You are here: HomeBusiness2018 06 28Article 664165

Business News of Thursday, 28 June 2018

Source: Starrfmonline.com

VRA debt: Ghana Gas needs a clean balance sheet – CEO

The Chief Executive of Ghana National Gas Company (GNGC) says the firm needs a clean balance sheet in order to effectively attain their core objectives.

According to Dr. K.B Asante, the challenges confronting the firm are largely due to the fact that those who lift gas from them do not pay regularly.

The comments come on the back of reports that the Volta River Authority owes Ghana Gas in excess of $800 million.

The Public Interest and Accountability Committee (PIAC) has claimed the rising indebtedness of Volta River Authority (VRA) to (GNGC) poses dire consequences for the nation.

PIAC’s assessment revealed that VRA’s debt to Ghana Gas stood at $750 million as of the end of 2017.

In its Annual Report on the Management of Petroleum Revenues for 2017, PIAC disclosed that from inception of gas production to the end of December 2017, the Ghana National Petroleum Corporation (GNPC) has supplied 78.1 billion Standard Cubic of Gas (78,130.07 million) (MMScf) of raw gas to GNGC.

Commenting on the development, the Ghana Gas boss said the company could do much better if the debt owed them are paid.

“The collection of money should be right on and I think that is what the Ministry is trying to do. Ghana Gas is on its feet but it could be firmer if all debt is paid. Those who take gas from us do not pay regularly. We are asking for a clean balance sheet. That is what we are asking for. VRA has given us a paltry amount of what we are owed; We’ve been told that we will be given the second chunk of the money. Government has promised us that. We are grateful to the Ministry of Finance for addressing the debt issue,” he told Francis Abban on the Morning Starr Thursday.