This, he said, is part of interim measures to prevent the supply of contaminated fuel onto the Market following the BOST scandal where some 5 million liters of the contaminated fuel, was wrongly sold to Movenpinna Energy and Zup Oil, sparking fears that they might have been sold to unsuspecting consumers.

The National Petroleum Authority, NPA, however clarified that the fuel was not sold to the public.

[contextly_sidebar id=”02DtlIVincpwVnjBE4B2pgw63ElWr0CX”]Responding to questions on the floor of Parliament, Boakye Agyarko said the Ministerial Committee charged with investigating the scandal had not completed its work, but their report would be submitted to the Mines and Energy Committee of the House when ready, after which a white paper will be issued on it.

“One of the interim measures is that no longer will individuals be allowed to lift contaminated products out of BOST,” he said.

Boakye Agyarko explained that they have taken this decision because it usually becomes difficult to track the whereabouts of products lifted from BOST.

“We also noted that as soon as products were lifted out of BOST, you lost control of its track. As an interim measure, it is only BOST with its BVRs that can lift products to designated end-use consumers under the care and control of BOST. No longer are private companies allowed to lift products to unknown destinations. This became obvious during the preliminary investigation conducted by FDA itself whose preliminary results were released to the public. So we are taking the obvious which can remediate some of these deficiencies and shortfalls,” he added.

BOST contaminated fuel saga

BOST took centre stage in the media in July 2017, after it emerged that it had sold 5 million litres of contaminated fuel to two unlicensed companies, Movepiina and Zup Oil, which were allegedly set up a few days before the sale, causing Ghana to lose about GHc 7 million in revenue.

The Energy Ministry subsequently cleared BOST of any wrongdoing but the minority said they suspect it was an attempt to cover up the alleged rot.

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By: Godwin A. Allotey & Duke Mensah Opoku/citifmonline.com/Ghana
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The Minister of Energy who tasked a committee to investigate the issue subsequently cleared BOST and its Managing Director, Alfred Obeng Boateng of wrongdoing citing a Bureau of National Investigation (BNI) and National Security report.

But some Ghanaians especially the Minority in Parliament complained that it was a cover up.

Below is an infographic summarizing the scandal:

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By: Joy Notoma & Mawuli Tsikata/citifmonline.com/Ghana

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This comes at a time when the Bulk Oil Storage and Transportation Company Limited (BOST), is being accused of wrongfully selling about 5 million litres of contaminated fuel to some unlicensed companies under suspicious circumstances.

In recent times, almost every corner of the town has a table top fuel station where drivers and motorbikes fill their tanks ahead of their journeys from ‘goro’ boys popularly known as ‘belebele’.

The sellers known as the ‘belebele guys’ trade in contaminated petroleum products especially petrol, diesel and dirty oil.

These products, which are sold on table tops in the full glare of the police and other authorities are cheaper.

A gallon of petrol and diesel from the ‘belebele’ guys is sold at 12 and 13 Ghana cedis respectively, as against the pump price of 18 Ghana cedis.

Citi News investigations in the Ashaiman municipality revealed that the contaminated fuel were in different colours though the sellers claim they were all petrol and diesel.

For instance, petrol at some vending points are deep red, whilst others are light red and in some instances others are a bit dark.

Some residents who interacted with Citi News were worried the situation could lead to total chaos should there be a spark from any of the vending points.

Mostly, the illegal products which are kept in kiosks and containers are sold on table tops as authorities look on unconcerned.

“I don’t know why the authorities have allowed this illegality to go on for a very long time because these people are selling contaminated fuel and they must be apprehended with immediate effect without mercy,” a resident noted

Baba, a landlord at Ashaiman Valco flat, a densely populated area where the business is equally popular, noted that, he is unable to have a good night rest these days as a result of the sale of petroleum products just opposite his house.

“These days I am unable to sleep well because I am scared that one of these days there could be fire outbreak in my area. My neighbour who deals in this illegal petroleum product stores them in his room and it could spark fire if it mistakenly comes into contact with fire. Look at the proximity of his house and mine? I could be affected if there is a problem and this is all I have got so the police and the mandated authorities must act really fast,” he lamented

The phenomenon which is not a hiding business in the municipality seem to be booming due to the influx of commercial moto riders in the constituency and this has resulted in new joints popping up on daily basis.

