The Managing Director of the Tema Oil Refinery (TOR), Edmond Kombat, has painted a grim picture of the state of the national refinery upon assuming office in January 2025, describing an entity burdened by colossal debt, operational collapse, and severe financial irregularities.
Speaking at the Government Accountability Series, Mr Kombat disclosed that the refinery had accumulated staggering losses of approximately GH¢10 billion, with its overall debt ballooning from 300 million in 2016 to US517 million.
By the end of 2024, the state-owned institution was saddled with negative equity standing at GH¢7.6 billion, pushing the facility to the brink of being leased or sold for a paltry $21 million.
The operational core of the plant had virtually ground to a halt years before the current management took over.
The Crude Distillation Unit (CDU) had been dormant since April 2021, whilst the Residue Fluid Catalytic Cracking (RFCC) Unit had remained shut down since 2019.
Lacking essential maintenance, the strategic national asset had effectively been reduced to a commercial storage rental facility for petroleum service providers rather than executing its primary mandate of refining crude oil.
Infrastructure across the plant had suffered extensive deterioration, with 18 of the refinery’s 59 storage tanks completely out of service, some dating as far back as 2004.
Governance and accounting standards had similarly collapsed, as TOR failed to produce audited financial statements for six consecutive years between 2019 and 2024.
Financial obligations to statutory bodies and utilities had also reached critical levels.
The enterprise owed GH¢200 million to the Ghana Revenue Authority and GH¢20 million to SSNIT, along with substantial debts to the Electricity Company of Ghana and the Ghana Water Company.
Unfulfilled obligations to the staff provident fund, retirees, and former employees totaled GH¢190 million, alongside debt liabilities to commercial entities and state institutions, including the Ghana National Petroleum Corporation and the Volta River Authority.
In a crucial disclosure, Mr Kombat revealed that between 2019 and 2024, previous management secretly sold third-party petroleum products valued at millions of dollars belonging to three bulk distribution companies to fund staff salaries without the consent of the owners.
The internal crisis heavily impacted staff morale and operations, leaving the workforce deeply divided. Over 300 employee petitions regarding delayed promotions—some lingering for a decade—remained unaddressed as technical staff continuously departed the distressed refinery.
By: Rainbowradioonline.com/Ghana
