PIAC’s 50% nonexistent oil projects claim false – Jinapor

Former Deputy Minister of Power, John Abdulai Jinapor, has refuted claims by the Public Interest and Accountability Committee (PIAC) that 50 per cent of oil-funded projects are non-existent.

“The report is not just misleading, but a clear attempt to twist facts and to serve political parochial interest,” the Member of Parliament (MP) for Yapei/Kusawgu Constituency stated on Wednesday, 11 April 2018.

Chairman of PIAC, Dr Steve Manteaw, had disclosed at a press conference in Accra on Tuesday, 10 April 2018 that: “Six projects were inspected in the Upper East, Upper West and Northern regions [and] the findings and observations were overwhelming with 50 per cent of the projects being nonexistent.”

He added that: “Over 50 per cent of school projects inspected showed signs of serious deterioration in less than three years after completion.”

PIAC is compiling a list of what it describes as “ghost projects” and has hinted at calling upon the Auditor-General for further investigations.

A 2013 report on the management of petroleum revenues by PIAC disclosed that an amount of GHS372.07 million out of the GHS543.78million of the Annual Budget Funding Amount (ABFA) representing 68.42 per cent was spent on roads and other infrastructure.

Also, according to the report, the remaining GHS287.20million representing 35 per cent of the ABFA allocation was spread across in the energy sector, education, water, housing, security and health.

PIAC has, therefore, bemoaned the fact that officials are not punished when they misappropriate petroleum revenues.

Section 58 of the Petroleum Revenue Management Act 2011, (Act 815) (PRMA), states among others that a person who misappropriates petroleum funds, defrauds, attempts to defraud or conspires with another to defraud the public in relation to petroleum funds commits an offence and is liable on summary conviction to a fine of not less than 500 penalty units or to a term of imprisonment of not less than 15 years or to both.

However, Mr Jinapor stated: “…There are about 500 budgeted petroleum related projects in Ghana since production of Oil and Gas in 2011. The Public Interest and Accountability Committee as part of its mandate visited just 46 of these proposed project sites. It’s therefore statistically impossible to conclude that 50% of oil revenues cannot be accounted for as reported by some media houses”.



Below is the full statement issued by Mr Jinapor:

My attention has been drawn to reports in some sections of the media attributed to Dr Steve Manteaw, chairman of the Public Interest and Accountability Committee (PIAC). The report is not just misleading, but a clear attempt to twist facts and to serve political parochial interest.

The said report quotes Dr Manteaw as saying “50% of oil-money projects are missing.”

The claims made in the report are false. The facts are as follows:

First of all, the point must be made abundantly clear that budgeted projects are contingent on realisation of projected revenues.

From the 2017 budget presented by the Finance Minister, total petroleum receipts in 2016 was 49.2% below target and the budget report confirms an amount of GH¢711.1 million realised against a budget target of GH¢1,400.8 million.

Some of these budgeted projects could not commence as planned due to huge revenue shortfalls.

• For the records, there are about 500 budgeted petroleum related projects in Ghana since production of Oil and Gas in 2011. The Public Interest and Accountability Committee as part of its mandate visited just 46 of these proposed project sites.

It’s therefore statistically impossible to conclude that 50% of oil revenues cannot be accounted for as reported by some media houses.

Ghana’s total petroleum lifting proceeds and other income from inception in August 2011 to the end of December 2017 amounted to US$3,982,530,000 out of which 41% was allocated to Annual Budget Funding Amount, 31% to the Ghana National Petroleum Cooperation and the remainder to the Heritage and stabilisation funds.

Moreover, no where can this claim be found in the 2016 Public Interest and Accountability Report which was subsequently laid before parliament.

It will therefore be erroneous to conclude that half of total petroleum revenues cannot be accounted for.

•We wish to assure Ghanaians of our commitment to transparency and accountability at all time.

Thank you.
John Jinapor

Source:ClassFMonline.com