The Minister of Petroleum, Emmanuel Armah Kofi Buah has hinted to Citi Business News that government was in the process of settling all the debts owed the Ghana National Gas Company by the end of March 2016.
According to him, a new debt restricting plan has been put in place which will ensure full payment of outstanding debts owed by the Volta River Authority (VRA).
Citi Business News has gathered that the VRA owes Ghana Gas an outstanding debt of about 200 million dollars.
In an interview with Citi Business News at the inauguration of a new five member board for the Ghana National Gas Company, Emmanuel Armah Kofi Buah who expressed confidence in the capability of the new board, charged them to restrict itself to issuing broad policy guidelines, and ensure efficient management of resources to achieve approved targets.
“I have already hinted them that the government of Ghana is very concerned about the debt owed Ghana Gas and has taken steps to pay off the debt by supporting VRA to clear all those legacy issues that are really putting a hurdle on their way,”
“But more importantly,going forward, they have to put in all that systems that allow Ghana Gas to operate a modern business as we can’t supply gas that is not paid for and the board must put systems in place as that is their responsibility. So they have to draw that balance knowing how critical this is as they have to be able to pay GNPC for them also to pay the upstream producers.” Mr. Armah Buah said.
“We have entered a gas era and we can’t carry the old legacy debts with us definitely no we must resolve it to allow the utilities to stand allow as we have to forget about hydro era to concentrate on this gas periods making sure that all of us play our parts to make sure we don’t accrue any debts again,” the Minister further intimated.
The new board of Ghana Gas being chaired by a chartered accountant and management consultant, John A.Y. Klinogo, promised to work hard to lay a firm foundation for the successful implementation of strategies to make Ghana Gas viable and debt free.
“We have an objective which is to serve the people and ours is to strategies to see how we can make the company viable. Naturally there will be constraints particular this being a new industry, there will be challenges but what I can say is that the product is needed and we will do all we can to make this company is paid its debts.” John A.Y. Klinogo stated.
The other members are Alex Kofi Mansah Mould -Chief Executive Officer of GNPC, Dr. Sipa Yankey- current CEO of Ghana National Gas Company, Vivenne Gadzekpo- Director of Legal Ministry of Petroleum and Awulae Amihere Kpanyinli- the paramount chief of Eastern Nzema Traditional Areaa, Atuabo.
By: Norvan Acquah –Hayford/citibusinessnews.com/Ghana