Ali, a commercial motor-rider in the area noted that, he prefers to buy petrol from the table top because its cheaper compared to the price at the pump.

“I prefer to buy from the goro boys because it is cheaper than that of the fuel station. For instance 1 bottle of voltic bottle is 2 cedis; so why should I go to the fuel station.”

The municipal chief executive of Ashaiman, Albert Boakye Okyere, noted that he will soon together with Municipal Security Council clump down on them.

He advised those trading in the illegal trade to stop or face the law when the swoop takes place.

“I have also noticed the unfortunate trend in the municipality and subsequently I have met with MUSEC to organize a swoop to arrest them before it becomes the latest lucrative business in the area.”

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By: Elvis Washington/citifmonline.com/Ghana

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According to him, Ghana lost about GH¢850 million in just one year as a result of the illegal fuel trade.

Speaking on the Citi Breakfast Show, he suggested that some security agencies will require the backing of the president before any military intervention to address the menace of illegal contaminated fuel trading in the downstream petroleum sector.

[contextly_sidebar id=”jvgiAJF8gqCDVvDV8n7bp7aVCM0aKa0t”]“There is a greater problem downstream and those down here are very much aware of the challenges, yet when you talk to some NPA officials, some will tell they will tell you they will need the backing of the president with the military to be able to destroy those illegal makeshift facilities where our fuel is mixed and contaminated daily.”

“If you compare the fuel mafia currently, it is bigger than the galamsey operators. In one year, Ghana lost $850m to these operators of which Zup Oil is part and other illegal operators dotted across the Kpong area. These facilities exist physically,” he added.

A massive campaign against illegal mining thought to be one of the country’s biggest threats to lives and the environment, has been launched with the President giving his backing to the Lands Minister to John Peter Amewu to address the menace.

But Duncan Amoah believes much more resources must be committed by the President to address the illegal fuel trade.

He added that, “Security agencies are unable to deal with them effectively because you will go on and a bigger person from somewhere will call and say you should leave.”

He told host Bernard Avle that the 5 million litres contaminated fuel saga was a deliberate orchestration of some ‘insiders’ at the Bulk Oil Storage and Transportation Company (BOST) to get business for private companies they had interests in.

“…In BOST arriving at 5 million liters contaminated, how it got contaminated, some of us suspect strongly that there were insider hands who were looking to give business to outsiders.”

Fuel contamination deliberate

President of IMANI Africa, Franklin Cudjoe who said on The Big Issue in June that the fuel was contaminated deliberately.

Franklin Cudjoe said it was “perpetrated fraud.”

“Somebody must have been engaged in this whole fuel fraud and somehow it needed to be offloaded and a company has been set up not properly incorporated and we have decided to reduce that value of whatever has been contaminated deliberately, I don’t think it was a mistake. This fuel fraud is an organized crime. It is not just in Ghana…Don’t ever think these things are done by mistake,” he said.

It emerged last month that the Bulk Oil Storage and Transportation company (BOST) signed a deal to sell about 5 million litres of contaminated fuel to Movenpiina Energy and Zup Oil at a discounted price that could result in Ghana losing about GHs7 million in revenue.

Several groups in the oil sector have called for thorough investigations into the matter over suspicion of more underground deals but the Minister of Energy together with the Bureau of National Investigations (BNI) cleared the BOST Managing Director, Alfred Obeng of any wrongdoing.

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By: Jonas Nyabor/citifmonline.com/Ghana

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Following the public uproar over BOST’s sale of 5 million litres of contaminated fuel to two unlicensed companies, Movepiina and Zup Oil, which were allegedly set up few days before the sale, the Energy Minister, Boakye Agyarko at a press conference cleared the Managing Director of BOST, Alfred Obeng Boateng of wrongdoing citing a Bureau of National Investigation (BNI) and National Security report.

[contextly_sidebar id=”H8jyOchbO9S0FwAcgbCACJY4nSHLx1f4″]Government further challenged persons who claimed the contaminated fuel was being sold on the Ghanaian market to provide evidence.

Meanwhile, speaking on the Citi Breakfast Show on Tuesday, Executive Director of COPEC, Duncan Amoah, said he can lead the BNI to the illegal facilities.

