Public Interest & Accountability
Committee

Status of Implementation of Previous Recommendations

Finding Recommendation Responsibility Status Comments
1. Investment of the Ghana Petroleum Funds(Refer to 2012 PIAC Annual Report)
The investment of the GPFs has not as yet yielded high returns, which is of great concern to the PIAC since a continuation of this trend is likely to slow the growth of the Funds, especially the GHF. The Government must release the Policy and Guidelines to assist the Fund Managers to better manage these funds as required by the PRMA, 2011. Investment Advisory Committee & Ministry of Finance Recommendation is yet to be fully implemented The PIAC in its 2013 Semi-Annual Report urged the MoF and the IAC to expedite action on this recommendation. The Minister acknowledged this fact (of low returns on investment) in the 2014 Budget but very little appears to have done about it.
2. Enactment of Regulations (Refer to 2012 PIAC Annual Report)
After three years of the coming into force of Act 815, the regulations that will help with the implementation of the law are long overdue. The PIAC calls for expedited action to be taken to complete the drafting of the regulations for the approval of Parliament. Ministry of Finance The regulations are now being developed. The process towards the development of the Regulations has resumed following its suspension during the amendment of the PRMA.
3. Legislation on funding for the PIAC (Refer to 2011 PIAC Annual Report)
There is no provision in Act 815 for the funding of the PIAC and the Petroleum Commission. A section of the Act must be introduced to cater for the funding of the PIAC and the Petroleum Commission to enable them carry out their respective mandates. Ministry of Finance Section 57 of the PRMA amended and provides for the Committees budget to be taken directly from the ABFA Government must ensure prompt and timely release of the PIAC budgetary allocation upon request
4. SOPCL Reporting (Refer to 2012 PIAC Semi-Annual Report)
SOPCL has not been reporting transactions in the right format as is being done by the Jubilee partners The quantity of crude oil lifted from the Saltpond fields and their sales price should be provided in the public reports in the right format to facilitate monitoring of petroleum receipts Saltpond Offshore Producing Co. Ltd (SOPCL) SOPCL submitted a copy of its Unaudited account for 2013, 2014 and the first half of 2015 to PIAC which provided information on liftings and sales prices, among other things. There are still some discrepancies in the figure produced by SOPCL vis-à-vis those provided by the MoF and GNPC.Further clarification is being sought.
5. Determination of Benchmark Revenues (Key Finding 5 of 2013 Annual Report)
Actual petroleum revenue exceeded projected revenues by nearly 46%. This raises further questions about the determination of the Benchmark Revenue. The MoF and other stakeholders should be supported and encouraged to attain higher accuracy in price forecasting. Also closer attention must be paid to the assumptions that go into the determination of the Benchmark Revenue. MoF/GRA/BOG Section 17 of the PRMA has been amended to allow the Minister of Finance to vary the Benchmark revenue as and when necessary within any financial year.
6. Allocation of ABFA (Key Finding 14 of 2013 Annual Report)
The Capacity Building priority area appears to be a category under which certain expenditure items which may not be related to capacity building have been classified. The government should endeavour to focus its expenditure under the capacity building priority area on interventions that will directly enhance the capacity and capabilities of Ghanaians to play a bigger role in the emerging oil and gas industry MoF There was no expenditure in this priority area because the only project – SME Projects Incubation Facility – earmarked for implementation in 2014 at an estimated cost of GH¢59.57 million (US$27.08 million) was not started due to the non-disbursement of the CDB component. The decision to focus on one project in 2014 is commendable even though the project never got started.
7. Allocation of ABFA (Key Finding 15 of the 2013 -Annual Report)
An amount of GH¢72.55 million was reported to have been paid to the GNGC. However, the GNGC said they did not receive the said amount. Another GH¢13.27 million could not be linked directly to any project. The MoF should provide details of how an amount of GH¢85.82 million (made up of GHC72.55 million and GHC13.27 million) allocated to the ‘expenditure and amortisation of loans for oil and gas infrastructure’ priority area from the 2013 ABFA was utilised MoF The MoF has explained that no payment was made to the GNGC in 2013 contrary to what had been reported in 2013 and that the entire GH¢137.02 million allocated to the Amortisation Priority areas was disbursed as matching fund for the CDB facility. The wrong description of the projects in the initial list of the projects given to PIAC was consequently corrected in the 2014 Reconciliation Report. PIAC is satisfied with the explanation given but urges the MoF to ensure that information released to Committee is accurate and devoid of errors.
8. Ghana Petroleum Funds (Refer to 2013 Semi-Annual Report)
There are discrepancies in the figures reported by the Bank of Ghana and the Ministry of Finance (MoF) on the Ghana Petroleum Funds. There is the need for reconciliation by the Ministry of Finance and the Bank of Ghana to ensure that the difference in the Ghana Petroleum Funds is accounted for in the ensuing period. MoF/BOG The end of year figures from the reports of the two organisations is in agreement. No further comments

 

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