29.08.2023 Rejoinder

Energy Ministry Debunks IMANI & ACEP’s Claims of Wrongdoing on the Part of Minister in GNPC/GENSER Deal

By Richard Obeng Bediako || Contributor
Energy Ministry Debunks IMANI  ACEPs Claims of Wrongdoing on the Part of Minister in GNPCGENSER Deal
29.08.2023 LISTEN

The Ministry of Energy is debunking claims in a report authored by the Africa Centre for Energy Policy (ACEP) and IMANI Center for Policy & Education regarding an enquiry report by the Parliamentary Select Committee on Mines and Energy pertaining to the Gas Sales Agreement between the Ghana National Petroleum Corporation and Genser Energy Ghana Limited.

The ACEP and IMANI in their report, among others accused the Energy Minister, Dr. Matthew Opoku Prempeh for inconsistencies, when he appeared before the Parliament’s Select Committee on November 24, 2022.

In a swift rebuttal, the Ministry states that, it would ordinarily not respond to the two organizations especially as it does not speak for the select committee and the report is directly in relation to that of same.

The Ministry says it however finds it needful to respond to portions of the report that relates to false accusations of wrong doing by the two organizations on the part of the Energy Minister.

In explaining the statement by the Minister that the Ministry was not aware of the gas price negotiated between Genser and GNPC, the statement said the Hon. Minister indicated that the Ministry is not a party to the Contract and therefore could not speak to the detail pricing components off-head, especially when the matter as at the time was in court.

“He however, informed the Committee that upon a written formal request, the Ministry will assist in providing the details of the contract, as well as any other issue of importance to the Committee” it said.

On the issue of the Committee’s claims during the hearings that Genser was given DIDT status by the Ministry of Energy, the Ministry said Genser was first issued a DIDT by the GNGC in 2017.

Subsequently DIDTs were issued by the Ministry to other industrial customers (ceramic manufacturing companies) as an incentive to boost gas consumption in the period of excess gas with the associated take or pay commitments.

“However, it must be made clear that the DIDT policy predates the assumption of office of the current Energy Minister, Dr. Matthew Opoku Prempeh, who has since advocated for the removal of the DIDT policy” the statement read. “The Ministry states unequivocally that, in as much as it has oversight responsibility over energy sector institutions, it is not obliged to meddle in direct contract negotiations between the sector institutions and potential investors unless, the Ministry’s assistance is expressly sought.

The Energy Minister must therefore, be understood within this context” it said.

The statement further implored the discerning public to disregard any attempt to soil the reputation of the Energy Minister whose major preoccupation since assuming office has been to bring to the barest minimum disruptions in power supply and improved resilience of the energy sector.

Read the full statement below