“The real truth is being covered. The real substance of the matter is shielded from public discussion as to whether the product indeed ended up in the market. I can put on record that the last time we did some checks together with other petroleum personalities including Ben Boakye of ACEP, here in Tema–it was found that some of the BOST products were sitting in some tank yards; illegal facilities in Tema and that they were afraid to sell.”

“You push further to security operatives, you are told that indeed they can go and do the swoop but even when they are done, would the state be ready to prosecute? Because they have had several instances where NPA will go to arrest some of these illegal fuel dealers, by close of day some big people in some big places call that they should release those trucks. It’s a mafia.  I can put this on record and I can personally lead BNI today, if they want to get to the bottom of this. They know all the facts on the ground. Unfortunately there are so called bigger men in the space,” he added.

Ghana loses GHc800 million over illegal fuel operations

Reports suggest more than GH¢800 million cedis that should accrue to the state as revenue is lost every year through the operation of these illegal operators.

NPA helpless in contaminated fuel saga                                                                              

But it seems the NPA is helpless in the fight to clamp down on unlicensed fuel depots.

Although the NPA said it is taking steps to ensure these depots acquire licenses to operate, Duncan Amoah believes it is deliberately dragging its feet.

Speaking on the Citi Breakfast Show, the Acting Chief Executive of NPA, Hassan Tampoli, said activities of such illegal fuel operators is not new.

“…We are aware but as to how we will go about it, I think that is an institutional detail I don’t want to put out there. This people have been in operations for many years and I’m saying that within five months we want to take action against them. I think we should be commended.”

“This is just something we do on a regular basis. When we get the information, we set out our people to go and gather intelligence. We’ve been able to identify some areas and we are still identifying some more. But we need to get all of them, put them together then we get the necessary arrangements in place to be able to deal with those situations,” Mr. Tampoli added.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
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That is the conviction of the Executive Director of the Chamber of Petroleum Consumers of Ghana (COPEC), Duncan Amoah.

[contextly_sidebar id=”dlsbNEP73S89KOzNDq7TXm42emeRT5bQ”]According to him, the development is being shielded by a ‘mafia’ who have the full details about the operation of illegal companies in the downstream oil sector, but are reluctant to act due to their personal interests.

Speaking on the Citi Breakfast Show on Tuesday, Duncan Amoah said it was saddening that the Bureau of National Investigations (BNI), claimed the BOST Managing Director, Alfred Obeng, was innocent hence cleared of him any wrongdoing in the matter.

According to him, there was clear evidence that BOST was irresponsible in agreeing to sell off the product.

“Every step of the decision, there are questions to be answered. It leaves you a bit sad that the real truth is being covered; the real substance of the matter is being shielded from public discussion.”

“There has been several instances where NPA will arrest some of these illegal fuel dealers and by close of day, some big people in big places will call that you should release those trucks. It is a mafia.”

“They know all the facts on the ground, unfortunately, there are some so-called bigger men, bigger hands”

Duncan Amoah alleged that there were many illegal facilities in Tema dealing in the contaminated fuel, but nothing could be done about them due to the influence of some top government officers.

He added that, some insiders at BOST assisted to contaminate the fuel to give business to private companies they had stakes in.

“…in BOST arriving at the 5 million liters contaminated, how it got contaminated, some of us suspect strongly that there were insider hands who were looking to give business to outsiders.”

Mr. Duncan Amoah’s position corroborates the point made by the President of IMANI Africa, Franklin Cudjoe, who said on the Big Issue in June that the fuel was contaminated deliberately.

Franklin Cudjoe said it was “perpetrated fraud.”

“Somebody must have been engaged in this whole fuel fraud and somehow it needed to be offloaded and a company has been set up not properly incorporated and we have decided to reduce that value of whatever has been contaminated deliberately, I don’t think it was a mistake. This fuel fraud is an organized crime. It is not just in Ghana…Don’t ever think these things are done by mistake,” he said.

It emerged last month that the Bulk Oil Storage and Transportation company (BOST) signed a deal to sell about 5 million litres of contaminated fuel to Movenpiina Energy and Zup Oil at a discounted price that could result in Ghana losing about GHs7 million in revenue.

