“The behaviour of the union is a clear vindication of our position that Mr. Obeng should step aside,” Mr. Bawa, said in a Citi News interview.

[contextly_sidebar id=”RqcuCrPJUWg280agyskPLoQHqaGUZuVQ”]The Minority, which made calls for the interdiction, expressed disappointment in the stance taken by the workers on the issue.

The unionized workers of BOST held a press conference to side with Mr. Obeng, and have also dismissed the claims against the embattled MD, claiming that 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 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.

One of the main issues of contention however, is the fact that the two companies involved in the sale of the contaminated fuel, Zup Oil and Movenpinaa Energy, were found to be unlicensed by the National Petroleum Authority (NPA), thus contravening section 11 of the National Petroleum Authority Act, ACT 691, 2005.

How effective will probe be?

As the saga unraveled, the Energy Ministry served notice of intent to set up an investigative committee to probe the recent dealings at BOST.

But Mr. Bawa again said, “before this committee can work properly, even people within BOST would have to volunteer information about what they know about this transaction.”

But the MP does believes that considering their stance, they will not cooperate with the investigation that could indict their MD, who may also try sabotage the investigation.

“The committee will need documents from BOST. The committee will need people to volunteer. He is still going to interfere in the work of the committee. In my opinion, this is going to put a very strong question mark on the findings of the committee.”

More shady deals previously 

The BOST staff were claiming the company receives requests from dealers of off-spec products dating back to 2014, 2015 and 2016. They however said they saw nothing untoward with those deals.

Following their protests, Citi News laid hands on a document citing some 38 companies without an NPA license, which purchased 20, 590,000 litres of contaminated fuel in 2015 and 2016.

This happened under the leadership of the former BOST MD, Kwame Awuah-Darko, who according to some staff of BOST, is seeking to have his rot covered up with this recent deal under Mr. Obeng.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post BOST staff will compromise probe – MP appeared first on Citi 97.3 FM - Relevant Radio. Always.

The MP for Bongo, Edward Bawa said any investigation will be compromised with the Managing Director still at post.

[contextly_sidebar id=”7bwExUJNmKnGOaORYrvEPlXdTAAMCtnj”]”We do know that with his presence there, he will tamper with the investigation,” Mr. Bawa said on Eyewitness News.

The Minority first called for the BOST MD’s interdiction following a Citi News report making known claims to the effect that, Ghana lost about GHc 7 million in revenue following attempts by the BOST to sell contaminated fuel to some oil marketing companies,

When the Minority MPs called for the BOST MD to be interdicted, the Mr. Bawa said it was because they “wanted a situation where the investigation would go on without any hindrance.”

But “as we speak, two officers have been interdicted because they were against this whole idea of a sale,” he added.

Mr. Bawa noted the further that the committee will rely on some workers on BOST to be able to unravel the truth of the transaction “but if you have a boss who is almost like a tiger there, there is no way you can get the best out of them.”

The MP thus served notice that the Minority will not be waiting for the committee’s findings and “will definitely go ahead to push for the interdiction of the BOST MD.”

The two companies involved in the sale of the contaminated fuel, Zup Oil and Movenpinaa Energy, were found to be unlicensed by the National Petroleum Authority (NPA), thus contravening section 11 of the National Petroleum Authority Act, ACT 691, 2005.

The African Center for Energy Policy (ACEP), which first alleged that these companies were unlicensed also called for the BOST MD to step aside to allow a probe into the matter.

The NPA has already conducted preliminary investigations into the matter.

Focus of investigation

The eight-member committee set up to probe the contaminated fuel sale has been mandated to determine the circumstances that led to the contamination of the fuel and review the transaction.

The committee will also review the procedures undertaken by BOST to evacuate the product and ascertain the quality and remaining quantity of the product.

The committee will be made up of representatives of; the National Petroleum Authority (NPA), the Tema oil Refinery (TOR), the Ghana Standards Authority (GSA), Bureau of National Investigations, Chamber of Bulk oil Distributors, Association of Oil Marketing Companies, Energy Commission and a representative from the relevant Civil Society Organizations.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post BOST MD could sabotage contaminated fuel probe – MP appeared first on Citi 97.3 FM - Relevant Radio. Always.

