Bright Simons calls it a sweetheart deal, for Ghana National Petroleum Corporation (GNPC) to buy gas at $7.9 and sell at $2.79/ mmbtu. But it cannot be farther from the truth that this is a sheer manifestation of the reckless abandon of public interest for private gain.
GNPC is aware of the economic malaise the country faces, much of which is attributable to the dysfunctional set up and actions of the Corporation.
Two weeks ago, the Italian Giant, Eni, had to draw down on Ghana’s LC with Stanchart because GNPC was unable to pay for the OCTP gas. An amount of $183 million was drawn down at one go, creating a total outstanding debt of $360 million with Stanchart.
The LC drawdowns have become recurrent since 2018 with GNPC clueless about how to redeem the crisis to stabilize the finances of the corporation and be responsible for its debt.
The worst that can happen from any prudent analysis is for GNPC to sell the expensive gas at a discounted price. But perhaps it makes sense for private benefit, hence undermining public good on the altar of greed to discount the gas for a private company.
In all of this, the taxes of the people are used to offset the discount given by GNPC.
Unfortunately, it appears GNPC is not alone in this game. The Economic Management Team (EMT) has systematically laid the foundation for such a nation wrecking decision. The EMT in cahoots with the Ministry of Energy assumed regulatory function to undermine the decisions of the Energy commission to sell gas at commingled price to provide fairness in the gas market.
Therefore, the ruling of the Energy Commission to deny Genser cheap gas was thrown to the dogs by successive energy ministers, and ever-present Dr. Kofi Koduah Sarpong, who as GNPC boss approved a gas sale of $2.79/ mmbtu when John Peter Amewu was Energy Minister, and a further discount of $1.79 under Matthew Opoku Prempeh alias “Napo” to create an all-in-Cost of about $2 billion in sixteen years.
To the fair mind, this raises questions about whether it is just a matter of incompetence or negligence. But, the complete alignment of energy ministers and CEOs to such blatant commitment of a public agency to such a “financial menstruation” affirms incontrovertible negligence on the part of officialdom.
In the coming days, The Herald will be providing systematic insight into the politics, the private gains and the cast of actors working to make Ghana poorer, while they enjoy lavish lives with their families.
