Missing Funds From The 2013 Budget Statement
Mr Speaker, there are serious irregularities in the 2013 Budget Statement, which could
border on financial misappropriation, and which require immediate investigation.
1. PETROLEUM DEBT RECOVERY LEVY COLLECTED IN 2012.
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.
PRODUCT 2012 NATIONAL
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
2. THE HEDGE FUNDS
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.
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