Management Of Ghana's Oil Revenue !!!

Congratulations to President Mills' administration especially the Honourable Minister of Energy, Dr. Oteng-Adjei for the TRANSPARENCY so far exhibited in informing the people of Ghana about the Oil Revenue.

Now, every Tom, Dick and Harry ( in Ghanaian Terms "Every Kofi and Ama, Akosua, Yaa, Amadu, Kwame and Esi, Musa, Kwabena and Kweku, Agovi, Amaarquaye and Komla ) knows that the revenue at the moment is $1.97 billion.

The next step is to inform the Ghanaian People, how the money is being used.

The main purpose of this article is to bring to the attention of the Mills' Administration that the Province of Alberta in Canada has been in the oil business since 1947. The Province has managed its Oil Royalties in a JUDICIOUS and PRUDENT way. Surely, Ghana can learn at least one thing from Alberta : Setting up A HERITAGE SAVINGS TRUST FUND with a significant percentage of the Royalties from the oil business. If President Mills establishes a similar Savings Fund, it will be a major LEGACY for the Government.

The Alberta Heritage Trust Fund now stands around $16,000,000,000 ( sixteen billion dollars )

BRIEF HISTORY OF THE FUND.

In 1976, the Premier of Alberta, the Honourable Peter Lougheed and his Progressive Conservative Government established the Alberta Heritage Savings Trust Fund for the Province of Alberta.

".. by an Act of Legislature with initial resources.. from the General Revenue Fund ." THE ALBERTA HERITAGE SAVINGS TRUST FUND was established.

Its purpose is to save and invest revenues from Alberta's OIL and GAS.

Initially, 30% of the Alberta's non-renewable resources royalties was annually transferred to the fund. Later the transfer was reduce to 15%. Occasional adjustments were made as circumstances dictated.

At the moment, the fund stands at approximately $16,000.000.000.

Numerous major projects which have been funded by the INTEREST on the fund include:

1. The Alberta Oil Sand Technology and Research Authority ( $419million )

2. The Walter C. Mackenzie Health Sciences Centre ( $391 million )

3. Kananaski Country Recreational Development ( $225 million )

4. Major Irrigation Projects ( $503 million )

5. Alberta Agricultural Development Corporation ( $101.3 million

6. Alberta Mortgage and Housing Corporation ( $166.1 million )

7. Loans to other Canadian Provinces ( $1.2 billion )

8. Numerous scholarships for undergraduate as well as postgraduate studies.

(NOTE THAT ONLY THE INTEREST ON THE FUND HAS BEEN USED FOR THE PROJECTS MENTIONED ABOVE !!! )

About five years ago, the Premier of Alberta, Ralph Klein and his conservative government decided to give a cheque of $400 to each of the three million residents of Alberta. Perhaps sometime in the future ( 2030 ), the Government in Ghana will be in a position to imitate this gesture !!!

At the moment, almost everyone in Alberta knows that the value of this fund is sixteen billion dollars. There is absolutely no secrecy whatsoever about how the interest on the fund is used to build infra-structure, support medical and educational research, and support all kinds of scholarships. Transparency is evident in the management of the fund. All Albertans therefore benefit from the oil industry.

This article is also meant to draw the attention of President Mills' government to how experienced and honest governments in DEVELOPED oil - rich countries manage their royalties. The Government of present day Ghana should take all steps necessary to prevent greedy individuals, who parade as entrepreneurs, from high jacking the oil industry to direct money into their personal bank accounts.

Alberta, the oil capital of Canada has been in the oil business for more than sixty years.. However, the question of royalties paid is still is a sour problem.

In 2007, the newly elected Premier of Alberta ( Ed, Stelmach ) appointed a Panel of Experts to examine the problem of royalties paid by oil companies to the Government of Alberta. After carefully analyzing all the data available in many oil producing countries including Alaska, Norway, Nigeria, Libya etc, the panel RECOMMENDED that Alberta should hike the rate of royalties paid by the oil companies by 20%. The panel observed that even with this increase, the royalties paid will still be below the level charged by other oil-producing countries. As expected, the reaction of the oil companies was negative. They threatened to withdraw their investment from Alberta. The report published by the panel was entitled: FAIR SHARE.

Unpatriotic and selfish Ghanaians, who appear to have established cozy dubious relationships with oil company officials should NOT be appointed to negotiate royalties on behalf of Ghana. CONFLICT OF INTEREST is likely to occur in the process. It is important to get people, who believe in social justice to negotiate with the powerful multinational oil companies.

It is noteworthy that CHINA is now involved in the oil business in ALBERTA.

A well-known Houston-based Oil Company, ConocoPhillips owns 9% in Alberta's famous Syncrude Tar-Sand Oil Business.

A Chinese Refining Giant ( SINOPEC ) has offered to pay $4.6 billion to acquire the nine-percent stake of ConocoPhillips in Syncrude Canada Ltd.

It would be advantageous for all Ghanaian Embassies in oil-producing countries to appoint competent and honest officers to study the complex and often competitive oil business to be able to advise the minister of energy at home. Diplomats, who show any tendency to use their position to enrich themselves by using inside knowledge should be prosecuted. Ghana NOW needs a few RELIABLE diplomats, who are prepared to work for the COMMON GOOD.

It would be a very good idea to request the Ghana High Commissioner in Canada to obtain reliable information about the ALBERTA HERITAGE SAVINGS TRUST FUND from the government of Alberta.

Transparency, Real Zero Tolerance for Corruption, True Accountability and True Patriotism must be exhibited by our politicians, senior civil servants and at least 50.23% of all citizens of Ghana if we want our oil resource to be a BLESSING instead of a CURSE to our dear motherland-GHANA.

If President Mills is able to set up "The Heritage Savings Trust Fund" to help all Ghanaians (especially the youth ), then he will be a good candidate to be nominated for the prestigious MO IBRAHIM AWARD for African Politicians.

God Bless Ghana !!!

Lsam@compusmart.ab.ca