Movenpiina’s pre-incorporation contract with BOST is legal – Sekondi MP

The Member of Parliament for Sekondi, Andrew Kofi Egyapa Mercer has defended the award of contract to an Oil Marketing Company (OMC) Movenpiina to buy off-spec oil from Bulk Oil Storage (BOST) as legitimate. Speaking on TV3’s New Day, Wednesday, the MP who is a lawyer argued: “Of course pre-incorporation contracts are valid in law, [there is] absolutely nothing untoward about it at all. You can go into the licensing regimes because it’s regulated industry and all of that – that is another matter that we can discuss. But the truth of the matter is that pre-incorporation contracts are legitimate and valid.” He emphasized that a company prior to its incorporation can do business and it will be deemed legal and valid. He therefore urged the minority in parliament to stop misinforming the public. This come a day after the minority in Parliament held a press conference to address issues surrounding the sale of about 5 million liters of substandard petroleum products by the Bulk Oil Storage and Transportation (BOST) under suspicious circumstances. The NDC had among other demanded full scale investigations by the regulatory authorities and the immediate withdrawal of the “contaminated” product (oil) from the market as well as the immediate interdiction of the Managing Director of the company. However, Mr Andrew Mercer described as unjustifiable the calls made by the minority for the Managing Director (MD) of BOST to step down for investigations to be conducted. “Of course, people when they are under investigation,[and] when they are required to step aside ought to step aside or resign but until a prima facie case which requires some investigation to establish that, is made against them, you cannot call for their resignation or ask them to step aside”, he argued. Meanwhile, the National petroleum Authority (NPA) has confirmed that the two companies (Movenpiina and Zup oil) alleged to have purchased the “contaminated’ products were not licensed and that the NPA will take legal action against them.

READ ALSO:  Economy traumatized; Akufo-Addo's meeting with ministers, NPP MPs apt - Franklin Cudjoe
Read also: NPA intensifies monitoring activities over contaminated fuel By P.D Wedam || Ghana]]>