Energy sector analysts, the Africa Center for Energy Policy (ACEP) said that BOST exhibited unwarranted discretion in the award of the contract to Movenpiina but the management of BOST in a rebuttal said its decision to sell off the contaminated or off-spec products to Movenpiina was the most prudent considering the potential loss of revenue.

The National Petroleum Authority (NPA) later announced that the Movenpiina and Zup Oil were not licensed to operate in the oil and gas sector.

The Energy Minister, Boakye Agyarko, constituted an 8-member investigative committee to look thoroughly into the matter amidst calls from different groups including ACEP and the minority in parliament for the Chief Executive Officer of BOST, Alfred Obeng to be interdicted.

The Minister later at a press conference said based on a report by the BNI, he had cleared the BOST MD of any wrongdoing.

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By: Jonas Nyabor/citifmonline.com/Ghana

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The Managing Director of BOST, Alfred Obeng, Movenpinaa Energy, Zupoil and MacWest have all been joined to the suit filed by a Non-Governmental Organization (NGO) called Strategic Thinkers Network-Africa.

BOST had been widely lambasted for selling 5 million litres of contaminated fuel to two unlicensed companies, Movenpinaa and Zup Oil, which were allegedly set up few days before the sale, costing Ghana about GHc 7 million in revenue.

[contextly_sidebar id=”GX6Bb3HGXDyv4xGdOkJqgsh0krdwOjY9″]The Energy Minister, Boakye Agyarko subsequently set up an investigative committee to look into the matter.

However, on Tuesday, the Energy Minister cleared BOST and its Managing Director, Alfred Obeng Boateng of wrongdoing citing a Bureau of National Investigation (BNI) and National Security report.

“The investigations so far carried out by the state security agencies and the NPA show that on the basis of previous practice, there was no wrongdoing at BOST on the sale of the 5 million liters of contaminated products,” he added.

But several groups and individuals including the Minority in Parliament have accused the Energy Ministry of conniving with the BNI to cover up the scandal; a claim government had disputed.

The NGO in its writ argued that the entire transaction was “illegal,” “fraudulent” and with potential to cause financial loss to the State, and is therefore null and void and of no effect.”

It is however praying the court to declare the transaction between BOST, Movepinaa and Zup Oil as “illegal, unlawful and in clear violation of Section 16(2) (c) of the Public Procurement Act, 2003(Act 663) as amended by the Public Procurement (Amendment) Act, 2016 (Act 914).”

The Network is also urging the court to declare the “decision to single source the sale of the contaminated fuel products to the 4th Defendant [Movepiina] by the 2nd Defendant [BOST] acting through the 3rd Defendant [BOST MD] is in clear contravention of Section 35 and 40(1) of Public Procurement Act, 2003, (Act 663) as amended by the Public Procurement (Amendment) Act, 2016 (Act 914).”

“A declaration that the activities of the 4th and 5th Defendants in engaging in downstream petroleum activities without licenses is in violation of Section 11 of the National Petroleum Authority Act, 2005 (Act 691). An order of the Honourable Court setting aside the entire transaction on grounds of illegality and fraud,” the NGO added in the writ.

Investigate BOST scandal again – IMANI

Policy think tank, IMANI Ghana, has however called on the President, Nana Addo Dankwa Akufo-Addo, to initiate fresh investigations into the matter to prove his commitment towards fighting corruption.

According to IMANI, the report by the Bureau of National Investigations (BNI) clearing BOST of any wrongdoing as announced by the Minister of Energy, is not only baffling but “juvenile” and “delinquent.”

“This whole mockery of governance can be made clean again by a singular act of the President for fresh inquiry into the activities of BOST in the last 8 years, and all persons liable for fuel fraud to be held accountable. But we want immediate answers to the present fraud. It is simply early in the day for a new government with boundless optimism,” a statement signed by President of IMANI Ghana, Franklin Cudjoe stated.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
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According to IMANI, the report by the Bureau of National Investigations (BNI) clearing BOST of any wrongdoing as announced by the Minister of Energy, is not only baffling but “juvenile” and “delinquent.”

[contextly_sidebar id=”0Iw0CNHhZDV6r8C7E82q160h2kmK0CzY”]“This whole mockery of governance can be made clean again by a singular act of the President for fresh inquiry into the activities of BOST in the last 8 years, and all persons liable for fuel fraud to be held accountable. But we want immediate answers to the present fraud. It is simply early in the day for a new government with boundless optimism,” a statement signed by President of IMANI Ghana, Franklin Cudjoe stated.

