GNPC clarifies JOHL Revenues and Litasco loan; disputes misconceptions

The Ghana National Petroleum Corporation (GNPC) has released a detailed response to recent media reports concerning Jubilee Oil Holdings Limited (JOHL) and an ongoing loan agreement with Litasco. The statement aims to address inaccuracies and misreporting.

Clarification on JOHL Revenues

The issue was brought to light following the publication of the “Highlights of the 2023 Semi-Annual Report of PIAC” by the Public Interest and Accountability Committee (PIAC). PIAC reiterated its position that revenues from JOHL’s liftings should be paid into the Petroleum Holding Fund (PHF).

GNPC has consistently disagreed with this view and has provided extensive explanations as to why revenues generated by JOHL should not be classified as petroleum revenue meant for the PHF. GNPC emphasizes that JOHL, although wholly owned by GNPC, operates as a distinct legal entity in accordance with the Companies Act.

The Corporation unequivocally rejects any allegations of misappropriation or attempts to divert $343 million intended for the PHF, underlining that all transactions undergo transparent annual audits.

Litasco Loan Facility Clarified

GNPC clarified that the current loan facility negotiation with Litasco is not a new loan initiated by GNPC or the Government of Ghana. Instead, it serves as a refinancing arrangement for an existing debt held by the Electricity Company of Ghana (ECG) and the Government of Ghana. GNPC’s role is that of a counterparty.

The primary goal of this arrangement is to guarantee an uninterrupted power supply to the country, with the loan aimed at refinancing existing debts. GNPC presented this loan proposal to Parliament, and discussions are currently ongoing.

GNPC remains actively engaged in finalizing the specific terms of the agreement. After concluding negotiations, the final terms will be reviewed by the GNPC Board, the Minister for Energy, and the Minister for Finance before being presented to Parliament.

GNPC’s Commitment to Transparency

The Corporation maintains a record of transparent financial practices, undergoing annual audits conducted by reputable firms designated by the Auditor General. The results of these audits are submitted to Parliament for thorough examination.

GNPC’s stance on not paying JOHL’s revenues into the PHF is supported by an express legal opinion from the Attorney General of the Republic of Ghana.

The statement reaffirms GNPC’s dedication to upholding transparency and promises to keep Parliament informed as the situation progresses.

Source: DAILY MAIL GH