The Public Interest and Accountability Committee (PIAC) has revealed in its January-June 2020 semi-annual report that the total petroleum funds distributed since the inception of petroleum sector till end of June 2020, was US$5.32 billion.
Out of this, PIAC said, approximately 39 per cent went to the Annual Budget Funding Amount (ABFA), 31 per cent to the Ghana National Petroleum Corporation (GNPC), 21 per cent to Ghana Stabilization Fund (GSF), and 9 per cent to the Ghana Heritage Fund (GHF).
This suggests that about 91 per cent of the petroleum revenue is available for spending by the current generation, the report said.
Regarding allocation to the GNPC, PIAC said the corporation’s receipt in first half 2020 was US$80.41 million representing a 31 .25 per cent reduction from that of the same period in 2019 ,US$116,96million.
“Budgetary allocation to the GNPC Foundation decreased by 11.7per cent in 2020 as against that of 2019. However an amount of US$12.31, being financial obligations outstanding at the close of 2019, was brought forward and honoured in H1 2020.”
The Ministry of Finance has, for the fourth time, failed to release data on the Annual Budget Funding Amount (ABFA) to the Public Interest and Accountability Committee (PIAC) to enable the body add their data in the compilation of its reports on petroleum revenue utilization.
The ABFA is the statutory fund required to receive oil revenue earmarked for government expenditure.
PIAC is mandated by the Petroleum Revenue Management Act, 2011, (Act 815) to release two reports in a year, the semiannual and the Annual reports, on how the revenue generated from petroleum utilized..
Institutions such as the Bank of Ghana, the Ministry of Finance, the GNPC are required to submit to PIAC, data on the allocations made to them.
However, PIAC has revealed in its report that the Finance Ministry failed to do so for the fourth time.
This, according to PIAC, makes it work difficult and also frustrates the transparent manner in which the oil money is supposed to be utilized.
“For the fourth time, the Ministry of Finance failed to provide ABFA utilization data for the compilation of PIAC reports.
“This makes it difficult to reconcile disbursements and expenditure and undermines the spirit of accountability as envisaged in the PRMA,” PIAC said.
When asked for the reasons the Ministry gave for its inability to provide the data, at a media engagement on the report over the weekend, a Technical Manager at PIAC, Mr Mark Agyeman said “They don’t give any explanation to the reason why they fail to give the data.”
Regarding total petroleum receipts in the Petroleum Holding Fund (PHF) for the period, PIAC said it stood at US$322,671,265.64, indicating an 11.32 per cent.
“Even though the GNGC received $1.78million under the Cash Waterfall Mechanism, there was no payment to GNPC in respect of gas supplied consistently, the nonpayment of gas revenue denies the PHF of its due entitlement.
“Total petroleum funds distributed since inception till end of June 2020 was $5.32billion of which approximately 39 per cent went to the ABFA, 31 per cent to GNPC, 21 per cent to GSF and 9 per cent to the Ghana Heritage Fund (GHF).
“This suggest that about 91% of the petroleum revenue is available for spending by the current generation,” the report said.
By Laud Nartey|3news.com|Ghana
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