Edwin Provencal, BOST Managing Director
The Bulk Oil Storage and Transportation Company (BOST) has responded to the 2021 Auditor General’s Report concerning the company’s payment of monies to some organisations.
In a release, the company indicated that in the case of Generation Investment Co. Ltd (GIC), BOST commenced negotiations to acquire 16 acres of land from GIC for the development of Natural Gas Infrastructure at the cost of US$11,200,000.00 in 2014.
It said in June 2016 the parties agreed on a settlement payment plan; a three-tranche payment option with no specific dates or deadlines for the installment payments indicated.
“Total payments made in respect of the land stood at US$5,360,000.00 as at December 2016. Due to cash flow difficulties suffered by BOST, it could not meet its payment obligations in the manner in which it initially envisaged after making payment of almost fifty percent of the cost of the land,” it said.
It indicated that after several negotiations BOST has made full payment of its obligation as at January 1, 2022, and “we are in the process of getting the land transfer to BOST to use the land for the LPG project.”
In the Hask Oil Company issue, the management of BOST said in July 2013, Hask Oil delivered petroleum products in BOST’s storage tanks after which it engaged Ernst & Young as external auditors to investigate and validate all BDC claims which resulted in a stock balances in favour of Hask Oil to which it agreed was 34,143 litres of gasoline and 1,341,571 litres of gasoil.
“On May 4, 2016, BOST released 74,824 litres of gas oil valued at GH¢109,886.15 as well as 2,350,225.42 litres of gasoline valued at GH¢3,755,648.47 to Hask at the prevailing value at the date of release. As far as BOST was concerned, the volumes of products were fully refunded to Hask Oil to cushion them against any shortfalls, and it owed it no further obligation,” it stated.
However, a judgment dated 21st October 2019, the High Court found in favour of Hask and granted it all the reliefs as endorsed on its writ.
“Management has taken appropriate action by sanctioning the legal officer who was not present in court and had the appeal cancelled in favor of HASK Oil. The employee who was in charge of operation (B F Arthur) during the period was terminated,” it added.
In the case of West African Petroleum Company Ltd. (WAPCO), BOST received a demand notice from WAPCO dated March 19, 2015, to the effect that it was owed US$300,000.00 for the rental of storage tanks made in November 2008.
It, however, noted that records available indicated that WAPCO also owed BOST some amount of money and therefore the reconciled sum due WAPCO was US$255,423.92.
BOST said it paid the amount to WAPCO on July 12, 2016, however, due to a delay in payment, a subsequent demand was received from WAPCO demanding a balance in interest which was agreed by both parties at 10% instead of the 12% WAPCO adopted by the Court as a consent judgment and settled all obligations to WAPCO.