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14.03.2013 Feature Article

Missing Funds From The 2013 Budget Statement

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Mr Speaker, there are serious irregularities in the 2013 Budget Statement, which could

border on financial misappropriation, and which require immediate investigation.

Throughout 2012, and indeed, up to date, there has been a Petroleum Debt Recovery Levy

of 8 GHp/litre on petrol, diesel, and unified; 5 GHp/kg on LPG; 3 GHp/litre on MGO local;

and 4 GHp/litre on residual fluid oil. The National Petroleum Authority has officially

provided the figures in the table below as the national consumption of petrol, diesel, LPG

and MGO. From this information, the total debt recovery levy collected for the four

products can be computed as follows:
The national consumption figures for unified and residual fluid oil in 2012 have not been

given by the NPA, hence their exclusion from the computations. Thus, the debt recovery

levy collected for petrol, diesel, LPG and MGO alone in 2012 was GH¢ 244,970,214.

Strangely, on page 276 of the 2013 Budget Statement, government has stated the amount

of petroleum debt recovery levy collected as zero Ghana cedis (GH¢0.00). This is

Mr Speaker, many of us were witnesses to the public dispute between the Minister for

Energy and the MD of TOR about the whereabouts of the petroleum debt recovery levy

collected by this government. There is the urgent need to look into the disappearance of

the petroleum debt recovery levy from the 2012 finances of the country.

Petrol 1,328,080,745 litres 8 GHp/litre GH¢ 106,246,460

Diesel 1,550,593,091 litres 8 GHp/litre GH¢ 124,047,447

LPG 265,039,887 kg 5 GHp/kg GH¢ 13,251,994
MGO 47,477,095 litres 3 GHp/litre GH¢ 1,424,313
TOTAL GH¢ 244,970,214
Republic of Ghana
Member of Parliament
Obuasi West Constituency
Our hedging programme is an insurance policy. We pay premiums so that when the price

of oil exceeds an agreed threshold, we receive some hedge proceeds into our Hedge Fund.

In 2012 we projected a receipt of GH¢55.3 million.
It is reported in paragraphs 139 and 140 of the 2013 Budget Statement that Ghana's

hedging programme was very successful in 2012 and that, we will continue with the

programme in 2013. What this report means is that we received more money into the

Hedge Fund than we paid out as premiums. The net proceeds, which is our profit, should

have gone into subsidising high fuel prices resulting from the high oil prices internationally.

But strangely, on page 276 of the same 2013 Budget Statement that reported the success

of the hedging programme, it is stated that our hedge profit was zero Ghana cedis

(GH¢0.00). How come? If the 'highly successful' hedging programme could not bring us

the target amount of GH¢55.3 million, it should, at least, have brought us something.

In any event, if the hedging programme was successful, why is the hedging proceeds not

being used to subsidise fuel prices? Why are we passing on full cost of fuel on to

We should immediately investigate the Hedge Fund to ascertain the whereabouts of the

monies that have been coming into it since it was set up by this government.

I thank you, Mr Speaker.

Ghanaian Chronicle
Ghanaian Chronicle, © 2013

The author has 1023 publications published on Modern Ghana.Column: GhanaianChronicle

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