GNPC Must Operate on Sound Commercial Lines- PIAC

The Public Interest and Accountability Committee (PIAC), the statutory body with oversight responsibility of the management and efficient use of the country’s petroleum revenues, has suggested that the Ghana National Petroleum Corporation (GNPC) should be listed on the Ghana Stock Exchange (GSE).

The Technical Manager of the Public Interest and Accountability Committee, Mark Agyemang, made these comments, adding that the reason for this is to reduce the level of government interference in the affairs of the Ghana National Petroleum Corporation (GNPC) and to maintain control and ownership of the national oil company to Ghanaians.

 “The government’s consistent control of the corporation and, for that matter, its use of the corporation to finance quasi-fiscal expenditures is a worry.

 “GNPC should operate on sound commercial lines, but the interference of the central government stops the corporation from having a strategic plan of becoming a standalone and world-class operator,” Mark Agyemang remarked.

Besides the mission of the Ghana National Petroleum Corporation (GNPC), which is to lead the sustainable exploration, development, production and disposal of the petroleum resources of the country, it is also expected to leverage the right mix of domestic and foreign investments in partnership with the people of Ghana.

The role of the Public Interest and Accountability Committee on the other hand is to ensure there is sound oil revenue management and as such the committee is not expected to watch the government interfere with the Ghana National Petroleum Corporation’s responsibility thereby helping the country to maximise the benefits of its hydrocarbon resources.

The Public Interest and Accountability Committee Technical Manager also raised concerns about the fact that some of the actions and dealings of the Ghana national oil company with the government breaches some sound business principles which can affect accountability of revenues accrued to the body.

According to the Natural Resource Governance Institute (NRGI), the Ghana National Petroleum Corporation which holds and manages the state’s interests in the petroleum sector as a partner in all petroleum agreements in Ghana, sold 73 cargos of oil, made up of 71.1 million barrels valued at US$5.2 billion, between 2011 and April 2020.

Mr. Mark Agyemang revealed that there are certain occasions in the past, where government borrowed from the Ghana National Petroleum Corporation (GNPC), without proper documentation of the transactions undertaken, making it difficult to account for them at the detriment of the people of Ghana.

The Technical Assistant further cautioned that the national oil company should be seen to be pursuing the public’s interest and supporting the government’s objective of providing adequate and reliable supply of petroleum produce as well as reducing the country’s dependence on crude oil imports, through the development of Ghana’s own petroleum resources instead of the agenda of a particular government or group of people.

All these reasons contribute to the need for Ghana National Petroleum Corporation to list on the local bourse to formalise and reduce discrepancies pertaining to their transactions, Mr. Mark Agyemang opined.

“So if GNPC is listed on the stock exchange and the government wants to borrow from it, it would be documented,” he added.