Public Interest & Accountability
Committee

Status of Implementation of Previous Recommendations

Finding Recommendation Responsibility Status Comments
12. Non-Payment of Surface Rental by Oranto/Stone Energy (Finding 13 of 2014 Annual Report)
Oranto/Stone Energy yet to honour an outstanding surface rental invoice of US$67,438.36 since February 2013 GRA to compel Oranto/Stone Energy to pay outstanding invoice with applicable penalties for the period during which they have been in default. GRA Invoice still outstanding as at December 2015 GRA reports that the owner of the block cannot be traced so the invoice beginning to look like a bad debt. Meanwhile, the unpaid invoice has attracted penalties of up to US$3.46 million by December 2015.
13. Utilization of ABFA (See Key Conclusion Section in 2014 Annual Report)
ABFA allocation spread too thinly thereby making it less impactful Urgent need for the ABFA to be better-targeted and well-focused so as to help maximize its effectiveness and impact in the socio-economic development of Ghana hence a call for a national dialogue/debate on how best the nation could derive the most benefits from its hydrocarbon resources. MoF Not very much has been done and ABFA continues to be allocated to several projects and in several sectors of the economy in 2015 contrary to the spirit and letter of the PRMA It is very important that a proper evaluation of the ABFA funded projects is carried out as soon as possible to inform the prioritisation of the ABFA funding for the next 3 years resources.
14. Investment of Unutilised ABFA Funds (See Finding 24 of 2014 Annual Report)
Fifty-five percent (55%) of total ABFA allocation in 2014 was not utilised. This money remained in the ABFA account until it was eventually swept by the BOG at the end of 2015 Guidelines must be developed to ensure that interest is earned on any unutilised funds be it on the balances of ABFA or those set aside for specific purposes in any financial year. MoF, BOG and IAC No action has been taken as yet
15. Refunding of Swept ABFA and Sinking Funds (Refer to Recommendation 1 of 2015 Semi-Annual Report)
Swept unutilised ABFA amount of US$222.93 million yet to be refunded. Immediate refund of swept unutilised ABFA amount as well as 70% of Sinking Fund since this is a violation of Act 815, MoF, BOG Amount yet to be refunded Drafters of the PRMA regulations are pushing for the ABFA to be treated as Statutory Funds, which are generally ‘insulated’ from BOG sweeping.
16. Refund of US$50 million Special Advance (Finding 28 of 2014 Annual Report)
Fifty Million dollar (US$50 million) advance by GNPC to the MoF remains unpaid Government must endeavour to pay the US$50 million special advance given to it by GNPC in 2014 to help improve the capitalisation of the State Oil Company as well as forestall a situation where it becomes a regular practice by the GOG to be making such demands MoF Payment still outstanding even though GNPC has been pursuing the MoF to pay.
17. Non-Payment of Receipts from the Sale of Wet and Lean Gas to GNGC and VRA respectively (See 2015 Semi-Annual Report
VRA indebted to GNGC to the tune of US$103.03 in respect of lean gas supplied by GNGC while GNGC’s indebtedness to GNPC in respect of gas exports stood at US32.60 million All outstanding receivables in respect of lean gas sold should be paid as a matter of urgency so as to guard against the GNGC falling into the never-ending cycle of indebtedness prevalent in the power sector. GNGC must also ensure prompt payment to GNPC in respect of gas exports. GNPC, GNGC and VRA Very little done. VRA’s indebtedness to GNGC had increased by over 100% between June and December 2015 from US$103.03 to US$227.78 with GNGC’s debts owed GNPC increasing by a similar magnitude (from US$32.60 million to US$79.06 million) over the same period. Only US$553,815 out of expected gas proceeds of US$79.06 (representing 0.7%) was paid into the PHF Something has to be done immediately to prevent debts owed by VRA and GNGC to GNGC and GNPC respectively from getting to unsustainable levels.
18. Using ABFA funds to build capacity in Oil and Gas Sector (Recommendation 6 of 2015 Semi-Annual Report)
Little to no capacity being built in the oil and gas sector using ABFA funds. Serious and urgent attention must be paid to the building of capacity in the oil and gas sector so as to help ensure the realisation of the local content targets set out in the Local Content Policy. MoF and GNPC The situation remains the same as the end of 2015. Only 3.25% (GH¢8.93 million) of GH¢274.97 million allocated tocapacity building from the ABFA accounts since 2011 has gone to build direct capacity in the oil and gas sector.

 

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