The 2022 annual report of the Public Interest and Accountability Committee (PIAC), a committee set up by an Act of Parliament to monitor petroleum funds utilisation, has revealed that for two consecutive years, 2021 – 1.74% and 2022 – 2.39%, the Ministry of Finance was not been able to meet the requirement to transfer five percent of the Annual Budget Funding Amount (ABFA) to the District Assembly Common Fund (DACF).
For the Industrialisation Priority Area, the report said, it received an amount of GH¢9.29 million representing 0.20 percent of the total ABFA (GH¢4.41 billion).
The disbursement which represents 4.29 percent of the amount budgeted (GH¢216.3 million) for the priority area for 2022 does not reflect giving priority to Industrialisation in the use of ABFA, it said.
The report established that an amount of GH¢643.61 million (US$73.68 million) was transferred to Ghana Infrastructure Investment Fund (GIIF) in 2022. According to the Fund, the entire disbursement was used to support the Agenda 111 Project of the Government.
This is the second year after 2021 that Ghana Infrastructure Investment Fun GIIF has received funds for the Agenda 111 Project. In 2021 an amount of GH₵290.38 million (US$49.39 million) was allocated to the Fund, it said.
The retention of the current cap of US$100 million on the GSF for the year 2022 is not in accordance with the formula stipulated in L.I 2381.
“A proper application of the formula would have returned a cap of US$638.87 million.
“The current cap does not help build the Fund to serve its purpose,” the report indicated.
In 2022, the Ghana National Petroleum Corporation (GNPC) received an amount of US$38,835,537.56 as gas commodity revenue from the Cash Waterfall Mechanism (CWM) which constitutes petroleum revenue. This amount
was not paid into the Petroleum Holding Funds (PHF).
GNPC is using JOHL to carry out operations not approved in GNPC’s Workplan for 2022. Two notable examples are Explorco cash calls on Springfield, ENI Block 4 etc. – US$5,546,419.12 and SOPCL Decommissioning – US$11,000,000.00.
Total lifting proceeds received by JOHL (a subsidiary of GNPC) for 2022 amounted to
US$272,652,208.95. Despite calls by PIAC that revenues of JOHL constitute petroleum revenue and should be paid into the PHF, GNPC disagrees and continues to use lifting proceeds of JOHL for other expenditures.
Although the Ghana National Gas Company (GNGC) generates some revenue from the sale of processed gas, it has been unable to settle its indebtedness to GNPC for raw gas supplied because of the zeroed policy introduced by government to subsidise its portion of the CAPI of the gas.
We’ll ensure there are enough funds for 2023/2024 cocoa purchasing season – COCOBOD
COCOBOD has assured that concrete steps have been taken to ensure it is able to secure enough funds to finance its annual cocoa purchases in the 2023/2024 crop season.
Against the backdrop of a reportage by Reuters that the firm had borrowed up to $200 million from cocoa traders to plug its funding gap, COCOBOD said it had adopted a two-prong financing strategy to ensure that it obtained the required funds for the purchasing season.
A statement from COCOBOD in response to the Reuters report indicated that it had had firm assurances from its bankers of making funds available in time for the purchasing season and that a “Cocoa syndicated Loan has been laid in Parliament for consideration and approval.”
Below is COCOBOD’s full statement.
FINANCING OF PURCHASES FOR 2023/24 CROP SEASON
There have been some recent publications in the news media in relation to funds for cocoa purchases for the 2023/24 Crop Season.
We wish to brief our stakeholders on this very sensitive national issue as follows:
COCOBOD planned a two-prong financing for the 2023/2024 Crop Season in an effort to diversify Its source of funding for the annual cocoa purchases.
The strategy was therefore, to use a prefinancing arrangement with the international buyers to raise an amount of US$400 million for purchases at the beginning of the Season in September 2023.
These initial funds were expected to be augmented by an additional US$800 million loan from a syndicate of lenders by the end of November 2023. After engagements with buyers for several weeks, the arrangement was however discontinued.
Thus, since the beginning of the Season, cocoa purchases have been financed with noncollateralized cocoa sales proceeds. COCOBOD is therefore still in the process of securing the syndicated loan for the 2023/24 Crop Season.
As a matter of fact, the Board has so far received firm response from our bankers in this regard, and the Cocoa syndicated Loan has been laid in Parliament for consideration and approval.
We wish to use this medium to assure our stakeholders that the necessary arrangements have been made to secure enough funding for cocoa purchases for the year under review.
ISSUED BY: PUBLIC AFFAIRS DEPARTMENT
Ghana is a good place to do business – Bawumia tells Czech investors
Vice President Dr. Mahamudu Bawumia is actively seeking Czech investors for the country.
Dr. Bawumia emphasized that Ghana remains the best country in Africa for investment due to its stability, peace, and growth opportunities for businesses.
He made these remarks during his meeting with the Czech Prime Minister, Peter Fiala, at the Jubilee House in Accra.
“Ghana is an excellent place for doing business. We are the most peaceful country in West Africa and the second most peaceful country in Africa. It is crucial for anyone looking to invest in Africa to consider Ghana as the ideal destination for business.”
“I am confident that this will open up opportunities for our respective business sectors,” he stated.
Mahama’s ’24hr Economy’ project will revolutionize Ghana – Dafeamekpor
South Dayi Member of Parliament, Rockson Nelson Dafeamekpor, has said that the ’24-hour Economy’ project conceived by the flagbearer of the National Democratic Congress (NDC) Former President John Dramani Mahama will turn the economy around if implemented.
Mr Mahama proposed the ’24hr Economy ‘ project when he met with officials of the country’s mother workers union on Tuesday, November 7, 2023 at the start of his engagement with key stakeholders in a quest to return to power.
Dubbed ‘Building Ghana Tour’, the interactions with the stakeholders is to apprise them of the policies the next NDC administration will implement to transform the economy.
At Tuesday’s engagement, he said “NDC was left alone as the solitary voice seeking to hold the government accountable and speaking up for the voiceless Ghanaian and we were often cast out as spoilt brats who were ranting just because we have lost power.
“Today, the chickens have come home to roost and we are all affected.”
Commenting on this in a tweet, Mr Dafeamekpor said “Some concrete Examples of John Mahama’s ‘24hr Economy’ Projects include Terminal 3 at Kotoka, Tema Port Container Terminal, New Ridge Hospital, Maritime Hospital, Tema, UGMC, Legon, Kejetia Market, Accra Data Centre, the TamaleTeaching Hospital. It’ll revolutionize the economy.”