by the rules of engagement that we have all agreed on and that all the revenue should be put in the collection account and everybody that generates part of that megawatts that generated that revenue should be paid for its amount, its very simple.” he said. He argued that this will prevent the frequent misplacement of revenue and also avoid more debt in the power sector. The Ministry of Finance, the Bank of Ghana (BoG), and the Ghana Bankers Association last year announced a roadmap aimed at clearing the VRA’s debt of GHS4.4 billion, owned to banks alone, after an initial payment of GHS250 million. A second payment was made in September last year. Mr. Mould charged the new government must ensure revenue accrued from the power sector is put in the right account to enable it clear the debts per the road. “That was what was agreed[at the transition team] and that is what they have to do.” Mr. Mould further debunks claims that GNPC can possibly help retrieve the money owed by VRA. “GNPC is neither at the table of negotiating nor at the table of deciding how this works. It should be done as quickly as possible.” He stated that it is imperative for the new minister when he assumes office to endeavor to ensure that the debt is fully settled. “We have had conversations with the transition team. We have explained to them our position and we do hope that when the minister comes into power fully, when GNPC gets our board all of these things can be done properly.” PIAC appeals to GNPC to get debt settled Meanwhile, the Public Interest and Accountability Committee(PIAC) has blamed the VRA’s  high debt owed to Ghana Gas as major contributor in the poor financial performance of the GNPC for the first half of 2016. In its Semi Annual Report on Management of Petroleum Revenue, PIAC pointed out that the amount of money allocated to GNPC from total petroleum receipts of US$22.77million was not enough to cover the Jubilee financing cost of US$29.51 million dollars thereby compelling GNPC to fall on its accumulated funds that had been earmarked for other projects. Revenue from Ghana Gas According to the report, revenues from gas exports to Ghana Gas could have played a key role in minimizing the effects of the revenue shortfall if gas supplied to Ghana Gas totaling US$28.7 million had been fully paid for. It lamented that only 9.30 million dollars representing 32% of the invoiced amount was paid by Ghana Gas leaving an outstanding half year unpaid balance of US$19.4 million. This makes the debt when added to the balance carried over from 2015 of US$78.50 million, to reach US$97.9 million. As part of it recommendation PIAC charged Ministries of Finance, and Energy to prevail on the VRA to settle its indebtedness to the Ghana Gas.


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