Below Standard Allow full-scale investigation into contaminated fuel sale – ACEP tells BOST CEO

In a statement issued by ACEP, it said there must be an independent investigation launched by the government to find the truth or otherwise in the allegation.

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Executive Director -ACEP, Benjamin Boakye play

Executive Director -ACEP, Benjamin Boakye

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The Chief Executive Officer of the Bulk Oil Storage and Transportation Company Limited (BOST), Alfred Obeng must step aside for a probe into the alleged sale of contaminated fuel.

This is according to energy think-tank Africa Centre for Energy Policy (ACEP).

In a statement issued by ACEP, it said there must be an independent investigation launched by the government into the matter.

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“The government should conduct a full-scale investigation into the sale of the off-spec product to establish the validity or otherwise of the transaction and provide sanctions to those found to have misconducted themselves. The Head of BOST should step aside immediately to allow the independent enquiry to occur unimpeded.”

Ghana allegedly lost about GHc 7 million in revenue following attempts by the Bulk Oil Storage and Transportation Company Limited (BOST) to sell contaminated fuel to some oil marketing companies.

Some documents sighted by Accra-based Citi FM showed that BOST agreed to sell about GHc 5 million litres of the contaminated fuel to Movenpinna Energy.

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The documents indicated that as at Wednesday, June 21st, 2017, BOST had agreed to sell off an estimated 186,000 litres of contaminated fuel to the oil company.

However, BOST has responded that the selling of contaminated or off-spec product to the oil company, Movenpina was the most appropriate option available.

“The first option is to have a corrective treatment of the off-spec product at TOR but this option was however not possible because TOR is not refining at the moment.”

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“The second option was to gradually inject a total of about seventy thousand (70,000) litres of the off-spec product into ten million litres (10,000,000) of normal product over a period which will take about ten (10) solid months for BOST to accomplish. The implication of this option is, however, the opportunity cost of losing the commercial value of over five million and seven hundred thousand Ghana Cedis (GHS 5,700,000). This arrangement would have deprived the BDCs of getting space to store their products. The capacity of the tank holding the off-spec product is twenty million litres (20,000,000 lts).”

“The third option involves the selling of the off-spec product at a competitive ex-depot price. Comparatively, the possible revenue loss here cannot outweigh the loss in Option 1 and 2.”

The statement then indicated that: “clearly, OPTION 3 was the ideal from a business point of view.”

Read the full report here: Prosecute officials of BOST over contaminated fuel – COPEC

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