*PRESS CONFERENCE BY THE MOVEMENT FOR A BETTER GHANA CALLING ON PRESIDENT
MILLS AND HIS GOVERNMENT TO CONDUCT A THOROUGH INVESTIGATIONS INTO THE
CURRENT TOR DEBT SITUATION INSPITE OF THE INSTITUTION OF THE TOR DEBT
RECOVERY LEVY AND ITD ACRUALS. MONDAY 17TH JANUARY 2011.*



Ladies and gentlemen of the press on behalf of my colleagues here, I would
like to extend our heartfelt appreciation to you for honoring our invitation
to this press conference, you are all welcome.



This press conference is intended to bring to the fore interesting
developments on Ghana's TOR debt recovery levy, we are giving a background
to how the NPP administration managed to dupe Ghanaians with regards to the
TOR debt and make a passionate appeal to his Excellency President Mills to
as a matter of urgency to institute a forensic investigations into how the
previous NPP administration utilized proceeds of the TOR debt Recovery Levy.



According to a news item carried in the Friday 31st May 2002 edition of the
Daily Graphic, The Tema Oil Refinery (TOR) reaped a windfall of about ¢96.5
billion over a 12-month period as a result of the favorable price of crude
oil on the international market. It was estimated that but for the
cumulative windfall gained from March 2001 to March 2002, TOR would have
gone bankrupt because of its indebtedness, which then stood at ¢3.4
trillion.

The then Board chairman of TOR, Mr E. Adu-Gyamfi, indicated that the
windfall was gained largely because of the favorable price of crude oil on
the world marked and the introduction of the strict impart parity prices by
the NPP government in March 2001. He created an impression that from March
to December 2001, TOR had a windfall of ¢66,378,709,625.65, while between
January and 31 March 2002 an additional windfall of ¢30.177 billion was
realized.

Mr Adu-Gyamfi told Ghanaians that the Minister of Finance had directed that
the windfall for 2001 be applied to defray part of the interest charges on
the converted portion of the TOR debt. .

Indeed when the NPP took over government in January 2001, they reported that
the Tema Oil Refinery (TOR) had incurred a debt of ¢2.3 trillion arising
from unfounded subsidies up to the time of the introduction of the petroleum
formula which was put in place in February 2001. We were told that the debt
was in the form of overdraft at various local banks as well as loan
facilities taken from some overseas banks to establish letters of credit.

We were told that in September 2001, 970 billion of the debt of ¢2.3
trillion was converted into long term petroleum bonds while interest on the
converted portion came up to ¢87.2 billion as at 31 December 2001. We were
again told that the remaining debt which was not converted into bonds was
¢1.33 trillion, which has attracted an interest of ¢329.8 billion.

therefore the total interest on the entire debt of ?2.3 trillion stood at
?417 billion as at 1 January 2001. The NPP said the debt of ¢2.3 trillion
did not take into account an additional ¢1.1 trillion of non-matured letters
of credit in respect of which the products had been consumed by 31 December
2000. We were told that the letters of credit were established at a time TOR
was not in a position to establish and fund the credit on its own because
the long period of unfounded subsidies.

we were told that since crude oil is vital to the economy, the Ministry of
Finance had persuaded the Bank of Ghana to set up cash margin accounts at
the Ghana Commercial Bank in fulfillment of a condition demanded by GCB this
were made to believe that it was the understanding of TOR that upon
maturity, the cash margin accounts would be used to pay for the letters of
credit but unfortunately the Bank of Ghana had refused to do that and the
full liability of ?1.1 trillion as at 31 December 2000 had then been debited
to the accounts of TOR.

They explained that the effect of this is that the oil-related debt of TOR
stood at ¢3.4 trillion and attracting interest of ¢55 billion every month.
They argued that if the previous government had taken realistic measures,
the problem of TOR would not have compounded to this level where the
Government had to be paying ¢35 billion to the banks to service its debt
every month.

at the time the board Chairman of TOR Mr. Adu Gyamfi said and we quote ‘If
the total primary capital of all commercial banks in Ghana works out to only
¢2 trillion, then TOR’s indebtedness of over ¢3.4 trillion is crippling as
well as damaging for the refinery and its bankers, he said, and called for
drastic steps to address the oil-related debt without further delay.

Mr Adu-Gyamfi suggested to government to do something about the debt of TOR
by turning it into equity because the state is the sole shareholder. He said
refineries normally do not make losses because they lucrative businesses.
The board chairman said the government had two options: Either to absorb
more of the debt into protection bonds or take care of all the debt. He said
the government conservatively spends $600 million per annum to import crude
oil to run the refinery.



These and many more reasons culminated in the introduction of the TOR DEBT
RECOVERY LEVY when the Hon.Minister of Finance, Mr. Yaw Osafo-Maafo
presented the 2003 Budget Statement to Parliament and in

SECTION SEVEN: of the statement he outlined the NPP's government POLICY
INITIATIVES FOR 2003 that introduced the TOR Debt Recovery Levy on Petroleum
Products in paragraph 536 of the 2003 budget statement and I read " Mr.
Speaker, to ensure the achievement of full cost recovery as well as to help
pay of the accumulated debt of TOR over time, a Debt Recovery Levy on
petroleum products, at the rate not exceeding ¢640 per litre across board
will soon be laid before Parliament"

So the TOR Debt Recovery Levy was put in place, we have learnt over time it
accrued about 7 trillion Cedis but the money was not used for the intended
purpose.

What we have learnt in some circles is that about ¢15 billion was paid to
groups of journalists by the previous government.

According to an audit report, a former Minister of Information, Stephen
Asamoah Boateng, allegedly collected the money for distribution to the said
journalists.

The auditors say such groups were the beneficiaries of the ¢15 billion
cedis.

The ¢15 billion, according to the audit, was taken from the Tema Oil
Refinery (TOR) Debt Recovery Levy.

we are by this press conference ladies and gentlemen, calling on President
mills to institute an urgent forensic investigations into the circumstances
under which proceeds of the TOR Debt Recovery Levy were utilized and how
private and individual journalist sourced ¢15 billion cedis from the fund,

Who and who constitute BLOW, PRIM, FIRST RESPONSE, and the EDITOR’S FORUM. So
the people who would be found to have committed any crime to be punished to
serve as a deterrent to all government and public officials that Ghanaians
cannot be taken for granted.



Again, AFAG after their press conference today has slaated a nationwide
demonstration starting from the 26th of this month. We the Movement for a
Better Ghana (MBG) is also going to demonstrate in support of the fuel price
increase and also call on the government to take immediate measures in
prosecuting those who diverted the fund. Ladies and Gentlemen, arrangements
are ongoing and when we are done, we will inform you of the date of our
counter demonstration.



Thank you.



Ebenezar Opoku Alokeee- Organizer 0266607302



Francis Dodovi - Communications Director-0243751824



Ernest Brogya Genfi- Financial Secretary- 0249 582140



Kwaku Boahene -Member 0244 963425



Ofori Agyeman Boadi- Secretary- 0246085425



Aubrey Mends- Chairman- 0267976040