….Officials pushing to ratify gas deal without investigation
The Herald, has received reports of confusion within the Mahama government, concerning attempts to regularise the contentious Genser Energy and Ghana National Petroleum Corporation (GNPC) gas agreement without conducting any thorough investigations.
Sources within Ghana Gas, have disclosed to The Herald that the deal, which was negotiated under the Akufo-Addo administration and has since sparked controversy, is being endorsed by specific figures within the Mahama government, even before a governing board has been constituted.
The agreement, has been a matter of significant dispute, with claims that the nation is being shortchanged by a private company in collusion with self-serving politicians.
However, it appears that no corrective action is being considered, as some individuals are pushing to have the deal legitimised.
The Herald, reported details regarding the relationship between Genser and GNPC a few months ago, including confirmation that GNPC, will be liable to pay over US$1.8 billion over 16 years for a pipeline installed by Genser, despite prior denials that the Kumasi pipeline, would incur such a cost for GNPC.
There was also uncertainty over who authorised the construction of the pipeline. Genser pointed the finger at the then Minister of Energy, Matthew Opoku Prempeh, accusing him of granting approval.
This testimony contradicted his testimony before the Mines and Energy Committee, where he denied involvement in the Genser deal and placed responsibility on his predecessor, John Peter Amewu.
Over the period, Genser Energy, engaged in a coordinated media campaign to portray itself as the victim of a misguided corporate decision, rather than as a party to a scheme that deprives the country of revenue from its natural resources.
After completing the pipeline construction to Kumasi, Genser awaited GNPC’s payments for the infrastructure.
However, GNPC, neither possessed the requisite gas volumes nor the funds to meet Genser’s demands. In response, Genser, has proposed splitting the contract into infrastructure and commodity components at its discretion.
The agreement between Genser Energy and GNPC, became controversial two years ago. Key civil society organisations (CSOs), particularly the African Centre for Energy Policy (ACEP) and IMANI, raised concerns that the deal would result in billions of dollars in gas discounts for Genser and the gas sector. ACEP and IMANI, branded the agreement a “sweetheart deal” that could lead to an estimated US$1.5 billion in gas discounts for Genser.
Despite these concerns, GNPC and the Akufo-Addo government, denied any wrongdoing, insisting that the contract was above board.
The gas price was reduced from US$6.08/MMBtu under Ghana Gas to US$2.79/MMBtu, when the deal was politically transferred to GNPC. Genser was later granted a further reduction to US$1.75/MMBtu after completing its Kumasi pipeline, further increasing GNPC’s liabilities.
The Parliamentary Committee on Mines and Energy, then led by Samuel Atta Akyea, investigated the matter without the Speaker’s directive, while Parliament was in recess.
This move raised concerns about the committee’s impartiality, particularly given that its chairman, Atta Akyea, and KT Hammond, had prematurely dismissed concerns raised by The Herald and CSOs, suggesting that nothing untoward had occurred.
The committee’s report, has yet to be released after nearly a year, while Genser continued to pay a below-market price for gas.
Speculation is rife that the committee chairman influenced Genser’s input into the report and sought to impose it on the committee.
The Herald investigated the stance of the NDC minority, which was divided on the issue, and will provide further updates.
Later developments further complicated the transaction for Ghana. With GNPC struggling financially, Genser pushed for a more substantial contract with parliamentary approval to secure future payments.
Notably, Genser confirmed that GNPC, was to be liable to pay over US$1.8 billion for the pipeline over 16 years, contradicting earlier claims that the cost would be around US$1.5 billion.
In a letter to GNPC regarding a new proposal, Genser, curiously copied Parliament and suggested that Parliament ratify the deal, effectively placing the US$1.8 billion burden on Ghanaian taxpayers.
The Herald’s investigative efforts exposed the intricate web of deception surrounding Samuel Atta Akyea, Chairman of the Mines and Energy Committee report.
Evidence surfaced suggesting that the report was manipulated to align GNPC’s position with that of Genser.
Disturbingly, early drafts of the report contained inconsistencies between GNPC’s and Genser’s accounts. However, certain committee members aligned with the then-chairman, reportedly intervened to amend GNPC’s position to match Genser’s narrative.
These revelations lend credence to accusations by ACEP and IMANI that the chairman deliberately ignored factual evidence to produce a biased report.
In a significant development, the then-Minister of Energy, Dr Matthew Opoku Prempeh, distanced himself from aspects of the report, further undermining its credibility.
Signed by Atta Akyea, the Member of Parliament (MP) for Abuakwa South in the Eastern Region, the report’s findings raised concerns over collusion between committee members and private interests, potentially costing Ghana a staggering US$1.5 billion.
The Herald, has consistently documented the conflicting positions of committee members, including Kwabena Donkor and KT Hammond, who displayed explicit biases even before the committee began its investigation in October 2022.
As the story continued to unfold, The Herald, despite facing threats of a subpoena from the committee, remained committed to uncovering the truth and exposing those responsible for manipulating the report.
More to come!