GNPC defends decision to invest outside core business
The Ghana National Petroleum Corporation(GNPC) has justified its decision to invest outside its core mandate.
The corporation insists the move is only a strategic one targeted expanding the opportunities of the corporation.
The Public Interest and Accountability Committee (PIAC) in its 2016 report lashed out at the GNPC for refusing to adhere to a directive not to invest its proceed in non-core business of the industry.
In its Semi Annual Report on Management of Petroleum Revenue, PIAC bemoaned the decision of GNPC to invest in areas it has advised the corporation in the past not to invest.
But speaking with Citi Business News, the Chief Executive Officer of GNPC Alex Mould said the decision was needed to ensure the industry is well protected and reformed.
“We can't sell gas to a weak industry so we have to make sure that we are working with all the institutions that are in the reform of ECG and the power sector to ensure that happens and if that means GNPC gives its balance sheet to assist others, then yes then that means we have to. But that also means we have to have a voice in the running of the sector and the running of the organization.” he said.
He maintained that GNPC cannot detach itself from the value chain since the industry is interconnected with other industries.
“GNPC will be selling gas to all the IPP's. We will be the largest single entity in the power sector because we will be supplying gas to nearly about 80% to all electricity produce in this country. So it's important that GNPC be at the table and help in the reforms. To do that GNPC is acting as a catalyst, an enabler to assist the weaker industries in our value chain because ECG is in the value chain of gas, GNPC is disposing off gas.”
Mr. Mould however stated that the right key indicators must be proper supervision to keep companies on their toes.
“The right Key Performance Indicators (KPI) needs to be put in place so that all these companies live to their expectations and don't let us down.” He said.
Meanwhile, PIAC had also warned that the decision by GNPC to continue financing the Western Corridor Road becomes even more worrisome considering the fact that the allocation to GNPC during the period under review was not sufficient to cover even the Jubilee financing cost.
By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana