President Akufo-Addo for the first time spoke on the BOST issue during his encounter with journalists on Tuesday and said there was no wrongdoing.

[contextly_sidebar id=”gIvotj0emHgjjS44QGNPxesqQJ6D9dvb”]But speaking on Eyewitness News on Wednesday, Edward Bawa who insisted that whole deal breached the National Petroleum Authority (NPA) Act argued that the Akufo-Addo lost a great opportunity to dissociate himself from the scandal.

“If you look at this current activity, it bordered on distribution, marketing and sale. So I was surprised that the President was not aware that the NPA Act has a position that covers that and that was an Act that was breached. And indeed it was because of the infringement of this portion of the Act that the NPA itself in its statement when the issue broke indicated that the actors of this particular issue have breached sections of the Act and therefore they were contemplating even punishing them.”

“So that was the part that we realized that the President was ill-informed, he didn’t know the facts, and to a very large extent he lost the greatest opportunity to dissociate himself from this scandal that is smelly in this country,” he added.

Background

BOST has been heavily 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 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.

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By: Godwin Akweiteh Allotey/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

The post Major players in BOST contaminated fuel saga [Infographic] appeared first on Citi 97.3 FM - Relevant Radio. Always.

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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The post BOST, NPA, others sued over contaminated fuel saga appeared first on Citi 97.3 FM - Relevant Radio. Always.

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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This corroborates the claim by the Africa Centre for Energy Policy (ACEP), which raised the alarm about the irregularities in the transaction.

[contextly_sidebar id=”B8pc6HPFFYWtCGCfcfQ92OxPUh5LRBcC”]According to the NPA, it will take legal action against the firms, whiles “it conducts further investigation to determine the actual quantity and quality of the products received at the facility of Zup Oil.”

The Authority confirmed this in a statement signed on Tuesday, by its acting CEO, Alhassa Tampuli, and copied to citifmonline.com, after its initial investigations into the incident.

“We wish to assure the general public that the NPA is keenly monitoring the situation and shall keep the general public updated on the development. Meanwhile, the NPA has intensified its monitoring activities of the petroleum products retail outlets nationwide to ensure the quality of the fuel sold to consumers is not compromised.”

“Additionally, the NPA has noted that, Movenpinaa Energy and Zup Oil are not licensed to undertake any commercial activity in the downstream petroleum industry. Their activities therefore infringes on section 11 of the National Petroleum Authority Act, ACT 691, 2005. Accordingly, the NPA will take appropriate legal action against the said companies” the NPA’s statement said.

Portions of the Authority’s initial findings also read: “Officials from the NPA visited the location (Zup Oil) at Gulf-City, Tema on 27th June, 2017. Documentation presented to the officials suggested that all the ten BVRs were offloaded at the facility. However, this is subject to confirmation. In this regard, the NPA is conducting further investigation 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.”

Interdict BOST Director over sale of contaminated fuel – Minority

The transaction, which saw Movenpiina and Zup OIL purchase the fuel, is supposedly fraught with irregularities and possible corruption to the tune of 14.25 million cedis, as alleged by the African Centre for Energy Policy (ACEP), and the National Democratic Congress (NDC) Minority group in Parliament.

The two groups have since called on the Managing Director of BOST, Alfred Obeng Boateng step aside and allow for investigations into the matter.

The Minority said BOST’s argument that the “blending of the said fuel couldn’t be done at TOR because the CDU is down is most untenable”.

The Minority also demanded the immediate withdrawal of the contaminated product from the market to protect consumers and assurances that this will not recur.

“That the financial loss estimated at GHS 14.25 million be retrieved by surcharging the offending officials at BOST in line with the recent Supreme Court decision” the minority suggested.

Background

The country is said to have lost about GHc 7 million in revenue following attempts by the Bulk Oil Storage and Transportation Company Limited (BOST) to sell contaminated fuel to some oil marketing companies.

Documents sighted by Citi News indicate that BOST agreed to sell about GHc 5 million litres of the contaminated fuel to Movenpiina Energy.

The documents indicated that as at Wednesday, June 21st, 2017, BOST had agreed to sell off an estimated 186,000 litres of contaminated fuel to the oil company.

ACEP’s claims

ACEP said Movenpiina initiated the transaction with BOST on 19th May, 2017, some ten days before it became a legally recognized company in Ghana.

Also, Movenpiina had not obtained the requisite license from the NPA to trade in the industry, according to the centre.

ZUPOIL LTD, the company which was named “the off-taker” was said to have a storage facility that could accommodate the volume of product, but was not known in Ghana’s petroleum industry.

Thus ACEP said it was illegal for BOST to have engaged Movenpiina and ZUPOIL LTD in the sale and storage of the off-spec petroleum product.

We didn’t err in dealings with Movenpiina, ZUPOIL – BOST

BOST, however, defended its decision to sell off the contaminated or off-spec products to Movenpiina saying the move was the most prudent considering the potential loss in revenue.

In response to this, ACEP said the management of BOST exhibited unwarranted discretion in the award of the contract to Movenpiina.

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By: Ebenezer Afanyi Dadzie/citifmonline.com/Ghana

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