Gov’t’s heavy indebtedness to GNPC risks collapsing oil company – PIAC warns

The Ghana National Petroleum Corporation (GNPC) faces a looming threat to its survival, as government indebtedness to the Corporation mounts, according to a report by the Public Interest and Accountability Committee (PIAC).
The report highlights that as of the end of 2022, the government owed GNPC a staggering $1.14 billion.
This debt encompasses payments made on behalf of the government, state-owned enterprises (SOEs), national and local projects, as well as gas supplied to the Ghana National Gas Company (GNGC).
PIAC raises concerns about GNPC's expenditure, which extends beyond its core mandate, hindering its ability to function as an autonomous commercial entity in the petroleum sector.
Substantial sums, such as $124.66 million, were spent on Gas Enclave roads in the Western region, often at the behest of the government and other entities, diverting resources from GNPC's primary responsibilities.
PIAC warned that GNPC faces a precarious future post-2026 when it will cease to receive funding from the Petroleum Holding Fund as per the Petroleum Revenue Management Act (PRMA).
The Corporation may struggle to survive without this financial support, given its existing challenges.
Political influence poses another significant risk to GNPC, compelling it to engage in quasi-fiscal expenditures and extend advances to other state-owned entities, encroaching upon central government prerogatives.
To mitigate these issues and ensure GNPC's sustainability, PIAC recommends several measures. Firstly, GNPC should prioritize its mandate and development by refraining from making payments on behalf of the government and retrieving owed funds expeditiously.
Additionally, the Corporation should cease funding external programmes and projects at the request of other agencies.
Source: Classfmonline.com
Trending News
A/R: Military personnel accused of assaulting civilians in Kumasi ‘placed under close arrest’ – GAF
23:45New dawn for GRASAG as Jimmy Mawuse Adangbe takes over
00:43KATH pledges to resolve water crisis affecting surgeries
15:42Ghana, IMF begin 4th review mission amid economic reforms
21:48ACEYE's 2025 IGIPTEP outlines top performing gov't institutions, Interior Ministry leads
03:15Veep launches book on Ephraim Amu’s legacy
15:34A/R: Matthew Opoku Prempeh donates to Adum Blue Light Market fire victims
19:54Early learning Breakthrough: New study reveals a scalable path to delivering quality early learning to every child
02:06Parliament approves GH¢4.44 billion for local Gov't Ministry
15:17Clement Kwesi Abekah Baah best candidate to lead Gomoa East as MMDCE-NDC grassroot supporters
19:55