The proposed partnership between Tema Oil Refinery (TOR) and Torrenco Asset Management Limited (TAML) to resuscitate the ailing state-owned refinery appeared to have hit rock.
The Office of the Attorney General and Minister of Justice has raised competency doubts over Torrenco.
In a letter seen by this portal, the AG's office said its due diligence report on Torrenco "showed TAML has no financial and technical capacity to undertake the proposed lease transaction."
The letter addressed to the General Transport, Petroleum and Chemical Workers Union of the Ghana Trades Union Congress noted in part "from the DDR, TAML has no financial and technical capacity to undertake the proposed transaction."
It further pointed out that "TAML has no established affiliation with Vitol or with any other company, which has the needed funds and technical capacity to undertake the Proposed Lease Transaction and without whose support TAML lacks the financial and technical capacity to undertake its obligation under the Proposed Lease Transaction.”
The AG's office thus said it is "not in the position to vouch for the credibility of TAML as a lessee in the Proposed Lease Transaction with TOR," raising doubts over Torrenco's competency to revive the critical refinery.