Secretary of the Senior Staff Association of BOST, Ekow Sey claims that some Bulk Oil Distribution Companies (BDCs) and highly placed individuals, who form the cartel, have since October last year (2017), prevented BOST from importing petroleum products into the country.

Speaking to Citi Business News, Mr. Sey warned of dire consequences if nothing is done to break up the growing cartel within the petroleum sector.

“As we speak now, BOST is the only entity that has been given the mandate to ensure that we keep strategic stock for the country.  The question we should ask ourselves is that a state company that has been given such a huge responsibility, why is it that from October till date people are trying so hard to put obstacles in our way to bring in petroleum products for strategic reasons. For fuel insecurity, I can’t speak about it in detail but you can make some analogy and draw some inference and get your answer.”

Mr. Sey also highlighted the difficulty BOST faces in maintaining the needed level of strategic stocks of petroleum products, in the face of attacks from the cartel.

“The BDCs have no mandate to keep strategic stocks for the country. So they can dispose of any products they have. But in the event that there are issues and we run out of petroleum products, who is going to ensure that we have strategic stocks for the country? It is only BOST, and once we are not allowed now, with impediments and some obstacles being put in our line of operation, it is very clear that very soon there’ll be fuel shortage within our pumps and within the market.”

In an earlier statement to express their displeasure at developments within the petroleum industry attributable to cartels, the Senior and Junior Staff Associations asserted that the great cartel has been in the system for long and will only be suppressed when the President, the Vice President, Chief of Staff and the Energy Minister understand the important role that BOST can play to bring petroleum prices down.

“Government should know that in the deregulation petroleum regime like ours without any giant governmental agency playing a role;  even if the government removes all taxes the private sector which now controls the industry will replace it with profit in a smart way leaving the ordinary consumers in their vulnerable state; hence reducing taxes is not the ultimate option,” the statement added.

On the part of Mr. Mampaya, the Chairman of the Junior Staff Union he categorically stated that in most cases those in right positions to deal with the problems are given wrong advice.

He cautioned that if the government ignored their advice, “this great cartel whose members have made themselves kingmakers can worry the government in 2020 election because the ground is being prepared for that.”

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By: Bobbie Osei/citibusinessnews.com/Ghana

The post Fuel crisis looms over cartel in petroleum industry – BOST workers appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Majority at a press conference today [Friday], said the controversy at BOST was only a symptom of deep-seated rot under the leadership of the immediate past BOST Managing Director, Kwame Awuah Darko.

[contextly_sidebar id=”o7lga21SvInSo15nsdIVX3s5gNoVBNTn”]They alleged that between 2014 and 2015, there was a bi-monthly transfer of between GHc 2.5 to GHc3.5 million to the Chief of Staff’s office from BOST, ostensibly from the sale of contaminated fuel.

The acting chairman of the Energy Committee of Parliament, Emmanuel Akwasi Gyamfi, outlined a number of allegations of malfeasance and fuel contamination under the Mahama administration.

“In 2014, under the NDC, a similar contamination occurred. The quantity involved was 4.6 million litres. In 2015, still under the NDC, another contamination occurred. The quantity involved was 9.9 million litres. 2016 witnessed the mother of all contaminations. The quantity involved amounted to 12 million litres.”

Contaminated fuel was detected in January 2017

The Majority also said the contaminated fuel under the current BOST management, was detected in January shortly after the change in government.

“The 5 million litres of contaminated fuel was detected on January 18, 2017, exactly 11 days after the swearing in of President Nana Addo Danquah Akufo-Addo. Mr. Alfred Obeng [the current MD of BOST] had not at that time assumed office to take over, and Mr. Awuah Darko was still effectively the CEO of BOST.”

The Minority had called for the immediate interdiction of the Mr. Obeng and accused him of doing business with unlicensed companies – Zup Oil and Movenpiina, a claim which was later confirmed by the National Petroleum Authority (NPA).

Mr. Obeng was also accused by the minority of causing financial loss to the state the tune of GHc 14.25 million.

After a Citi News report highlighted the controversial sale at BOST, the company’s management said calls for the interdiction of Mr. Obeng were a distraction from the financial rot overseen by Mr. Awuah-Darko.

BOST staff subsequently kicked against calls for the interdiction of Mr. Obeng and held a press conference to dismiss the allegations against the embattled MD, claiming the issue over contaminated fuel was being overblown.

The employees, in a petition addressed to the Minister of Energy, Chief of Staff, and the Minister of National Security also argued that calls for the dismissal of their MD were uncalled for since the sale of off-spec products was not new to the operations of BOST.

The BOST staff also claimed that the company received requests from dealers of off-spec products in 2014, 2015 and 2016 and said they saw nothing untoward with those deals.

Meanwhile Citi News sighted a document indicated that some 38 companies without an NPA license, purchased 20, 590,000 litres of contaminated fuel in 2015 and 2016, under the leadership of the immediate past BOST MD.

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By: Duke Mensah Opoku/Delali Adogla-Bessa/citifmonline.com/Ghana

The post Majority demands full audit of BOST ‘rot’ under Awuah-Darko appeared first on Citi 97.3 FM - Relevant Radio. Always.