PIAC counters Ghana Gas criticism of 2016 annual report

The Public Interest and Accountability Committee (PIAC) says it stands by its 2016 annual report, countering concerns by Ghana National Gas Company (Ghana Gas) that sections of the annual report were inaccurate.

Ghana Gas had raised concerns that PIAC’s report which sought to suggest that the Company cannot account for $47.4million being revenue from sales of raw gas to Ghana National Petroleum Company (GNPC) was misleading.

Ghana Gas also declared as incorrect PIAC’s report that the Volta River Authority (VRA) owes it $434million, stating that the figure was much higher.

The national gas company had stated that as at May 31 this year, VRA was indebted to the company to the tune of $534.2million.

Related: Ghana Gas says reports on PIAC findings misleading

However, in response to Ghana Gas’ concerns, PIAC said the purported figure of $534.2 million representing Ghana Gas' outstanding receivables from the VRA as at May 31, 2017, failed to take cognisance of the fact that the period covered by PIAC’s statutory 2016 Annual Report: from January to December 2016 for which period the figure amounted to $434.70 million.

PIAC insists that the figure it quoted as receivables for Ghana Gas was not for the period up to 31st May 2017 but from January to December 2016.

“Thus, the Public Interest and Accountability Committee (PIAC) wishes to categorically put on record that the information as contained in its 2016 report is accurate”, the statement signed PIAC Chair, Joseph Winful, defends.

Read PIAC’s full response below.
RE: RESPONSE TO GHANA NATIONAL GAS COMPANY’S STATEMENT ON PIAC’s 2016 ANNUAL REPORT

The Public Interest and Accountability Committee (PIAC) has taken cognisance note of a statement released by the Ghana National Gas Company (GNGC) and signed by its Corporate Communications Manager, Mr Ernest Kofi Owusu-Bempah Bonsu on the 19th of June, 2017 in response to media reports on PIAC’s 2016 Annual Report which was launched on the 15th of June 2017.

The GNGC statement indicated that the indebtedness of Volta River Authority (VRA) to GNGC amounting to US$434.70 million as at the end of December 2016 as reported by PIAC was incorrect. GNGC also stated the actual figure as US$534.2 million representing Ghana Gas’s outstanding receivables as at 31st May 2017. The Committee wishes to refute this misleading representation by GNGC.

A purported figure of US$534.2 million representing Ghana Gas’s outstanding receivables as at 31st May 2017 was also quoted in the Ghana Gas in putting out this statement failed to take cognisance of the fact that the period covered by PIAC’s statutory 2016 Annual Report: from January to December 2016 for which period the figure amounted to US$434.70 million as accurately reported by PIAC, and not for the period up to 31st May, 2017 as represented by GNGC.

Thus, the Public Interest and Accountability Committee (PIAC) wishes to categorically put on record that the information as contained in its 2016 report is accurate.

The facts are; on page 56 under findings 3 and 4 in PIAC’s 2016 Annual Report:

Finding 3: ‘’GNGC’s outstanding receivables as at the end of 2016 stood at US$456.22 million, with VRA alone responsible for 95% (US$434.70 million) of its receivables’’.

Finding 4: ‘’VRA’s indebtedness to GNGC grew by approximately 91% during the period under review, rising from US$227.78 million in 2015 to US$434.70 million in 2016’’.

Ghana Gas also alluded in its statement to media reports about a missing amount of US$47.4 million as revenue from the sale of raw gas which GNGC cannot account for. PIAC wishes to clarify that on Page 31, Table 16 of its 2016 Annual Report, the total revenue from Jubilee gas exports in 2016 amounts to US$66.33 million out of which US$9.35 million was paid leaving a balance of US$56.79 million.

The Committee would like to place on record that PIAC makes its reports based on information and data requested and received from stakeholder institutions, including Ghana National Gas Company (GNGC), Ministry of Finance (MoF), Ghana National Petroleum Corporation (GNPC), Petroleum Commission (PC), Ghana Revenue Authority (GRA), Bank of Ghana (BoG) and the Ghana Infrastructure Investment (GIIF). The draft report is further validated with all these stakeholders at a meeting and a copy of the draft report given to them for comments before publication. We expect that GNGC would take steps to correct the misrepresentation and verify their own data which was submitted to PIAC for the 2016 Annual Report.

SIGNED
Mr Joseph Winful,
Chairman, Public Interest and Accountability Committee (PIAC)

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