Ghana Gas denies reports of ‘missing’ $47.4m gas funds

The Ghana National Gas Company has dismissed reports suggesting that it is unable to account for some $47.4 million accrued from the sale of raw gas to the Ghana National Petroleum Company (GNPC).

Ghana Gas, in a statement signed by the Corporate Communications Manager of Ghana Gas, Ernest Owusu Bempah, described such reports as “untrue and misleading.”

It further rejected claims that the Volta River Authority (VRA) owed Ghana Gas an amount of $ 434 million, saying “it is also incorrect that the Volta River Authority (VRA) owes Ghana Gas an amount of $434 million. Ghana Gas like any other entity acknowledges that it owes some of its partners in the energy sector but the figures being churned out are inaccurate.”

The company indicated that on the contrary, the “VRA as at 31st May owed Ghana Gas to the tune of $534.2 million, while Ghana Gas owed the GNPC an amount of $162.5 million as at 31st May this year [2017].”

Ghana Gas further explained that “VRA complains that its inability to settle debt to Ghana Gas is as a result of Electricity Company’s failure to pay huge debts owed VRA, while ECG blames its failure to settle debts to VRA on its consumers.”

It however indicated that, “government is working assiduously to resolve these cyclical debt issues to make the sector more financially solvent.”

“As a way of resolving these debt issues the government is creating a holding fund for all receivable in the power generation sector. This move is expected to create a cash waterfall to cater for the needs of all the stakeholders in the Energy industry,” the statement added.

GHANA NATIONAL GAS COMPANY REACTS TO MISCONCEPTION ON PIAC REPORT

Ghana National Gas Company (Ghana Gas) has taken note of various media reports on the Public Interest & Accountability Committee (PIAC) allegations that the company cannot account for $47.4 million being revenue from sales of raw gas to Ghana National Petroleum Company (GNPC).

The company wishes to state that the story is untrue and misleading. It is also incorrect that the Volta River Authority (VRA) owes Ghana Gas an amount of $434 million. Ghana Gas like any other entity acknowledges that it owes some of its partners in the energy sector but the figures being churned out are inaccurate.

Ghana National Gas Company also wishes to state the there is a cyclical debt challenge within the energy sector and the company is the most owed. To set the record straight, as at 31st May this year, VRA was indebted to Ghana Gas to the tune of $534.2 million. Ghana Gas on its part owes GNPC an amount of $162.5 million as at 31st May this year.

VRA complaints that its inability to settle its debt to Ghana Gas is as a result of Electricity Company’s failure to pay huge debts owed VRA whiles ECG blames its failure to settle debts to VRA on its customers.

However, we wish to state that the government is working assiduously to resolve these cyclical debt issues to make the sector more financially solvent.

At a way of resolving these debt issues, the government is creating a holding find for all receivables in the power generation sector.

This move is expected to create a cash waterfall to cater for the needs of all the stakeholders in the energy industry.

Ghana Gas wishes to indicate that it is collaborating with its partners and stakeholders in the sector to create a harmonious working relationship that has the potential to resolve challenges confronting the sector.

Signed

Ernest Kofi Owusu-Bempah Bonsu

Corporate Communications Manager, Ghana Gas

By: Marian Ansah/citifmonline.com/Ghana