NPP Germany Raises Red Flag Over GNPC 1 Billion Dollar Loan

The chairman of the New Patriotic Party in Germany, Mr Alhassan Yakubu Tali has questioned the rationale behind the 1 Billion Loan facility secured by the Ghana National Petroleum Company from the Frankfurt-based Deutsche Bank.

Speaking on Obaapa Radio, Mr. Tali explained that apart from the questionable circumstances under which the loan facility was secured, there are also several issues involved including the requirement that such loans must of necessity receive parliamentary approval.

Mr. Yakubu Tali who is an International Investment Banker pointed out that the terms of repayment within a five year period are rather harsh and out of the ordinary by all International Standards and acceptable practice adding that the repayment of the loan over the stipulated period (5-years) in effect mortgages Ghana's share of the oil production for the next five years.

According to him, what makes the contract more dangerous for Ghana is the fact Ghana's oil is being used not only for repayment but as collateral even though Sinopec of China already has priority access to Ghana's oil due to the 1 Billion Dollar Credit facility for the long delayed Atuabo Gas Project.

Mr. Yakubu Tali explained that monies allocated to the GNPC totaling $200 million to undertake its operations still remains to be utilized hence it does not make good business sense to borrow at such high cost when the company could have fallen on its own resources for the so called projects it intends to undertake.

He noted that the lack of clarity as well as the vagueness of the transactions raises serious questions about the real purpose and intentions of the GNPC and said Ghanaians must demand answers from the company through their elected representatives in Parliament.

Asked what can be done, Mr. Yakubu Tali revealed that a Team of Germany-based Ghanaian Lawyers consulting with management of Deutsche Bank to explain the legal implications of going ahead with the contract without parliamentary approval.

Mr. Yakubu Tali further disclosed that other Ghanaian groups and associations based in Germany are also in the process of making representations to Deutsche Bank with the view to urging the bank to reconsider the Loan facility.

He therefore appealed to Deustche Bank to listen to the concerns of Ghanaians but if the Bank refuses to do so and puts its profits before and above our national interest, Ghanaians in Germany will be left with no option than to embark on mass action to draw public attention to the issue.

Mr. Yakubu Tali also called on the Parliament of Ghana to as a matter of urgency invite GNPC to come and explain to the people of Ghana the legal basis and economic justification for contracting the loan facility.

Communication Team
NPP-Germany