The companies, Zup Oil and Movenpinaa Energy, will however also be allowed to regularise their operations with the NPA, according to the acting NPA CEO.

[contextly_sidebar id=”jUu0yBiueKL9EZslGDoTK6Lj98wZfC2V”]They are not licensed to undertake any commercial activity in the downstream petroleum industry thus, their activities infringe on section 11 of the National Petroleum Authority Act, ACT 691, 2005.

Speaking on the Citi Breakfast Show, Mr. Tampuli said “there is a standard sanction that we impose on such petroleum service providers who do not have licences to operate. What we do is to enforce these sanctions which are known to everybody in the industry. For every trivial activity that they engage in, they pay GHc10,500.”

Mr. Tampuli added that, the NPA is “in the process of reviewing those guidelines to include the possibility of confiscating assets of those companies if they do not get licences before they start operating.”

The NPA has however “asked them [Zup Oil, Movenpinaa] to come and regularize their operations because they are not known and if they are not known, they are not bound by the guidelines and regulations we have in the sector.”

The NPA, has said it will take legal action against the firms, whiles it conducts further investigation to determine the actual quantity and quality of the products received.

The contaminated fuel story was brought to the fore by a Citi News report, indicating that Ghana lost about GHc 7 million in revenue following attempts by BOST to sell the fuel.

BOST could also be sanctioned

BOST will also face some sanctions if found culpable in the controversial sale of the over-5 million litres of contaminated fuel.

“That is not to say that after we have completed our investigation and BOST is seen to have misconducted itself or to have engaged in some conduct that is condemnable, we will do so, and we will send them sanctions.”

“If you breach the rules, we will apply the sanctions. We are not in any way pampering this matter because it is BOST,” Mr. Tampuli said.

Below are the initial findings of the NPA’s investigations so far

1. BOST had at their premises, 5 million litres of an off-spec product. This is alleged to have resulted from BOST accidentally discharging gasoline into a diesel storage tank wich already contained some diesel sometime in January 2017.
2. The tank containing the off-spec product was subsequently isolated from normal marketing and sales operations whilst investigations into the incident was initiated by BOST.
3. Based on the recommended disposal options by a Committee that investigated the incident, BOST opted to sell off the off-spec product to a company known as Movenpinna Energy.
4. Subsequently, BOST notified the Ghana Revenue Authority of their intention to dispense of the 5 million litres of the off-spec product from its storage. The process of evacuation commenced on 20^th June, 2017. So far, the quantity of the off-spec product evacuated from the depot is 471,00 litres as indicated below:
   • On 20th June, 2017: 240,000 litres was evacuated
   • On 21st June, 2017, 231,000 litres was evacuated (the stated quantities were loaded into ten Bulk Road Vehicles)
5. On 23^rd June, 2017, additional 380,00 litres of the off-spec product was loaded into eight BRVs at the depot. However, the dispatch of these BRVs from the depot was halted on the instructions of the NPA when information about the evacuation got to the NPA. This is because BOST failed to notify the NPA and acquire prior authorization before commencing the evacuation of the off-spec product. Officials of the NPA visited the BOST depot on 27^th June, 2017 and confirmed that the 8 BRVs were still stationed at the depot with their contents intact. Samples were taken from all 8 BRVs as well as the isolated BOST storage tank for analysis.
6. The NPA was able to discover the location where 6 of the BRVs discharged the off-spec product the carried from the BOST depot. This was made possible by the NPA’s BRV tracking system.
7. Officials from the NPA visited the location (Zup Oil) at Gulf-City, Tema on 27^th June, 2017. Documentation presented to the officials suggested that all ten BRVs were offloaded at the facility, however, this is subject to confirmation. In this regard the NPA is conducting further investigations to determine the actual quantity and quality of the products received at the facility of Zup Oil. Meanwhile, samples of the product from the tanks have been taken for analysis and the tanks sealed to prevent tampering.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post NPA to fine Zup Oil, Movenpinaa over contaminated fuel sale appeared first on Citi 97.3 FM - Relevant Radio. Always.

