Kirk Coffie – CEO of VRA
Government institutions owed Ghana National Gas Company (GNGC) to the tune of $340.49 million as at June 30, 2016, with the Volta River Authority (VRA) owing $306.10 million, representing 89.9 percent of the outstanding balance.
A report by the Public Interest and Accountability Committee (PIAC) on the Management of Petroleum Revenue for the first half of 2016 said total interest payable by VRA on its outstanding debts amounted to $2.86 million in the first half of 2016.
The Committee therefore called on government to, as a matter of urgency, force VRA to pay the debt owed Ghana Gas Company before it hits unimaginable limits.
Petroleum Receipts
On petroleum receipts, the Committee’s report said approximately 69 percent ($87.15 million) of the total petroleum receipts of $126.46 million was distributed during the period under review, adding that the undistributed balance of $48.47 million remains in the PHF, awaiting distribution in the second half of the year.
It said approximately 52 percent ($45.07million) of the disbursements was allocated to the Annual
Budget Funding Amount (ABFA), while 26 percent ($22.77 million) to the Ghana National Petroleum Corporation (GNPC).
The report stated that 16 percent ($13.52 million) was lodged in the Ghana Stabilization Fund (GSF), with the remaining $5.79 million (6%) going into the Ghana Heritage Fund (GHF).
The Committee revealed that total allocation to GNPC was $22.77 million while $64.04 million was spent, representing a net deficit of $41.27 million (181.9 percent).
“For the first time since the allocation of petroleum revenues commenced, the disbursement to GNPC of $22.77 million could only cover 77% of the Jubilee financing cost of US$29.51 million.
“An amount of $3.12 million was expended on the Western Corridor Roads while $0.32 million was spent as GNPC’s contribution to the decommissioning of the Saltpond Field,” it said.
The report said an amount of GH¢172.9 million (US$45.07 million) was allocated to the ABFA during the period under review which translates to a 64 percent shortfall in the projected ABFA of $126.13 million.
“71.29 percent (GH¢123.25 million) of the allocation to the ABFA went to the Roads and Other Infrastructure priority area, GH¢10.97 million (6.34%) went to Agricultural Modernisation, GH¢38.08 million (22.02%) went into capacity building, with 0.6 million (0.35%) going to PIAC,” it said.
By Cephas Larbi