By Abu M. Monor
In a startling revelation today, the Minority in Parliament has accused the Akufo-Addo/Bawumia-led NPP government of orchestrating a covert plan to secure a massive $431.5 million loan through the Ghana National Petroleum Corporation (GNPC) without the required approval from Parliament.
According to the Minority, this information was brought to light through authoritative documents that suggest a clandestine meeting convened at the presidency, with President Akufo-Addo himself chairing the session. High-ranking officials, including the Chief of Staff, Minister of Finance, Deputy Minister of Energy, and GNPC’s Board Chairman and Chief Executive Officer, were in attendance. During this meeting, the President allegedly instructed GNPC to secure this substantial loan from LukOil International Trading and Supply Company (LITASCO SA) for various purposes.
The allocation of this loan, as revealed by the Minority, is as follows:
US$155 million for refinancing LITASCO debt.
US$150 million to settle the Government of Ghana’s (GOG) debt to Karpower.
US$126.50 million to renew Karpower bank guarantees.
The Minority expressed deep concern over this development, viewing it as an attempt to bypass parliamentary approval procedures and violate Ghanaian laws. They noted that GNPC had previously submitted a $650 million loan request for approval as part of its 2023 Work Programme and Budget, which was yet to be fully reviewed by Parliament in accordance with Article 181 of the 1992 Constitution.
Critically, the Minority pointed out that President Akufo-Addo’s executive order to GNPC could encumber the country with another substantial loan, utilizing oil from the TEN fields as collateral for a period exceeding five years. This loan carries an interest rate of SOFR 1 Month + Margin, along with a structured fee of 2.5% flat rate.
The Minority’s apprehensions were further exacerbated by the routing of this loan through the controversial Special Purpose Vehicle (SPV) named Jubilee Oil Holdings Limited (JOHL). The government allegedly intends to rely on JOHL as a source of repayment, deviating from the established practice of utilizing proceeds from the Government of Ghana. JOHL’s previous association with questionable financial practices raised concerns among Parliament members.
Beyond the legal implications of this loan agreement, the Minority argued that this arrangement could hinder GNPC’s ability to secure funds for its primary responsibilities, including the Voltain Basin Project and fulfilling cash call obligations.
Of paramount concern to the Minority was the potential impact on Ghana’s participating interests in oil resources. They contended that this agreement could affect all interests directly or indirectly held by the Government of Ghana, including royalty entitlements. Additionally, it grants the Buyer the authority to substitute cargoes from other government-held interests should TEN field production volumes fall short of minimum requirements.
In response to these grave concerns, the Minority has called upon Civil Society Organisations and all concerned Ghanaians to unite against what they perceive as yet another instance of the Akufo-Addo/Bawumia NPP government leveraging Ghana’s oil resources for short-term gains. They emphasized that such unrestrained borrowing has already strained Ghana’s economy and should not be allowed to persist.
In the days ahead, the Minority in Parliament plans to take action, seeking accountability from government officials, including GNPC representatives, to provide necessary explanations.
John Abdulai Jinapor, MP for Yapei/Kusawgu, and Ranking Member of the Committee on Mines and Energy, delivered this statement.
This unfolding situation has generated significant public interest, and further developments are anticipated as the story develops. Stay tuned for updates as this story continues to evolve.