The rot under Kwame Awuah-Darko left a close-to-$300 million debt, according to BOST.

[contextly_sidebar id=”LjPk8L1YFq6yaVLklRUyWDc39NB6N9Pm”]Following Citi News making known claims to the effect that, Ghana lost about GHc 7 million in revenue following attempts by the BOST to sell contaminated fuel to some oil marketing companies, there have been calls for the current BOST Managing Director, Alfred Obeng Boateng to be interdicted over the whole controversy.

The Minority in Parliament, who are leading the charge went further to say the circumstances under which 5 million litres of contaminated fuel was dubiously sold has led to a 14.25 million cedis financial loss to the state.

But in a statement, BOST insisted these issues were coming to light to frustrate the attempts by the current BOST Managing Director to address the financial rot at the company.

“The Minority’s assertion that the MD of BOST should be interdicted is baseless and unfounded. It is a political plan to divert the new MD’s attention from dealing with the rot of his predecessor, Mr. Kingsley Kwame Awuah-Darko, which has left BOST with a debt close to $300,000,000.”

This rot, according to BOST, includes the diversion of GHc 40.5 million of company funds to a fictitious account currently under investigation.

BOST added that, there was the awarding of an overpriced contract of $39 million to construct the BOST head office complex and the awarding of another overpriced contract of $19 million to construct a pipeline from APD to Akosombo, both of which have been suspended.

Following this, the National Petroleum Authority, (NPA), confirmed that the two companies alleged to have purchased the over 5 million litres of contaminated fuel from BOST, Zup Oil and Movenpinaa Energy, were not licensed to engage in that transaction.

Find below the full BOST statement

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post Contaminated fuel saga a distraction from former MD’s rot – BOST appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to the NPA, it will take legal action against the firms, while it conducts further investigation to determine the actual quantity and quality of the products received.

Below are the initial findings of the NPA

1. BOST had at their premises, 5 million litres of an off-spec product. This is alleged to have resulted from BOST accidentally discharging gasoline into a diesel storage tank wich already contained some diesel sometime in January 2017.
2. The tank containing the off-spec product was subsequently isolated from normal marketing and sales operations whilst investigations into the incident was initiated by BOST.
3. Based on the recommended disposal options by a Committee that investigated the incident, BOST opted to sell off the off-spec product to a company known as Movenpinna Energy.
4. Subsequently, BOST notified the Ghana Revenue Authority of their intention to dispense of the 5 million litres of the off-spec product from its storage. The process of evacuation commenced on 20^th June, 2017. So far, the quantity of the off-spec product evacuated from the depot is 471,00 litres as indicated below:
   • On 20th June, 2017: 240,000 litres was evacuated
   • On 21st June, 2017, 231,000 litres was evacuated (the stated quantities were loaded into ten Bulk Road Vehicles)
5. On 23^rd June, 2017, additional 380,00 litres of the off-spec product was loaded into eight BRVs at the depot. However, the dispatch of these BRVs from the depot was halted on the instructions of the NPA when information about the evacuation got to the NPA. This is because BOST failed to notify the NPA and acquire prior authorization before commencing the evacuation of the off-spec product. Officials of the NPA visited the BOST depot on 27^th June, 2017 and confirmed that the 8 BRVs were still stationed at the depot with their contents intact. Samples were taken from all 8 BRVs as well as the isolated BOST storage tank for analysis.
6. The NPA was able to discover the location where 6 of the BRVs discharged the off-spec product the carried from the BOST depot. This was made possible by the NPA’s BRV tracking system.
7. Officials from the NPA visited the location (Zup Oil) at Gulf-City, Tema on 27^th June, 2017. Documentation presented to the officials suggested that all ten BRVs were offloaded at the facility, however, this is subject to confirmation. In this regard the NPA is conducting further investigations to determine the actual quantity and quality of the products received at the facility of Zup Oil. Meanwhile, samples of the product from the tanks have been taken for analysis and the tanks sealed to prevent tampering.

–

By: citifmonline.com/Ghana

The post BOST contaminated fuel saga: The NPA’s key findings appeared first on Citi 97.3 FM - Relevant Radio. Always.