GNPC Blows GH¢5m On Tsatsu & Others

Tsatsu Tsikata and wife, Esther Cobbah
The Ghana National Petroleum Corporation (GNPC) has confirmed doling out huge sums of money as ex-gratia to former management staff, some of whose appointments were terminated 15 years ago.

The GNPC claimed that four persons – Tsatsu Tsikata, former Chief Executive; his wife Esther Cobbah, a former Public Affairs Manager; Nana Boakye Asafu-Adjaye, a former acting Chief Executive; and Benjamin Spencer Dagadu, a former Field Evaluation and Development Manager and now Deputy Minister of Petroleum – were awarded ex-gratia without stating the amounts paid.

However DAILY GUIDE checks indicated that a fifth person, the late Eric Cato Brown, had monies paid to his estate even though there were no records to show the beneficiaries officially demanded the payments.

Sources said the money paid out amounted to about GH¢5 million.

According to the GNPC, the aforementioned persons served it for periods ranging between 12 and 21 years, adding that 'they were removed from office in 2000 and 2001 under circumstances that did not allow for the payment of their respective accumulated separation entitlements.'

Board Endorsed
A press statement issued by the Ghana National Petroleum Corporation (GNPC) said the company's Board of Directors, chaired by Felix Addo of PricewaterhouseCoopers, had approved the payments of ex-gratia to the former employees.

'The Board of Directors of the Corporation, after in-depth review of the situation, concluded that the payment of the end-of-service benefits to these management personnel, who had made invaluable contributions to the development of the Corporation, is a valid obligation.  The Board took the position that meeting this obligation, however belatedly, is the right thing to do.

'The Corporation computed the amounts to be paid to each of the affected senior managers on the same basis as what has been used with respect to all staff who are made redundant or separated from the organisation.'

Other board members included Anita Lokko and Abraham Amaliba.

Amounts Paid
Even though the GNPC did not indicate in its press statement issued yesterday how much the five persons were paid, Minority Spokesperson on Energy, K.T. Hammond, who spoke to Accra-based CitiFm, said over GH¢1 million was paid each to Tsikata, Dagadu, Asafu-Adjaye while Ms Cobbah received about GH¢600,000, totalling about GH¢5 million, aside the monies paid to Cato Brown. In the case of Mr Cato Brown, it was not known how much his estate would bag.

According to Mr Hammond, the payments were totally uncalled for and just a means to dissipate the country's oil funds especially after the persons had been sacked after over 15 years.

'The place had collapsed. If it was a company, the company had collapsed. There was no money to be paid to anybody. Indeed, for running the company the way he did, Mr Tsikata would have had to account in the criminal court for what he had done.'

He added: 'You don't turn around 15 years down the line to pay these kinds of money to these people,' and Tsikata in particular 'doesn't deserve it.'

He went on to call the payment a breach of morals and legalities, referring to the Limitations Act, saying, 'Indeed if they even had rights which have been accrued, six years thereafter, those rights would have lapsed.

'Any claims that arise within a contractual relationship lapses in six years.'

Legal Opinion
DAILY GUIDE learnt that the payments did not enjoy the support of the legal adviser to the company.

Adwoa Wiafe, GNPC's head of legal, in a documented opinion dated July 30, 2015, strongly asserted that there was no legal basis for the awards, adding that 'any legal claims against the Corporation by the former employees is statute barred.'

Section 4(F) of the Limitations Act, 1972 gives up to six years for an aggrieved party to enforce an action to recover any sum recoverable by virtue of any enactment.

In the case of Tsatsu Tsikata who was virtually sacked by Jerry Rawlings in 2000, it had taken 15 years before the said ex-gratia was paid to him.

Imprudent Exercise
K.T. Hammond further complained that 'legally, there is a Limitations Act that details that any claims after six years do not hold.

'Who took the decision? Tsikata, in the first place, should not have been entitled to anything. He didn't respect the authority of the then GNPC board. He took the law into his own hands and squandered money.'

Mr Tsikata was a lawyer for the governing NDC in the election petition case against President John Mahama.

Sacked by President Rawlings
K.T. Hammond stated that Mr Tsikata was allegedly sacked by ex-President Rawlings because 'Tsikata collapsed GNPC after compounding debts upon debts. He should have been asked to face a criminal court for his actions. Is the President aware of these payments?'

He said: 'What we need to know, investigate, and indeed the probe I called for to unearth, is the basis for the payment for this individual.'

No comment
Mr Dagadu, current Deputy Minister of Petroleum, said he would not want to talk about the payments to the media because it was an old issue.

The Minority asked if such unguarded payments would inure to the economic benefit of the country.

Alex Kofi Mould is the current CEO of GNPC under whose watch the payments have been paid.

By Samuel Boadi