The Ranking Member of Parliament’s Mines and Energy Committee, Adam Mutawakilu, has alleged that government has borrowed about $289 million from the Ghana National Petroleum Corporation (GNPC) over the past three years.
He says this development is worrying, considering the fact that GNPC is currently operating with a funding gap.
Speaking to Citi News, the Damongo Member of Parliament described the GNPC as government’s side-pocket.
“It happened that because of the [budget] estimate that is coming, we realized that we included it in the estimate that government will be coming to defend. But we had the opportunity to meet with GNPC and it is quite worrying. Between 2017 and September 2019, government has borrowed from GNPC to a tune of $289 million for the various agencies. Bulk Oil, Storage, Transportation Company (BOST) taking money from GNPC. This has not been budgeted,” he said.
“I told you that government is using GNPC like their side pocket. Anytime they have a challenge they just go in and take money. This must stop. $289 million within three years?” he quizzed.
The MP says this development does not augur well as GNPC is now funding needless causes.
He further noted that it isn’t that GNPC doesn’t know what to do with its monies.
“Though the monies are for the corporate social responsibility, however, the amount is of concern. I am worried that we could donate to the Okyehene an amount of almost GHC1.8 million and to Dagbon by GHC400 thousand. How about the Asantehene and the Western Region? They host most of the assets of the oil money. So, you look at it and see that it is skewed irrespective of it being used but you must do it in a manner that is fair to everybody. You don’t skew it to satisfy only some people.,” he stated.
GNPC’s ‘wasteful’ spending
Earlier this year, the Public Interest and Accountability Committee (PIAC), asked Parliament to put a cap on the Ghana National Petroleum Corporation’s (GNPC) Corporate Social Investment with immediate effect since it fears the corporation may veer off its core mandate if it continues with its current expenditure trends.
The committee restated the position following memos evolving from the Corporation signifying that about GHc2 million and US$ 30,000 are being spent on brand, communication and corporate social responsibility activities.
Also, the Corporation is expected to provide a detailed account of its expenditure when it appears before the Mines and Energy Committee of Parliament for the scrutiny of its 2020 figures.