BOST had been widely criticized for selling 5 million litres of contaminated fuel to two unlicensed companies, Movepiina and Zup Oil, which were allegedly set up few days before the sale making Ghana lose about GHc 7 million in revenue.

The Energy Ministry subsequently set an investigative committee to look into the mater.

However, the Minister, Boakye Agyarko, on Tuesday cleared BOST and its Managing Director, Alfred Obeng Boateng of any wrongdoing citing a BNI and National Security report.

“The investigations so far carried out by the state security agencies and the NPA show that on the basis of previous practice, there was no wrongdoing at BOST on the sale of the 5 million liters of contaminated products,” he added.

But IMANI in its statement argued that, clearing BOST of any wrongdoing is a “mockery of governance”  and a “bastardization of our institutions by politicians.”

“This whole saga is the clearest example yet of bastardisation of our institutions by politicians. How a supposedly competent committee set up by the energy ministry got railroaded and trumped over by the  BNI baffles all observers of our democracy. At worse, were the BNI justified to intervene, their conclusions are at best juvenile and delinquent,” he added.

Gov’t, BNI covering up contaminated fuel saga – Minority 

The Minority had accused the BNI of covering up the alleged rot at BOST over the sale of the 5 million litres of contaminated fuel.

Addressing the press in Parliament on Tuesday, the Minority Leader, Haruna Iddrisu, indicated that, they will stop at nothing to expose the alleged rot at BOST.

“The mere selling of contaminated oil matter to motorists, the mere admission of the regulator, the NPA to the extent that they were unaware and they had not licensed a particular entity also raises major issues as to which entity, registered or not registered that the state should be dealing with. The BNI would have to come public to share with us what they have investigated and what their findings are and not just a mere statement to the effect that the Minister should dissolve his committee,” Haruna Iddrisu added.

Below is IMANI’s full statement:

IMANI’s Statement of Support for Fresh Enquiry into the Fuel Fraud Saga

Sadly, there are inconsistencies in the accounts of the energy ministry, the National Petroleum Authority and the state owned bulk oil storage company, BOST, over the fuel fraud saga.  The attached open letter addressed to the President and also sent to me anonymously, gives some rather damning reasons for chain of errors.

What is clear from the varied accounts we have so far is that;

1. The regulator, the NPA, was kept in the dark about the shady deal until very very late in the day so its account for the most part, unfortunately does not count.
2. Close to 300,000 litres of deliberately contaminated fuel had been released onto the market and all relevant authorities in the trade are aware of it.
3. That the companies involved have no licenses and mandate to operate in the trade, illegal trade actually.
4. This whole saga is the clearest example yet of bastardisation of our institutions by politicians. How a supposedly competent committee set up by the energy ministry got railroaded and trumped over by the BNI baffles all observers of our democracy. At worse, were the BNI justified to intervene, their conclusions are at best juvenile and delinquent.
5. This whole mockery of governance can be made clean again by a singular act of the President- fresh inquiry into the activities of BOST in the last 8 years and all persons liable for fuel fraud be held accountable. But we want immediate answers to the present fraud. It is simply early in the day for a new government with boundless optimism.

Respectfully yours,

Franklin Cudjoe

Founding President & CEO, IMANI

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
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They contend that, the BNI and the Energy Ministry are engaged in a collusion to cover up the alleged rot to save the Managing Director, Alfred Obeng.

The comments follow Thursday’s press conference by the Energy Ministry absolving the Managing Director and the company of any wrongdoing.

Mr. Agyarko maintained that, the state institutions did a good job in their investigations into the matter.

[contextly_sidebar id=”108VLa0hORyrNk4WnP6DB4qpIBm0vmeI”]“Where is the cover up? The investigations so far carried out by the state security agencies and the NPA show that on the basis of previous practice, there was no wrongdoing at BOST on the sale of the 5 million liters of contaminated products. We wish to advise that social commentators will in future cross check their facts before making allegations that have the tendency of causing unnecessary panic among consumers of petroleum products,” Agyarko said.

But addressing the press in Parliament on Wednesday, Minority Leader, Haruna Iddrisu, insisted that the Energy Minister was just covering up for the BOST MD.

