By: Franklin ASARE-DONKOH
The members of the Minority Caucus in Ghana’s Parliament have cautioned the Akufo-Addo-Bawumia-led government to halt its plans to collateralize the TEN oil field for a $431 million loan facility from LITASCO.
The Minority Caucus explained that the arrangement to collateralize the TEN oil field for a $431 million loan facility from LITASCO is illegal.
Speaking to some Journalists on Wednesday, September 20, 2023, the Ranking Member on the Parliament’s Mines and Energy Committee, Mr. John Jinapor, hinted that despite Parliament’s rejection of the Ghana National Petroleum Corporation’s (GNPC) request to secure the loan until the terms and conditions of the agreement were provided, the presidency has directed GNPC to seek board approval for the loan without parliamentary consent.
“To our utmost shock, the minority side has become aware that the presidency is using coercive force to compel the GNPC to proceed and execute this loan agreement without parliamentary approval.
This is unconstitutional, this is unlawful and this is a blatant disregard to the directive and resolution of Parliament.” Mr. Jinapor said.
He explained that if the government through the GNPC, does not heed caution and goes ahead with its plan to mortgage the TEN oil field for the loan, it would amount to unconstitutionality without parliamentary agreement.
According to him, information available to them shows that the TEN oil field would be required to produce a minimum of 3.8 million barrels of crude oil each year for LITASCO as part of the loan agreement.
The Minority has, however, commended the board members of GNPC who have kicked against the loan agreement. According to the Ranking Member on the Parliament’s Mines and Energy Committee, the bold move by the GNPC board must be encouraged.