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Stop giving loans to government and its institutions until significant recoveries are made – PIAC to GNPC



  The Public Interest and Accountability Committee (PIAC) has advised the Ghana National Petroleum Corporation to stop giving out loans and grants to government and government institutions, until it recovers several millions of credit that has gone bad.

This is one of the recommendations in the 2021 Annual Report on Management of Petroleum Revenue in Ghana, by the statutory body.

GNPC recorded a loss of ¢1.6 billion in 2020 according to the 2020 State Ownership Report.

Presenting the highlights of the report, Chairman of PIAC, Professor Kwame Adom Frimpong said “PIAC calls on GNPC to double up efforts at recovering loans to Government and its agencies to ensure that the Corporation’s work programme does not suffer from non-implementation. For now, GNPC should discontinue granting loans and guarantees until significant recoveries are made with respect to outstanding loans and guarantees owed the corporation.”

PIAC as part of its recommendations also urged the Ministry of Finance in collaboration with relevant institutions to develop appropriate guidelines on the utilisation and reporting of Annual Budget Funding Amount disbursed to the District Assembly Common Fund (DACF).

Again, it said “the Ministry of Finance should provide a breakdown of the disbursements to the DACF and report same to PIAC”.

The Committee however commended the Petroleum Commission for terminating the agreement of four contractors for non-performance.

It therefore urged the Commission to ensure strict compliance with minimum work obligations by IOCs. PIAC also recommended “strict compliance with the 2019 judgement of the Supreme Court in the case of Kpodo vs The Attorney-General, which stipulates that 5 percent of the ABFA shall be allocated and disbursed to the DACF”.

Since its establishment in September 2011, PIAC has exercised its oversight responsibility of monitoring and evaluating the management and use of Ghana’s petroleum revenues by the government and stakeholder institutions.

In compliance with provisions of the Petroleum Revenue Management Act (PRMA), 2011, the Committee prepares statutory Semi-Annual and Annual Reports, which aim at keeping Ghanaians and other interested stakeholders regularly informed about the management and utilisation of the country’s petroleum revenues. Since its establishment in 2011, the Committee has published a total of 21 Reports – 10 Semi-Annual and 11 Annual.

The 2021 Annual Report is being published a month after the statutory date of 15th March, due to the delay in the receipt of data from some of its stakeholders. PIAC continues to urge its stakeholders to ensure the timely submission of information to enable the Committee meet its statutory timeline.

Some key Findings/Observations

  • Four of the 18 subsisting Petroleum Agreements (see Chapter 3) have been terminated by the Petroleum Commission in 2021 for non-performance in their minimum work obligations.
  • Annual crude oil production declined by 17.7 percent from 66,926,806 bbls in 2020 to 55,050,391 bbls in 2021, despite the rebound of economic activities in 2021, after the easing of COVID-19 restrictions.
  • Total petroleum revenues increased by 17.5 percent from US$666,390,751.22 in 2020 to US$783,325,849.87 in 2021 due to higher crude oil prices. This is in spite of the decline in crude oil production in 2021.
  • Surface Rental Arrears increased by 22.22 percent from US$2,110,212.23 in 2020 to US$2,579,170.21 in 2021.
  • For the first time since Ghana started receiving petroleum revenue in 2011, the DACF received an amount of GH¢32,380,403.91, following the 2019 decision of the Supreme Court in the case of Kpodo vs The Attorney-General. However, the disbursement made was 1.74 percent of the ABFA, instead of the 5 percent specified in the Supreme Court judgement.
  • Although the Ministry of Finance made a disbursement of the ABFA to the DACF, there was no report on the utilisation of the amount
  • After a 3-year break, allocations to the Ghana Infrastructure Investment Fund resumed in 2021, with an amount of US$49,390,491.08, following the passage of the Ghana Infrastructure Investment Fund (Amendment) Act, 2021 (Act 1063).
  • For the first time since 2011, the ABFA was used to pay a judgement debt of GH¢12,475,426.01. This was under the Roads, Rail and Other Infrastructure Priority Area during the period under review.
  • In 2021, the Corporation spent US$640,292.89 on the Maritime Boundary Special Project (MBSP). Cumulatively, GNPC has spent a total of US$11.85 million on Maritime Boundary related activities, even though the Ghana Boundary Commission is responsible for such activities
  • In 2021, GNPC could not realise its budgeted revenue from loans and guarantees amounting to US$126.68 million out of an accumulated total of US$318.09 million owed the Corporation by Government and its agencies since 2011.

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Techno Genesis Ghana graduates the first batch of trainees under BiG entrepreneurship project



The first batch of young individuals who signed onto the Believe in Ghana (BiG) project in Kumasi have graduated to venture into the creative arts and manufacturing industries.

The Believe in Ghana (BiG) project trains young aspiring entrepreneurs to take charge in the creative arts and manufacturing sectors.

Trainees are engaged in bakery and pastries, soap and bleach making, batik and tie and dye as well as beads making.

Techno Genesis Ghana graduates the first batch of trainees under BiG entrepreneurship project

Project originator, Tony Donkor, says the employment rate of the youth in Ghana needs to be addressed through such innovations.

“The project intends to raise a generation of knowledgeable youth who can take up the manufacturing space in order to secure a brighter future for the Ghanaian youth.

“The project intends to equip illiterate, semi-literate and literate persons with the skills set to secure a better future in the absence of a salaried job” he said.

The BiG project has seen partnership with the Centre for National Culture in Kumasi who created the avenue for individuals to be trained through localized methods.

