Godwin Mahama Ayaba, the Corporate Affairs Officer in charge of External Affairs at Tema Oil Refinery (TOR) Ltd, has revealed that the previous administration made attempts to sell the refinery at a “donkomi” (giveaway) price of $22 million.
According to him, the company was run down by the incompetent administration led by former President Nana Addo Dankwa Akufo-Addo.
He indicated that throughout the entire eight years of the New Patriotic Party (NPP) government, TOR did not refine a single bucket of crude oil.
He disclosed that when President John Dramani Mahama was leaving office in 2017, he handed over Jubilee crude to TOR, yet the subsequent administration could not account for it.
“For the whole eight years of the previous administration, TOR did not refine a single drop of crude oil. President Mahama, upon leaving office after his first term, handed over crude to TOR, and yet they could not account for it. Even if they sold it, they could not account for the money,” he stated.
He explained that the new measures being implemented under the current leadership at TOR are helping to stabilise fuel prices and potentially make petroleum products more affordable for consumers.
Speaking to host Kwabena Agyapong on Frontline on Rainbow Radio 87.5FM, Mr Ayaba noted that beyond pricing benefits, expanding TOR’s capacity could have broader economic implications through increased industrial activity, job creation, and a reduced dependence on imported refined petroleum products.
He revealed that the current administration took over at a time when TOR was severely struggling, amidst an attempt to sell off the facility at a giveaway price.
Godwin Mahama Ayaba stated that President Mahama, while in opposition, promised to revamp TOR if given another mandate—a commitment he says contributed significantly to his decisive victory in the 2024 elections.
He commended the current Managing Director, Edmund Kombat, and his team, stating that they have done their best to turn the company around.
He noted that TOR lacked direction under the NPP government, as the board was pursuing a completely different trajectory from that of the management and the government.
However, he emphasized that the new management has worked tirelessly to revamp TOR to the point where it has resumed refining crude locally rather than relying solely on imports, whilst also engaging in tolling arrangements.
Detailing the previous state of the refinery, he disclosed that TOR was saddled with a staggering debt profile of $517 million.
He recalled that President Mahama, during his first term, established the Energy Sector Levies Act (ESLA), through which over $300 million of legacy debt was cleared out of the total $600 million debt burden. He expressed regret that instead of further reducing the remaining $300 million debt, the NPP administration added over $200 million in fresh liabilities.
He noted that TOR became indebted to key state agencies, including the Electricity Company of Ghana (ECG), Ghana Water Company Limited, and the Ghana Revenue Authority (GRA).
The situation deteriorated to the extent that the refinery was unable to pay staff salaries and resorted to selling products belonging to some Bulk Oil Distributors (BDCs) without authorization to meet payroll obligations.
“For over six years, the collective bargaining agreement was non-existent at TOR, and salary increments stalled. Most of our engineers were leaving the country because there was no hope. Engineers and experts we had trained were leaving for other refineries abroad. The last time TOR procured operational vehicles was under the NDC administration; the NPP did not buy a single car, forcing workers to rely on outdated vehicles dating as far back as 2012,” he lamented.
He dropped a bombshell by alleging that the NPP intentionally ran down the refinery to justify selling it off for a paltry $22 million under the pretext that it was insolvent.
Mr Ayaba added that Ghanaians were fortunate the deal did not receive parliamentary approval. He stated that the NPP had hoped to win the 2024 elections to finalize the transaction, but their plans ultimately failed.
By: Rainbowradioonline.com/Ghana