Parliament approves 2018 Semi-Annual Report of PIAC on oil revenues


Parliament has approved the 2018 Public Interest Accountability Committee (PIAC) Semi-Annual Report on the management of petroleum revenues.


The PIAC report was presented to Parliament on May 28, 2019 in accordance with the Petroleum Management Act 2011 and the Standing Orders, and was subsequently referred to the Parliamentary Select Committee on finance for report.

Presenting the report of the Committee at the Plenary, member of the Parliamentary Select Committee on Finance and the Member of Parliament for Asikuma-Odoben-Brakwa, Mr. Effah, Anthony, stated that the objective of the report is to inform the House and the general public on the management and use of the petroleum revenues for the period January to June, 2018.

He pointed out that a total amount of 28,892,050 barrels (bbl) of oil was produced from the three offshore producing fields between January and June, 2018.

Mr. Effah indicated that a total of 11,923,286 barrels of oil was produced from the Jubilee field, 11,772,267 barrels from Tweneboa, Enyenra, Ntomme (TEN), and 5,286,497 barrels from the Sankofa-Gye Nyame (SGN) field.

In moving for the motion, Mr. Effah added that the said barrels of oil represents a 19.04 percent increase over the first half of 2017 production.

On gas production, Mr. Effah emphasised that the total volume of raw gas produced for the first half of 2018 amounted to 44,797.21 MMScf, as compared to 31,673.96 MMScf for the same period in 2017.

He further explained to the House that the total amount distributed from the Petroleum Holding Fund (PHF) during the period under review was US$475.86 million, and that out of the total amount, Ghana Stabilisation Fund (GSF) received the largest share of 32 percent.

Mr. Effah reiterated that the Ghana National Petroleum Corporation (GNPC) received 30 percent, Annual Budget Funding Amount (ABFA) received 25 percent and the Ghana Heritage Fund (GHF) had a share of 13 percent.

Committees’ report

The Committee observed that State Owned Enterprises (SOEs) such as the Ministry of Finance, Tema Oil Refinery, Bulk Oil Storage and Transport (BOST) and the Ghana Gas owed GNPC to the tune of GH₵1,318,393,339.

On unutilised ABFA fund, the Committee was informed that an amount of GH₵403.74 million is sitting in the Treasury Single Account and was brought forward in 2018.

The Committee recommended that the Minister of Finance should take the urgent steps to seek the needed Parliamentary approval in order to disburse the unutilised amount since the money is idle in the account.

Reaction from the Ranking Member

The Ranking Member on Parliamentary Select Committee on Finance, Mr. Cassiel Ato Baah Forson, averred that the amount of money allotted to GNPC in their operation is more than what goes into the budget.

He pointed out that the House should be concerned about the expenditure of GNPC, and that it is important to exercise oversight responsibility over the expenditure of the Corporation.

The Ranking Member, who doubles as the Member of Parliament for Ajumako-Enyan-Essiam, told the House that the Minister of Finance should state the specific account of the Treasury Single Account where the GH₵403.74 million has been kept.

He added that the Minority in Parliament will continue to monitor the unutilised GH₵403.74 million, to ensure accountability during the presentation of the mid-year review budget.

Source: GhanaJustice/S.Ayisi


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