News
Finance Ministry fails to account for ABFA for 3rd time – PIAC
The Ministry of Finance has for the third consecutive year failed to account for unutilised Annual Budget Funding Amount (ABFA) of oil revenues,the Public Interest and Accountability Committee (PIAC) has disclosed.
In its 2019 annual report on the management and use of petroleum revenues launched in Accra yesterday, the committee revealed that the amount stood at GH¢1.5 billion at the end of 2019.
The ministry was also cited for violating portions of the Petroleum Revenue Management Act (PRMA) 893 and Ghana Investment Infrastructure Fund (GIIF) Act 877.
The Chairman of the Committee, Mr Noble Wadzah has therefore urged parliament to bring its oversight mandate to bear on the ministry’s “impunity and failure for not accounting for unutilised ABFA” and other violations.
The 2019 PIAC Report covering the period January to December, encompasses issues including the management and utilisation of petroleum revenues and findings pertinent to the performance of various institutions in the sector.
It is inline of PIAC’s statutory obligation under the Petroleum Revenue Management (Amendment) Act, 2015 (Act 893), which enjoins PIAC to publish reports to keep the citizenry updated on petroleum revenue and solicit feedback.
Giving highlights of key findings of the report, Mr Wadzah said the total ABFA available for spending last year was GH¢2.7 billion out of which GH¢1.2billion was utilised leaving a balance of GH¢1.5 to be utilised and accounted for.
“For the third consecutive year, not only has a sizeable proportion of the ABFA not been fully utilised but it has not been accounted for, impeding PIAC’s appreciation of the full scope of accounting to the public on the utilisation of our petroleum revenues “, he said.
In the same period, he disclosed that 45.14 per cent of the actual ABFA was spent on recurrent expenditure, with 54.86 per cent on capital expenditure in violation of Section 8(4) (a) of Act 893 which required that a minimum of 70 per cent be spent on public investment expenditure.
Additionally, he said for the second consecutive year, “there was no allocation from the ABFA to the Ghana Infrastructure Investment Fund (GIIF), contrary to the provisions of the PRMA and GIIF Act 877.”
The PIAC report reiterated its call on Parliament to restrict portions of the Ghana National Petroleum Corporation’s (GNPC) corporate social responsibility (CSR) and guarantees to state institutions, especially since the corporation was unable to respond to some of its cash calls.
It disclosed that the corporation provided guarantees amounting to US$645.5 million to state-owned enterprises (SOEs) last year and was almost double, compared with the previous years’ guarantees while it outweighed its total equity financing expenditure of US$164.79 million for the period.
“GNPC’s expenditure on Corporate Social Initiatives (CSI) remains high, increasing from GH¢41.49 million in 2018 to GH¢49.98 million in 2019”, the report stated.
The report also asked the government to address the indebtedness of the Ghana National Gas Corporation as it was unable to pay $334.6 million worth of raw gas received from GNPC, largely due to Volta River Authority’s debt.
The report revealed that US$925.04 million was disbursed from the Petroleum Holding Fund for the period under review, constituting a decrease of 5.33 per cent from that of 2018, and 14.41 per cent less than projected for 2019.
On production, the report said, a total of 71.4 million barrels of oil was obtained from the three production fields, exceeding 2018 production by 15 per cent while gas production shot up by 85 per cent to 169,508.61 million standard cubic feet of gas.
The President of the Ghana Journalist Association (GJA) Roland Affail Monney, commended PIAC for keeping Ghanaians up to speed about the oil sector and urged it to continue living up to expectation.
Source: Ghanaian Times
Hot!
Speaker of Parliament inaugurates open Parliament Steering Committee, launches action plan
The Speaker of Parliament, Alban Sumana Kingsford Bagbin, has launched the Open Parliament Steering Committee and the Open Parliament Action Plan.
The ceremony was under the theme “Achieving Gender Equality: Action by Action.”
The Speaker highlighted the critical role Parliament plays in translating the will of the people into inclusive legislation, responsive policies, and accountable governance.
“The International Day of Parliamentarianism is worth celebrating, as it offers an opportunity not only to recognise and promote achievements in strengthening democratic governance, but also to pause and reflect on the remaining gaps in institutionalising parliamentary democracy,” he said.
He noted that the event was scheduled to coincide with the International Day of Parliamentarianism to reinforce the importance of open and inclusive governance.
The Majority Leader, Mahama Ayariga, stated that the International Day of Parliamentarianism is intended to recognise the vital role Parliaments play globally as pillars of democratic governance.
He noted that this marks the first time Ghana is formally observing the day.
“The gravity of our observance is further accentuated as we convene to witness the launch of the Open Parliament Action Plan by the Open Government Partnership Caucus,” he said.
Delivering a statement on behalf of the Minority Leader, Alexander Kwamena Afenyo-Markin, the Deputy Minority Leader, Patricia Appiagyei, described the Open Parliament Action Plan as a transformative initiative aimed at strengthening the relationship between Parliament and the public.
She said the plan represents a bold commitment to making Parliament more transparent, accessible, and responsive to the needs of Ghanaians.
The Clerk to Parliament, Mr. Ebenezer Ahumah Djietror, described the launch as a key milestone in the effort to build a citizen-focused and accountable Parliament.
He added that the International Day of Parliamentarianism is a call to action to recommit to the highest standards of public service and democratic accountability.
The inauguration was attended by a wide range of stakeholders, including the Majority and Minority Members of Parliament, members of the Open Parliament Steering Committee, the Open Government Partnership (OGP) Caucus, Parliamentary Network Africa, representatives from civil society organisations, members of the diplomatic corps, traditional and religious leaders, student bodies, the Parliamentary Press Corps, and other media partners.
Hot!
NACOC declares drug menace a national emergency
The Parliamentary Committee on Defence and Interior has paid a working visit to the Narcotics Control Commission (NACOC) to engage with its leadership and assess operational challenges hampering the fight against illicit drugs.
In a detailed presentation, Dr. Basha Ligbi, Head of the Commission’s Research Bureau, highlighted critical setbacks including broken body scanners at airport terminals, inadequate office infrastructure, overcrowded detention facilities, and deteriorating vehicles.
He also called for the Commission’s headquarters to be reclassified as a security zone, citing growing security risks due to private encroachment and nearby high-rise developments.
Director General of NACOC, Brigadier General Maxwell Obiba Mantey, described the escalating drug trade as a national emergency, warning that drug barons now rival armed robbers in threat level and are gaining influence at the highest levels.
He appealed for stronger institutional support and morale-boosting interventions to preserve the integrity of NACOC officers.
Chairman of the Committee and MP for Builsa North, James Agalga, assured the Commission of the Committee’s commitment to escalate the concerns to Parliament and engage key justice sector stakeholders to fast-track reforms in support of NACOC’s mandate.
