NPA’S Extra Petroleum Charge Is “Chobo”!

On Monday November 28, an Accra High Court declared as illegal the extra charges that the National Petroleum Agency (NPA) and the Tema Oil Refinery (TOR) had smuggled into the price build up of petroleum products in the country since 2009. Wrapped in the euphemism of “ex-refinery differential”, the NPA and TOR, without recourse to parliamentary approval, smuggled into the petroleum price build up, certain illegal taxes which has had the ultimate effect of increasing the price of petroleum products. These monies were lodged in some private accounts, and how and what they are being used for is closely guarded. Led by the NPP parliamentary candidate for Obuasi, Kwaku Kwarteng, and Mr.Abdul Ganiyu of Tamale, the Development Data (DD) policy research and advocacy organization, filed a writ at the High Court way back in September 2009, praying the court to abolish the illegal margin that had been smuggled into the price build-up of petroleum prices. After over two years of court wrangling, the high court has finally ruled that the price differential is illegal.

Per the court’s ruling, the NPA and TOR are to immediately remove the illegal margins disguised as ex-refinery differential from the prices of petrol, kerosene, diesel, LPG and MGL local. The NPA is also required to announce new fuel prices minus the illegal margins. The NPA has been further directed by the court to publish in the Daily Graphic and Ghanaian Times, the total amount accrued from the imposition of the illegal margins within 4 months from the date of the judgment and pay such into the consolidated fund.

Giving a background on how the thievery started, on Multi TV’s Minority Caucus, the gentleman who led the onslaught against the NPA, said in June 2009, contrary to the promises of candidate Mills, the body announced an increase in fuel prices. On the same day, the NPA sent letters signed by its CEO to the Oil Marketing Companies (OMCs) directing them to pay a part of the price of fuel which they had titled “ex-refinery differential, into a special account of the NPA. According to Kwaku Kwarteng, his outfit, DD, intercepted a copy of the letter which was labeled “confidential” based on which they made attempts to have discussions with the NPA on the matter, as the extra monies being charged, in their opinion, could be likened to what is known in our local parlance as “chobo” . Realizing that the NPA was not interested in backing down on this illegal act, the case was sent to court in September of 2009 and based on their argument that the extra levies being imposed on the people had not been approved by parliament, the only institution vested with the power to impose or repeal taxes, the court ruled in DD’s favour. Explaining further, Kwaku Kwarteng said that when proposed taxes are sent to parliament and they are approved, monies accrued from these taxes are lodged in the appropriate account, and there are institutions of state like the Controller and Accountant General’s Department, to ensure that the monies are used appropriately. However where the monies are collected in the way the NPA did, then Ghanaians will not know the account the monies are being channeled into, the signatory of that account and how the monies are being used; so there will be no auditing.

The Obuasi parliamentary aspirant expressed his satisfaction with the court’s ruling, urging government to expedite action to pay the over GH¢600million into the consolidated fund. Already, according to Kwaku, word is going round that part of the illegally collected money was used to sponsor President Mills’ campaign during the FONKAR and GAME stand-off, with the balance being built up to execute the old man’s 2012 presidential campaign. Others are also suggesting that part of this money is being used to shore up the president’s medical fund. With all these going on it will only be in the interest of the NPA to refund the money it stole from the people of Ghana.

Kwaku Kwarteng expressed his disappointment at government’s intention to appeal the judgment explaining that though it is the righty of the NPA to do so, it was obvious they were not going to win. “Hiding behind an appeal to perpetuate an illegality by stealing from the already impoverished Ghanaian is sheer wickedness”, he said. He called on the NPA to respect the ruling of the high court and act immediately by announcing a reduction in fuel prices.

He described as irrelevant the argument being put forward that the overpricing of petroleum products started before the NDC came to power, arguing that the NDC rode to power on the “ Better Ghana Agenda”, promising to right the wrongs of the previous administration, so if today they are using the “wrongs” of the previous administration as an excuse to steal from Ghanaians, then they are indicting themselves. Presenting a parliamentary perspective on the matter, NPP MP for Bimbilla, Hon. Dominic Nitiwul assured Ghanaians that parliament was going to take a critical look at the matter and act appropriately. He described NPA’s action of unilaterally imposing a tax on the people without recourse to parliament as criminal. He also described as unfortunate, the NDC government’s perpetuation of this illegality for close to 3 years.

The Bimbilla MP also revealed that though the country is now a major crude oil exporter, the Tema Oil Refinery is not being fed with any crude oil to refine. Instead the NPA has selected some companies to bring in the finished product. The NPA then adds its illegal ex-refinery differential to the approved price, then after selling decides how much of the ex-refinery profit to give to these companies whilst keeping the rest for God knows what. After all the money is not subjected to any auditing by any recognized state institution and this opens the door for plain thievery. He likened the government’s position not to withdraw the illegal tax until after the appeal to a person who had been convicted for stealing a cow, only for the person to ask for a stay of execution of his sentence pending the outcome of his appeal because, he stole a sheep! “In this case, the NPA will continue to charge this illegal price until the outcome of their appeal” he said.

He challenged the NPA and NDC government to pay back the money they have illegally collected within the time stipulated by the court. “I can bet you that when you check the accounts the money was supposed to be lodged in, you won’t see anything. Somebody has blown the cash and this has become a problem for government because they do not know where they are going to take GH¢690million”. Hon. Nitiwul accused the NDC government of being in the habit of illegally taxing Ghanaians. He revealed that in the 2011 budget, workers were supposed to get some tax reliefs. Instead the government, on the quiet continued to overtax the poor Ghanaian worker for almost the whole year. “It is only now that we are debating the current budget, that they are making effort to implement the right thing.

The host of the programme, Yaw Boabeng Asamoah chided President Mills and the NPA for refusing to reduce the price of fuel following the court ruling, especially since the NDC won power with the promise to reduce prices of fuel drastically, by removing all taxes from its price build up.

BY YAW P. K. MANU Yawp.koomanu@gmail.com