The Energy Ministry will be setting up an eight-member investigative committee to look into the Bulk Oil Storage and Transportation (BOST) company’s controversial sale of 5 million litres of contaminated fuel.
The committee has been mandated to determine the circumstances that led to the contamination of the fuel and review the transaction, among others.
The committee will also review the procedures undertaken by BOST to evacuate the product and ascertain the quality and remaining quantity of the product.
This was revealed in a statement, which also indicated that, BOST has so far evacuated a total of 471,000 litres of the contaminated fuel, but has currently suspended evacuation in compliance with National Petroleum Authority (NPA) instructions.
The Ministry also stated that it has received a report of the preliminary investigations conducted by the NPA.
The companies engaged in this deal, Zup Oil and Movenpinaa Energy, were found to be unlicensed thus, are not to undertake any commercial activity in the downstream petroleum industry, per section 11 of the National Petroleum Authority Act, ACT 691, 2005.
The concerns with the contaminated fuel were brought to the fore by a Citi News report, indicating that Ghana lost about GHc 7 million in revenue following attempts by BOST to sell the contaminated fuel.
The African Center for Energy Policy (ACEP), which revealed that the companies were unlicensed and that the process of the sale was fraught with irregularities, has called for the BOST MD to step aside and allow a probe into the matter.
The Minority National Democratic Congress (NDC) has also backed calls for the BOST MD to step aside.
Find below the full statement on the matter
MINISTRY OF ENERGY STATEMENT ON BOST OFF-SPEC FUEL ISSUES
Wednesday, June 28, 2017 – The Ministry’s attention has been drawn to the various media reports on the issue of the release of 5 million litres of off-spec fuel from the Accra Plains Depot of the Bulk Oil Storage and Transportation Company (BOST).
We have also received a report of the preliminary investigations conducted by the National Petroleum Authority on the issues. We note that BOST has so far evacuated a total of 471,000 litres of the said product and has currently suspended evacuation in compliance with NPA instructions.
We wish to assure the general public, that the Ministry is determined to ensure that the integrity of the quality of petroleum products supplied in the country is protected.
In view of this the ministry is in the process of setting up an 8 member investigative committee into the matter.
The Terms of Reference of the Ministerial committee include but will not be limited to the following
1.Determine the circumstances that created the off-spec product
2.Review the procedures undertaken by BOST to evacuate the product
3.Ascertain the quality and remaining quantity of the product
4.Determine if the product can be corrected, if not determine the alternative use for the product
5.Review the transaction
The committee will be made up of representatives of:
1.National Petroleum Authority (NPA)
2.Tema oil Refinery (TOR)
3.Ghana Standards Authority (GSA)
4.Bureau of National Investigations
5.Chamber of Bulk oil Distributors
6.Association of Oil Marketing Companies
8.A representative from the relevant Civil Society Organizations
The committee is expected to advise the Ministry on the necessary technical, administrative and legal actions to be taken.