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General News of Monday, 7 April 2003

Source: Ghanaian Chronicle

VRA Workers to Swear Oath of Secrecy

THE LEGAL department of the Volta River Authority (VRA) has been despatched to various sections across the country to explain the rationale behind the introduction of an Oath of Secrecy.
Sources at the legal department who intimated to this reporter said that those sent to explain the reasons for the oath are in disagreement with the idea but cannot protest.
On February 6, 2003, memo copies were carried to all departmental heads coming from the acting deputy chief, Resources and Services, distributed to the acting deputy chief executive, Finance and Investment.
Headlined Declaration of Secrecy, it said "further to our memo dated December 20, 2003, (believed should have been 2002), on the above-mentioned subject, we write to inform you that staff of the legal service department will be visiting all departments relating to the declaration of secrecy.
"The above exercise will be done before each employee will be asked to sign the bond of secrecy."
The VRA staff groups, the Union and Senior Staff association on January 30, 2003, wrote to members on the signing of Oath of Secrecy. It further stated that the leaders of the staff groups are in contact with management over the above issue.
Members were, therefore, being advised to hold on till the issue is clarified.
It was jointly signed by Marian Antwi, national chairman, Senior Staff Association and George Okine, Divisional House Union.
As the once respected hydro electricity generating authority dims, it has been plunged into trouble with the Customs, Excise and Preventive Service (CEPS) over payment of tax and duty element on 28 million litres of fuel the VRA imported to run the Strategic Reserve Plant (SRP) which was to rescue the country from its energy crisis but has become a liability more than an asset.
The VRA is to pay ?1.4 billion before CEPS will release the fuel which is now seized and remains in Custom-bonded storage tanks at the Tema Oil Refinery (TOR).
Painstaking investigation carried by the Chronicle has revealed that the VRA, after sending away the first fuel that was rejected by the consultant to the SRP, imported the new fuel and as the norms, pumped it to the customs bonded storage tank at TOR.
The VRA went to take the product but CEPS slapped tax and duty element of ?1.4 billion to be paid before releasing it.
The power generators, flexing muscles, stated that they are exempted from paying tax and duties on things that they import but CEPS made them to realise that the exemptions being enjoyed are only for equipment that are ordered to perform their core business of power generation, and that fuel is not embodied in the exemption.
For some weeks now, the VRA has literally been on its knees trying to persuade the tax collectors who are also arriving at their target and some incentives that go with it.
Latest information, however, has it that government has intervened and that VRA is asking for three months to settle the duty and tax elements. The 28 million litres of fuel is still in TOR tanks also attracting rental fee.
As the Chronicle digs, revelations are that the SRP was obtained from G.E. Energy Rentals of the United States of America on rental basis. This was allegedly done in December 2001 when the CEO, Dr. Charles Wereko Brobby, visited the US on holidays hence upon his return, Tarzan declared that "power outages are things of the past." The negotiations were reportedly done by the CEO himself.
Further enquiries revealed that Ghana has allegedly deposited irrevocable Letters of Credit (L/C) of $4 million as security for rental charges beginning July last year and two were to be commissioned in September of the same year.
In actual fact, there are five units to generate 20 megawatts of power each totalling 100 megawatts.
Reliable information from the VRA has it that the five units cost the tax payer $1,375 million per month at $275,000 each per month. However, after the disappointing non-performance of the SRP, idling for 10 months even though we continue to pay the rental, negotiations are being planned to reduce the fee to $900,000 at $180,000 each.
Ironically, power generated from the SRP will cost Ghanaians 10 cents per kilowatt-hour when power imported from the Ivory Coast costs 5 cents per kilowatts.
Official sources at the VRA who believed that something has to be done immediately about declining VRA hinted that these monies being thrown into the gutter in the name of SRP can be channelled to complete the Obuasi-Prestea-Ivory Coast high tension line to rather import more from our neighbour.
Interestingly, the 28 million litres of fuel imported is to run only two of the plants for one month and the cost of the product is about $72 million for lighter diesel.
The Chronicle wants to find out if it is true that receipts from power sales to VALCO is what is being given to the banks as security for our indebtedness to the Ivory Coast for power purchased? If so, what happens now that VALCO is nearing shut down because we can not supply required power?
In all the CEO, Dr. Charles Wereko-Brobby refused to talk to the press on these issues neither did the public relations outfit live up to its promises to answer to questions when reached, even upon their own request to live up to questionnaires which were done. There is uneasy calm at the VRA and the earlier government forgets about pride and sets in, the better. The workers are calling for forensic audit.
What happened to the intended commissioning of the Sawla substation on the 27th of last month to commence sale of electricity to Burkina Faso as confirmed by out-going Energy minister, Hon. Albert kan Dapaah. What is the rationale behind this sale and more as the theatre remains busy? Look out for subsequent editions.