REQUEST FOR INVESTIGATIONS INTO REPORTED PETROLEUM PRODUCT SMUGGLING, RE-EXPORT AND PREMIX DUMPING, UNLAWFUL PROFITEERING, TAX EVASION AND FINANCIAL REPORTING INCONSISTENCY AT BOST.

July 13, 2018

The Chief of Staff,
Office of the President of the Republic of Ghana
Jubilee House,
Accra.

Dear Madam,

REQUEST FOR INVESTIGATIONS INTO REPORTED PETROLEUM PRODUCT SMUGGLING, RE-EXPORT AND PREMIX DUMPING, UNLAWFUL PROFITEERING, TAX EVASION AND FINANCIAL REPORTING INCONSISTENCY AT BOST.

OccupyGhana®️ has received and studied the 2017 industry report of the Ghana Chamber of Bulk Oil Distributors (CBOD). The report, which we believe has been submitted to the Offices of the President and Vice-President as well as Parliament alleges over a dozen infractions and breaches of the law by, and indicts unnamed officials of National Security, the Ghana Revenue Authority (GRA) and the Office of the President.

We note with concern the alleged revenue losses amounting to GHS 1.4 billion in the loss of over 800-thousand metric tonnes of subsidized fuel. If true, this is completely unacceptable. Also worrying is the allegation that about GHS 5.2 million was lost to the National Petroleum Authority (NPA) from diversions of 230 illegitimately subsidized premix trucks.

The CBOD alleges losses due to increased smuggling activities along our coasts, under-invoicing, illegal tax and regulatory margins, ESLA under-reporting, Special Petroleum Tax (SPT) transfer pricing, deliberate inefficiencies and illegalities at BOST, unlawful profiteering, tax evasion and export dumping. But what we find even more troubling is the claim that these are happening with the connivance and complicity of officials in the Office of the President, in National Security, and in GRA.

In the interest of the principles of probity, accountability and transparency, we write to request that full scale criminal and highly forensic investigations are conducted into the alleged findings in the CBOD Report. If any persons are found to have engaged in these acts we would urge the prosecution of all criminally culpable elements within the petroleum value chain to the full extent permissible by law, no matter who these culpable elements may be.

Yours faithfully,

D. Kwaku Segbefia,
For: OccupyGhana®️

Cc:
1. Office of the Vice-President
Jubilee House
Accra

2. The Speaker
Parliament of Ghana
Accra

3. The Minister
Ministry of Energy
Accra

4. The Chief Executive Officer
National Petroleum Authority
Accra

OccupyGhana® Supports Formation Of Ministerial Committee With An Expanded Mandate To Investigate All Sales Of Allegedly Contaminated Products By BOST

OccupyGhana® Supports Formation Of Ministerial Committee With An Expanded Mandate To Investigate All Sales Of Allegedly Contaminated Products By BOST

5th JULY, 2017

OCCUPYGHANA® PRESS STATEMENT

OCCUPYGHANA® SUPPORTS FORMATION OF MINISTERIAL COMMITTEE WITH AN EXPANDED MANDATE TO INVESTIGATE ALL SALES OF ALLEGEDLY CONTAMINATED PRODUCTS BY BOST

OccupyGhana® has been observing with keen interest, the matters and issues arising from the sale of some fuels by the Bulk Oil Storage & Transportation Company Ltd. (BOST), a company owned by the Republic of Ghana.

We were happy to wait for the results of the Ministerial Committee that was announced to investigate the matter, before making our comments public. That is why we want to place on record our objection to any person or institution trying to short-circuit, prejudge and prejudice the work of the Committee, even before it is formed.

Our attention has been drawn to what purports to be a report by the Bureau of National Investigations (BNI). The alleged report apparently attempts to absolve some key and critical actors in the matter. Had the alleged BNI Report simply set out facts that had come to its knowledge in the course of its investigations, OccupyGhana® would have had no quarrel with it. But, it appears that the BNI went further than that when it began to express opinions as to who is or is not culpable in the matter. We are vehemently opposed to that.

