PIAC proposes effective implementation of PRMA to address oil revenue management challenges

• PIAC has called for the effective implementation of laws under the PRMA

• It is only in 2019 that the provision of the law has been acted upon

• PIAC is an independent statutory body mandated to promote transparency and accountability in Ghana's oil revenue management

Ghana’s petroleum revenue watchdog, the Public Interest and Accountability Committee (PIAC) has recommended the effective implementation of laws under the Petroleum Revenue Management Act.

According to the Committee's latest issue paper for August 2020, it points that although the PRMA under Section 60 provides for the Minister for Finance to make regulations for the effective implementation of the law, it is only in 2019 that the provision has been acted upon.

PIAC citing an example pointed to a recurrence of wrongful lodgment of petroleum revenues/receipts into Ghana Revenue Authority accounts contrary to the dictates of the PRMA.

“For instance, an amount of US$13.52 million, which was wrongfully paid into GRA’s account in 2017 has only recently been transferred into the Petroleum Holding Fund as required by the PRMA, according to GRA. The practice re-occurred in 2019, though rectified in the same year," the paper revealed.

"This denies the PHF the needed resources for development financing. The recurring noncompliance in the reported expenditure of the MoF to the PRMA requirement to spend at least 70 percent of the Annual Budget Funding Amount on Public Investment Expenditure is another challenge."

“Closely linked with the above challenges is the inconsistent allocation of petroleum revenue and also the late enactment of subsidiary legislation to the PRMA. Timely enactment of the Regulations could have better operationalised the PRMA to prevent most (if not all) of the above compliance challenges,” it added.

PIAC urged government to expedite action on the recommendation to ensure the efficient management and use of the country’s oil revenue.

PIAC which is an independent statutory body mandated to promote transparency and accountability in the management of petroleum revenues in Ghana was established in 2011.

This year, PIAC is celebrating its 10th year anniversary with the theme ‘Strengthening Citizens’ Ownership and Understanding of PIAC and Its Oversight of Petroleum Revenue Management’.