Public Interest Accountability Committee

Status Of Recommendations

Finding Recommendation Responsibility Status Comments
17. Non-Payment of Receipts from the Sale of Wet and Lean Gas to GNGC and VRA respectively (See 2015 Semi-Annual Report
VRA indebted to GNGC to the tune of US$103.03 in respect of lean gas supplied by GNGC while GNGC’s indebtedness to GNPC in respect of gas exports stood at US32.60 million All outstanding receivables in respect of lean gas sold should be paid as a matter of urgency so as to guard against the GNGC falling into the never-ending cycle of indebtedness prevalent in the power sector. GNGC must also ensure prompt payment to GNPC in respect of gas exports. GNPC, GNGC and VRA Very little done. VRA’s indebtedness to GNGC had increased by over 100% between June and December 2015 from US$103.03 to US$227.78 with GNGC’s debts owed GNPC increasing by a similar magnitude (from US$32.60 million to US$79.06 million) over the same period. Only US$553,815 out of expected gas proceeds of US$79.06 (representing Something has to be done immediately to prevent debts owed by VRA and GNGC to GNGC and GNPC respectively from getting to unsustainable levels.

 

Finding Recommendation Responsibility Status Comments
18. Using ABFA funds to build capacity in Oil and Gas Sector (Recommendation 6 of 2015 Semi-Annual Report)
Little to no capacity being built in the oil and gas sector using ABFA funds. Serious and urgent attention must be paid to the building of capacity in the oil and gas sector so as to help ensure the realisation of the local content targets set out in the Local Content Policy. GNPC / Ministry of Finance The situation remains the same as the end of 2015. Only 3.25% (GH¢8.93 million) of GH¢274.97 million allocated tocapacity building from the ABFA accounts since 2011 has gone to build direct capacity in the oil and gas sector