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RADP / Pulse Ghana  >  news  >  business

GNPC accused of causing financial loss to the state

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The Committee found that a minimum of US$ 37,129 being 3% of revenues ought to have been paid by Saltpond Oil Production Company Limited (SOPCL) as royalties to the state.

 
 

In its 2015 annual report, PIAC cited the GNPC for failing to claim royalties payable to the state amongst other things.

The Committee found that a minimum of US$ 37,129 being 3% of revenues ought to have been paid by Saltpond Oil Production Company Limited (SOPCL) as royalties to the state.

By way of explanation, the Ghana National Petroleum Corporation reported to the Ministry of Finance that SOPCL had not paid any royalties because the company was not profitable at the time.

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READ MORE: GNPC, BOG exposed in 2015 PIAC Report

However, Dr. Steven Manteau believes it is unlawful. According to him, mining companies are not exempted from paying royalties based on their profitability.

“Companies are not supposed to be exempted from paying royalties based on their profitability. According to the country’s mining laws all companies are required to pay royalties once they are doing exploration”, Dr. Manteau told Accra-based Citi Fm.

Dr. Manteau on this basis described the justification by the GNPC as unacceptable because royalties are about production not about profits.

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