The Minority in Parliament last Tuesday, once again, chastised the management of the Ghana National Petroleum Corporation (GNPC) for what they said was profligate expenditure.
They accused the company of wanton dissipation of national resources and said the company had become a "monster” which needed to be tamed.
Leading the onslaught, during the debate to approve the programme of activities of the company for 2016, the member for Effutu, Mr Alexander Afenyo -Markin, said the bank guarantee of $100 million issued by the GNPC to the Electricity Company of Ghana (ECG), during the purchase of the Karpowership, was unconstitutional.
In his view, it was only Parliament which had the right to approve such a deal and said instead of the agreement being brought before Parliament, it was executed on the orders of the President.
"The issuance of a guarantee is not the core mandate of the GNPC. It is only Parliament which can, for the purposes of appropriation, approve such a deal.
Why should the GNPC commit money to a venture that is not its core mandate, "he asked.
The member for Atwima Mponua, Mr Isaac Asiamah, said $47 million of the GNPC's money had been "locked up" at the Universal Merchant Bank and asked whether the company had now metamorphosed into the Bank of Ghana.
Renovation of Petroleum House
He said the renovation of Petroleum House, one of the offices of the GNPC, had cost GH¢40 million and wondered how the nation could sit by and watch the company waste Ghana's scarce financial resources.
The member for Abuakwa South, Mr Samuel Atta Akyea, quoting from documents available to him, said the GNPC had expended about GH¢45 million on ICT upgrade and expansion, and added that that was shocking.
He said the GNPC was a "strategic player” in the national economy which, if it engaged in prudent management practices, would wean itself off the national kitty.
The member for Komenda- Edina-Eguafo-Abirem, Nana Ato Arthur, noted that the company had budgeted GH¢115.42 for its new office building.
"But as we speak, we still do not know the actual cost of that building. Has the GNPC become the new IMF?”, he added.
Minister’s response
The Minister of Petroleum, Mr Emmanuel Armah -Kofi Buah, in a response to the specific issue about the GNPC'S mandate, said the core functions of the corporation had been spelt out clearly in PNDC Law 64.
He said the corporation was mandated to undertake the exploration, development, production and disposal of petroleum products in the country including gas.
He said GNPC’S role in ensuring that funds were provided for the procurement of the power plants was within its mandate.
Speaker defers approval
The First Deputy Speaker of Parliament, Mr Ebo Barton-Odro, who considered all the issues brought to the fore, deferred approval of the programme until the Minister of Petroleum and officials of the GNPC had responded to some of the matters raised.
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