Stop lending to government - PIAC tells GNPC

The Public Interest and Accountability Committee (PIAC) has cautioned the Ghana National Petroleum Corporation (GNPC) against continuously lending to the government.

It follows failure by the governments to settle the 318.09 million dollars owed the cooperation.

The Chairman of PIAC, Prof Kwame Adom Frimpong speaking at a forum on the 2021 PIAC annual report said the inability of the government to service the debt is hindering operations of GNPC.

“PIAC calls on GNPC to double up efforts at recovering loans to government and its agencies to ensure that corporations work programs does not suffer from non-implementation”

He adds that GNPC’s budget for the year under review was hugely disrupted because it estimated that the government was going to at least pay part of the debt.

“In 2021 GPNC could not realize its budgeted revenue from loans and guarantees, which amounted to 136.68 million out of the accumulated total of 31809 million owned by the cooperation by government and its agencies since 2011.

“The government as at 31st December was owning GPNC 318.09 million US Dollars that was the total indebtedness next to GPNC by the government and because of that GPNC budgeted that they are going to receive 126.68, where are they going to receive it they guaranteed some loan, they made some guarantees loans and then some loans given to government.

“So they were thinking that out of the 318.09 they will receive 126.6 million USD but this could not be materialize and nothing came So amount is still outstanding,”

PIAC is recommending that GNPC desists from lending to the government until substantial part of the debt is recovered.

“For now GNPC should discontinue granting loans and guarantees until significant recoveries are made in respect to outstanding loans and guarantees owned by the cooperation” PIAC added.