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Company News of Wednesday, February 20, 2019
Source: citinewsroom.com
2019-02-20
ACEP says GNPC spends $ 20 million on operations in Voltain Basin
The African Center for Energy Policies (ACEP) is not satisfied with the plans of the Ghana National Petroleum Corporation (GNPC) to spend about $ 43 million for corporate social responsibility and less for its operational functions.
According to ACEP, GNPC spends $ 20 million on its operations in the Voltain Basin, which is less than 50% of the amount spent on CSR programs.
"The company plans to spend $ 43.05 million in corporate social responsibility for the 2019 operating year.
ACEP stated that similar high levels of corporate social responsibility spending is particularly worrisome, especially when compared to "GNPC's operating expenses beyond the traditional cash spot in producing fields".
"In 2019, GNPC proposes to spend US $ 20.3 million for its operations in the Volta Basin and its affiliates in the area. That's less than 50% of what GNPC wants to spend on CSR, "said the energy policy think tank.
ACEP expressed its concerns in a detailed badysis of the GNPC work program for 2019.
ACEP noted that GNPC has recently become more popular in carrying out development projects than its core mandate.
"Although the GNPC, like any business, has a responsibility to society, it's rare that a healthy company spends more than 10% of its cash (without profit) on corporate social responsibility. The company's CSR expenditures become deeper when its CSR budget is compared to the budgets of some critical departments. "
In its badysis, ACEP stated that the company's CSR budget accounted respectively for 2819%, 270%, 240%, 629% of the investment budget of the Ministries of Justice and Attorney General, Energy , Agriculture and Finance.
"Compared to the total budget of the mentioned ministries, the GNPC CSR budget represents respectively 210%, 254%, 47% and 65%," added ACEP.
In the document quoted by citinewsroom.com, ACEP urged Parliament not to approve the GNPC CSR budget.
"Parliament should not approve any CSR budget for the Company before the end of the 15-year funding window in the PRMA. This should free up funds to enable the Company to fulfill its fundamental oil-player mandate upstream, "ACEP recommended.
Grbad war at the GNPC
GNPC has recently made news headlines about a turf war between General Manager, MKK Sarpong, and Chairman of the Board, Freddie Blay, about duties. purchase of the company.
K. K. Sarpong was charged with attempting to badume the purchasing function of the Company's Chief Financial Officer.
But Freddie Blay, chairman of the GNPC board of directors, has been pressuring Dr. K. K. Sarpong so that he reverses the decision with immediate effect.
Nana Addo should call K.K. Sarpong, Blay in order – IES
The Institute for Energy Security, a policy think-tank, had also asked the President, Nana Akufo-Addo, to call the President of the Governing Council and the Director-General back to order. from the Ghana National Petroleum Corporation (GNPC).
Civil society believes that these frictions affect the proper functioning of the national oil company.
IES Executive Director, Paa Kwasi Anamua-Sakyi, who spoke with Citi News, said the problems with the GNPC could affect investments in Ghana and need to be resolved as soon as possible.
"It is important for the president, who has the power to appoint senior staff in these functional areas, to step in and put an end to this process, as this may deter investors. It is therefore important that the number one country make a statement on this. bring these two gentlemen back to order, "he added.
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