“This naked cover up is an insult to Ghanaians and an affront to the laws of Ghana. It is a disrespect to the National Petroleum Authority and disrespect even to Parliament because we raised it in Parliament because we were interested in a full scale investigation on the matter only for the BNI to say that this matter is dead at birth.”

Mr. Iddrisu therefore demanded a full publication of the actions of the BOST MD , saying “we demand that every fact of the conduct of the MD of BOST must be made available to the people of Ghana.”

“We stand by our original demands on this matter and call on all Ghanaians to stand up to this Government and demand transparent and accountable governance.”

BOST has been in the news for fraudulently selling 5 million litres of contaminated fuel to two unlicensed companies, Movepiina and Zup Oil,which were allegedly set up few days before the sale, making Ghana lose about GHc 7 million in revenue.

The NPA after complaining that it had not licensed the two firms, threatened to take legal action against the two companies.

The Ministry of Energy subsequently set up an eight-member committee to investigate the issue. The Minority and Majority Members of Parliament also waded into the controversy taking divergent positions.

Whereas the Minority called for the appointment termination of the current Managing Director of BOST, Alfred Obeng Boateng, the Majority demanded a full scale investigation into the matter beginning from the era of the former BOST boss, Kingsley Kwame Awuah-Darko.

–

By: Duke Mensah Opoku/citifmonline.com/Ghana

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Reports are emerging that the BNI has taken over the probe of the matter from the committee set by the Energy Ministry, and also exonerated the embattled Managing Director of BOST, Alfred Obeng Boateng of any wrongdoing.

[contextly_sidebar id=”BZpbDlfSX9F3IMridloe0Mng38UcCVeQ”]Addressing the press in Parliament today [Tuesday], the Minority Leader, Haruna Iddrisu, indicated that, they will stop at nothing to expose the alleged rot at BOST.

“There is a very bizarre and uncharacteristic developments in our country today that we are being told that the BNI is acting in a manner that we don’t only smell, but we can sense a cover up in respect of the matter of the selling of contaminated oil by BOST which matter bothers on fraud, corruption and abuse of office. We are aware that the Ministry of Energy has set up a committee to investigate the matter.”

The Minority Leader said information they have picked up suggest that the “the BNI is asking for dissolution of that committee.”

According to him, if such information was true, “that can only be a gargantuan cover up on a matter which is fraudulent and we believe that this action of the BNI can only be sowing the seed of corruption in our country and also allowing and preventing sunshine on matters that are of public interest.”

“The mere selling of contaminated oil matter to motorists, the mere admission of the regulator, the NPA to the extent that they were unaware and they had not licensed a particular entity also raises major issues as to which entity, registered or not registered that the state should be dealing with. The BNI would have to come public to share with us what they have investigated and what their findings are and not just a mere statement to the effect that the Minister should dissolve his committee,” he added.

Haruna Iddrisu further called on the president to stop such cover ups if he  really wants to fight corruption as he had promised during the electioneering.

“We are already aware of an internal turf between the ministry and other players within government. This recent development, we find unacceptable and therefore if the president means well in fighting corruption, he should not be seen supporting any cover up and must allow the ministerial committee to proceed henceforth with full investigation of the matter and report publicly or they may as well say that they are not interested in any other matter of public interest,” Haruna Iddrisu added.

Background

BOST had been in the news for selling 5 million litres of contaminated fuel to two unlicensed companies, Movepiina and Zup Oil, which were allegedly set up few days before the sale making Ghana lose about GHc 7 million in revenue.

The NPA after complaining that it had not licensed the two firms, threatened to take legal action against the companies while investigations continue into the matter.

Some documents sighted by Citi News revealed that such cases had occurred at BOST in the past since about 38 unlicensed companies benefited from such deal between 2015 and 2016.

The Ministry of Energy subsequently set up an eight-member committee to investigate the issue. The Minority and Majority Members of Parliament also waded into the controversy taking divergent positions.

Whereas the Minority called for the appointment termination of the current Managing Director of BOST, Alfred Obeng Boateng, the Majority demanded a full scale investigation into the matter beginning from the era of the former BOST boss, Kingsley Kwame Awuah-Darko.

–

By: Godwin A. Allotey & Duke Mensah Opoku/citifmonline.com/Ghana
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