Chairman of the Civil Society Platform on Oil and Gas (CSPOG), Dr. Steve Manteaw has revealed that one of several factors preventing the growth and efficiency of Ghana National Petroleum Company (GNPC) is continuous political interference and control of the entity.
In an open letter to the president of the republic, Nana Akufo-Addo, the group stated: “Though not covered in our report on the sector, we found, in the course of our analysis that, one of several factors impeding the growth and efficiency of our national oil company, the GNPC, has been excessive political interference and control of the entity. Recent example can be found in the manner in which the former government arm-twisted the corporation to provide guarantees for two floating power plants supplied by Karpower to augment national electricity generation capacity. The business case which is today cited in support of the deal was in fact, only an afterthought”.
The letter further stated that: “there is no denying the fact that GNPC holds great promise for Ghana’s quest to optimise benefits from the exploitation of its hydrocarbon resources. This makes the future of GNPC as a frontline company representing the interest of Ghanaians in the petroleum industry, something that your government would want to pay critical attention to.
Experience all over the world suggest that countries that have been able to do much with their petroleum are those who are either actively involved in the exploitation of the resources or are indirect participants through strategic share acquisitions in the companies exploiting the resources.
“We therefore take this opportunity to humbly propose that your administration considered organising a national stakeholder consultation on the future of GNPC, similar to the Oil for Development Conference organised by former President Kufuor in 2008.
The purpose would be to build a national consensus on the long term goal of the corporation, agree on a more efficient financing model, and on the required restructuring to re-position the corporation in pursuit of its long term goal.
“The restructuring, which will no doubt involve some changes in GNPC’s statute of establishment, should consider mechanisms for insulating the entity from needless and sometimes harmful political control. It should ensure that the CEO position does not become coterminus with a particular political party regime as is the case now. A policy option will be to advertise the position and appoint on the basis of technical competence, business acumen, and proven integrity”.
CSPOG proposed that appointment should be on the basis of a performance-based contract with concretely stipulated deliverables and measurable performance targets tied to negotiated remuneration.
The group added that it stands ready to engage with government, particularly the Ministry of Energy and Petroleum to discuss these matters in detail, and to support government to address these and other identified gaps as part of their support to unleash the full socio-economic potential of the industry.
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