70 total views, 3 views today
The Minority in Parliament demanded the withdrawal of the Ghana National Petroleum Corporation’s (GNPC) work programme for the year 2019 currently before the House.
According to the Minority Spokesperson on Finance, Cassiel Ato Forson, the allocations for items such as corporate social responsibility and the use of GNPC as a vehicle to borrow some 250 million dollars to be spent by the Energy Ministry is illegal.
“What we expect of the Ministry of Energy is to withdraw this document and relay something acceptable before the House. I am going to start a crusade against such an expenditure.”
ACEP had already questioned some allocations in the GNPC work programme.
According to ACEP, GNPC is spending $20 million on its operations in the Volta Basin which is less than 50% of the amount it is blowing on CSR programmes.
“The Corporation plans to spend US$ 43.05 million on corporate social responsibility for the 2019 operational year.”
ACEP stated that spending as much as $43 million on corporate social responsibility gives a cause for concern particularly when it is juxtaposed against GNPC’s “operations expenditure beyond the traditional cash call on the producing fields.”
“In 2019, GNPC proposes to spend $20.3 million on its operations in the Voltaian Basin and its subsidiaries in the sector. This is less than 50% of what GNPC wants to spend on CSR,” the energy policy think tank stated.
ACEP raised the concerns in a detailed analysis of GNPC’s work programme for the 2019 financial year.
ACEP noted that GNPC in recent times has become more popular in delivering development projects rather than its core mandate.
“While GNPC, like any corporate entity, has a responsibility towards society, it is unusual for sound corporate organisations to spend more than 10% of its cash flow (not profit) on corporate social responsibility. The Corporation’s CSR expenditure becomes more profound when its CSR budget is compared with the budget of some critical ministries.”
ACEP in the document sighted by citinewsroom.com urged Parliament not to approve the CSR budget for GNPC.
“Parliament should not approve any CSR budget for the Corporation until the end of the fifteen-year financing window provided in the PRMA has elapsed. This should free up funds for the Corporation to deliver on its core mandate as an upstream oil player,” ACEP recommended.