Techno Genesis Ghana graduates the first batch of trainees under BiG entrepreneurship project

Deputy Director for Performing Arts at the Centre, Mustapha Issa, says locally-manufactured items need the necessary patronage to promote local industrialization and national culture.

According to him, “people often portray cultural products as fetish and they do not want to patronize it, but if we can reorient the definition of culture to ourselves, people can then appreciate it.”

He added that, “accepting the cultural values our products stand will bring great benefit from.”

Mr. Issa also advised that the country takes its cultural values seriously in order to preserve the rich heritage as a people.

He indicated that, “our music, movies and arts should represent our heritage, rather than degrading it.”

The first cohort of 15 trainees under the project shared their experiences on the impact.

“I work in a travel agency and we usually host events where attires are worn. I signed up to the project so I can learn how to make apparels to get the contract for myself and make some money as well,” said Doreen.

Another participant, Sumaila said “I am a musician and I wanted to add a clothing line to it, so I enrolled to learn how to make batik Tie and Dye. I can use the technique to create my own brand in addition to the music I do”.

Techno Genesis Ghana graduates the first batch of trainees under BiG entrepreneurship project

The BiG project intends to train over 10,000 persons in the Ashanti Region and further extend to other regions of the country.

The Believe in Ghana Project is under the operation of Techno Genesis, in partnership with The Multimedia Group, Kumasi and the Centre for National Culture, Kumasi.

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Loyalty Insurance MD raises concern about unhealthy competition in industry



The Managing Director of Loyalty Insurance Company Limited, Ernest Frimpong, has expressed worry about some unhealthy practices in the insurance sector.

According to him, even though Ghana’s insurance market is highly competitive, characterised by a lot of innovation, some unethical practices like premium undercutting could hamper growth of the industry.

“The Ghana insurance market is a highly competitive and dynamic marketplace,” Mr. Frimpong said.

“There is a dichotomy; on one hand, the market is characterised by innovation, and on the other hand, there is also some unhealthy competition in the market. The issue of undercutting premiums has been around for a while. We need to change this narrative; we need stronger cooperation among ourselves for the benefit of our industry”. He added.

The Loyalty Insurance MD spoke at the company’s fifth anniversary celebration launch themed, “Growing through digitalisation.”

The company unveiled four new digital applications which it believes will place it at the forefront of technological innovation in the insurance sector.

The Managing Director also expressed gratitude to shareholders of the company for raising capital to meet the National Insurance Commission’s minimum capital requirement of ¢50 million.

The Commissioner of Insurance, Dr. Justice Ofori, commended the management and staff for embracing technology as part of their operations.

He urged them to re-strategise and remain customer-focused in order to remain relevant in the industry.

“Let me congratulate management and staff of Loyalty Insurance Company Limited for the attainment of five years of growth and consistent success and express my gratitude to all who have contributed to making the company what it is today,” he said.

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Most Ghanaians unaware of oil funded projects – PIAC  



Most Ghanaians are unaware of projects funded with oil funds, a public fora held by the Public Interest and Accountability Committee (PIAC) in the Western North and North East regions have revealed.

In both regions, the Committee held regional public fora on the 2021 PIAC Annual Report, which brought together stakeholders from the traditional council, religious groups, security agencies, traders, educational institutions, among others to deliberate on the management and use of petroleum revenues.

The participants also called for more projects to be executed with petroleum revenues.

PIAC therefore recommended the labelling of Annual Budget Funding Amount (ABFA)-funded projects for identification.

Most Ghanaians unaware of oil funded projects – PIAC  

It again reiterated its commitment to carrying out its mandate to ensure the prudent management and use of petroleum revenues in Ghana.

PIAC commends some oil funded projects but unhappy about some

In terms of the projects funded with petroleum funds, the Committee expressed satisfaction about some, whilst critiquing others, calling for urgent steps to complete them.

The inspection of the projects took place from Sunday, 24th to Friday, 29thApril, 2022.

Most Ghanaians unaware of oil funded projects – PIAC  

In the Western North Region, the Committee inspected the construction of a 3-storey Regional Coordinating Council (RCC) Administration Block in Sefwi Wiawso, construction of three Senior Staff Bungalows at Sefwi Wiawso and a rural market in Amoaya in the Bodi Constituency. The construction of the RCC building received ₵10.5 million from the Annual Budget Funding Amount (ABFA) in 2020 and 2021.

Members of the Committee expressed satisfaction of the project which had been completed, commissioned, and was in use.

The Committee also expressed satisfaction with the senior staff bungalows which received a total of GH₵1,779,660 from the ABFA in 2020.

The project was reported to be 90% complete with bungalows erected and roofed, internal finishing virtually completed, and external works ongoing.

Most Ghanaians unaware of oil funded projects – PIAC  

Again, the Committee welcomed the upgrading of the Nalerigu – Gbintri road, in the North East region which was allocated ₵20 million from the ABFA in 2020. It was also inspected by the PIAC team and officials of the Ghana Highway Authority.

In terms of project that the Committee called for urgent action to be completed, they included the rural market, situated in Amoaya, in the Western North region which received ₵107,327 from the ABFA in 2020, but work had stalled and the construction of a 3-Storey Administration Block for the Council, located in Nalerigu in the North East region.

Construction commenced in 2019, and the project was expected to have been completed in 2021. Outstanding works include painting, tiling, electricals, and furnishing.

PIAC was established under Section 51 of the Petroleum Revenue Management Act (PRMA), to among others, monitor and evaluate compliance with the Act. The Committee was inaugurated and commenced work on 15th September, 2011.

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