We insist that the work and the mandate of the Committee should continue, and that the alleged report at best be considered as one of the materials that the Committee may consider, and with liberty, based on evidence that it might recover, to agree or disagree with what is contained in the BNI Report.

We say these because this BNI Report is so deficient in several, material ways and leaves so many questions unanswered that it is difficult to agree with several of its opinions and conclusions.

Some of these questions are as follows:

  1. Who purchased and imported the product into Ghana, and from whom?
  2. How much was paid for it?
  3. Who was in charge of holding or storing the product until it was sold or otherwise disposed of?
  4. Under what circumstances and under whose control did the product become “contaminated”?
  5. Exactly how did the “contamination” happen?
  6. Exactly when did the “contamination” happen and/or when was it discovered?
  7. Was the product “contaminated” through negligence, criminal activity or any other illegal or wrongful act, and if so, who was responsible for it?
  8. Were there any remedial measures that could have been taken to “un-contaminate” or purify the product apart from selling it in the “contaminated” state, and if so were those measures feasible?
  9. Did BOST obtain the technical report that is a mandatory requirement for disposal of property under section 83(1) of the Public Procurement Act, 2003 (Act 663), and if so, who prepared that report and what did it say?
  10. Did BOST convene a Board of Survey to report on the product, and if so, did that Board recommend the best method of disposal of the product?
  11. Did the relevant BOST officer complete a Board of Survey Form, and if so, what did the Form say?
  12. Were the Board of Survey’s recommendations, if any, approved by the head of BOST, and if so, when?
  13. If the cause of the “contamination” was other than “wear and tear” (to the extent that this term may even be applicable to the product in question), what procedure was established by the Board of Survey for handling any losses, and to what extent was that procedure followed before the product was disposed of?
  14. Did the disposal of the product comply with the relevant portions of section 84 of Act 663, particularly by public tender to the highest bidder or by public auction, each being subject to reserve price?
  15. Which entities submitted bids or participated in the auction, and how much did each bid?
  16. Was due diligence conducted on those entities to, at the very least, ascertain (i) if they had been duly formed or incorporated, (ii) who were the human players behind those entities, and (iii) whether the entities are duly registered by the National Petroleum Authority to engage in that business?
  17. Was the Board of Directors of BOST involved in this transaction at all, and if so what do the relevant Board minutes say?
  18. If any of the provisions and procedures under Part VII of Act 663 were not followed, what steps are being taken to exact the civil and criminal sanctions prescribed by that Act for its breach?
  19. Has Ghana suffered any financial loss from this transaction, and if so, are there grounds to charge anyone with the offence of “causing financial loss”?

Any report on this matter, including the BNI Report, which does not raise or even answer any of these relevant legal questions is not worthy of any serious consideration. We fully expect that these, among several others, are what the Committee will deal with and address in the course of its investigations.

It is on these grounds that, first, we urge the Committee to be fully composed forthwith and for it to commence its work. Second, we will urge the Committee and its members (when constituted) to be independent, to be completely unfazed by any reports of any other institutions or persons, and to resist any attempts to allow such reports to influence its work. Third, we place on record our opposition to any attempt to restrict or limit the Committee’s mandate or terms of reference. Fourth, it is our considered opinion that the Committee’s mandate should be extended to cover and investigate all similar transactions that have occurred since BOST was formed.

OccupyGhana® wishes to state, in conclusion, that we expect the highest form of professionalism and respect to be given to Ghanaians, particularly by state institutions paid and supported with our tax monies to work for us and to protect our interest(s). We call on all, particularly state institutions and their employees, to always remember the duty that is placed on “every citizen” by Article 41(f) of the Constitution “to protect and preserve public property, and expose and combat misuse and waste of public funds and property.” We are all bound by this constitutional obligation in all such situations because, “it is not merely of some importance, but of fundamental importance that justice should not only be done, but should MANIFESTLY and UNDOUBTEDLY be seen to be done.”

Yours, in the perpetual Service of God & Country

OccupyGhana®