Contaminated Fuel Energy Ministry to set up c’ttee to investigate BOST dirty fuel sale

In a statement signed by the Energy Minister Boakye Agyarko, the committee is expected to among other things “determine the circumstances that created the off-spec product.”

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The Energy Ministry has indicated that it will set up an eight-member committee to investigate the controversial sale of 5 million litres of contaminated fuel by the Bulk Oil Storage and Transportation (BOST).

In a statement signed by the Energy Minister Boakye Agyarko, the committee is expected to among other things “determine the circumstances that created the off-spec product.”

The committee will also ascertain if the product can be corrected, if not determine the alternative use for the product and further review the transaction.

READ ALSO: BOST boss must be interdicted - Minority

The stament also added that “BOST has so far evacuated a total of 471,000 litres of the said product and has currently suspended evacuation in compliance with NPA instructions.”

The Ministry has also received the report from the preliminary investigations conducted by the National Petroleum Authority (NPA).

According to the NPA the two companies, Zup Oil and Movenpinaa Energy, were unlicensed. This means they did not have the right to undertake any commercial activity in the downstream petroleum industry, per section 11 of the National Petroleum Authority Act, ACT 691, 2005.

READ ALSO: Gov’t to launch investigation into contaminated fuel saga

The NPA has indicated that it will take legal action against the two firms.

Ghana lost about GHc 7 million in revenue following attempts by BOST to sell the contaminated fuel.

Meanwhile African Center for Energy Policy (ACEP), has asked that the BOST MD steps aside for a full probe into the matter.

READ ALSO: BOST defends sale of ‘contaminated’ fuel to oil company

However, BOST has said that the contaminated fuel controversy is a ploy to hide the financial rot supervised by the immediate past BOST Managing Director, Kingsley Kwame Awuah-Darko.

Find below the full statement on the matter

MINISTRY OF ENERGY STATEMENT ON BOST OFF-SPEC FUEL ISSUES

Wednesday, June 28, 2017

The Ministry’s attention has been drawn to the various media reports on the issue of the release of 5 million litres of off-spec fuel from the Accra Plains Depot of the Bulk Oil Storage and Transportation Company (BOST). We have also received a report of the preliminary investigations conducted by the National Petroleum Authority on the issues. We note that BOST has so far evacuated a total of 471,000 litres of the said product and has currently suspended evacuation in compliance with NPA instructions.

We wish to assure the general public, that the Ministry is determined to ensure that the integrity of the quality of petroleum products supplied in the country is protected. In view of this the ministry is in the process of setting up an 8 member investigative committee into the matter. The Terms of Reference of the Ministerial committee include but will not be limited to the following

  1. Determine the circumstances that created the off-spec product

  2. Review the procedures undertaken by BOST to evacuate the product

  3. Ascertain the quality and remaining quantity of the product

  4. Determine if the product can be corrected, if not determine the alternative use for the product

  5. Review the transaction

The committee will be made up of representatives of:

  • National Petroleum Authority (NPA)

  • Tema oil Refinery (TOR)

  • Ghana Standards Authority (GSA)

  • Bureau of National Investigations

  • Chamber of Bulk oil Distributors

  • Association of Oil Marketing Companies

  • Energy Commission

  • A representative from the relevant Civil Society Organizations

The committee is expected to advise the Ministry on the necessary technical, administrative and legal actions to be taken.

SIGNED

BOAKYE AGYARKO

MINISTER

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