Public Interest Accountability Committee (PIAC), in marking a decade in operations has underscored that infractions or mismanagement of petroleum revenues remain the biggest challenge faced in the last ten years.
While highlighting the achievements chalked over the last decade, the PIAC indicated it continued to experience challenges, however, noting that there is room for improvement regards implementation of recommendations.
“Despite the achievements made over the last 10 years, PIAC’s work continues to experience challenges. There is room for improvement regarding the implementation of recommendations made in PIAC Reports that highlight infractions or mismanagement of petroleum revenues in the country.”
Public Interest Accountability Committee
At the heart of the issue, PIAC noted that the Petroleum Revenue Management Act (PRMA) made no provision for its outfit to sanction infractions. Its powers in this regard went as far as only making recommendations to parliament for appropriate actions to be taken.
According to PIAC, “ten years is enough time to do a retrospection of the mandate given to PIAC and how effective its execution has been. It is also time to look at how the Committee can be strengthened further to help strengthen the transition from transparency to accountability in the management and use of the country’s petroleum revenues.”
The Committee also raised concerns about repeatedly making recommendations which are discussed on public platforms but gradually left to slide away unattended. Strengthening the sector required that relevant institutions acted on the recommendations to ensure that governance of the sector is continually improved so that the resource will benefit citizens optimally.
Petroleum Revenue Management and Funds
Highlighting the country’s journey in its crude oil production, the Committee noted that the enactment of the Petroleum Revenue Management Act (PRMA), 2011 (Act 815), some four years after the country discovered oil in commercial quantities marked a new era. Thus, giving clarity in the decision to do better with revenues from the country’s oil and gas sector.
The PRMA is aimed to “provide the framework for the collection, allocation and management of petroleum revenue in a responsible, transparent, accountable and sustainable manner for the benefit of the citizens of Ghana in accordance with Article 36 of the Constitution for related matters.”
The Act’s framework makes provision for the establishment and administration of the Petroleum Holding Fund (PHF) which receives all petroleum revenues and from which allocations are made to other designated funds. To avoid any loopholes regarding distribution of funds, the PHF outlines the formula for distribution of funds in the Act.
Statutory funds outlined in the Act for the purpose of the petroleum revenue management and use are the Ghana Stabilization Fund (GSF), the Ghana Heritage Fund (GHF), the Annual Budget Funding Amount (ABFA).
Also, petroleum revenues are channeled to other funds such as the Contingency, Sinking Funds and the Ghana Infrastructure Investment Fund (GIIF).
PIAC indicated that over the 10 years, it has fulfilled its three-fold mandate in engaging citizens at both the district and regional levels, and in all the regional capitals of the country. And highlights that the next years ahead marks a time to bridge the gap between PIAC and the public.
With the specific issues raised, especially pertaining to the administration and management of the funds and revenues allocated to the fund, the Committee should be offered the authority to sanction infractions to improve its obviously important work of ensuring transparency and accountability.
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