The Public Interest and Accountability Committee (PIAC) has accused the government misappropriating some US$700million from the oil stabilisation fund.
The oversight group noted the reckless action of government has breached Section 9(2) of the Petroleum Revenue Management Act (PRMA) in relation to Ghana Stabilisation Fund with impunity.
Section 9(2) of the PRMA (Act 815) states that, “the object of the Ghana Stabilisation Fund is (GSF) to cushion the impact on or sustain public expenditure capacity during periods of unanticipated petroleum revenue shortfalls.”
But the 2019 annual report as submitted to Parliament, on the management and use of petroleum revenues for the period 2018, PIAC said “it does not appear that the GSF is serving this primary objective”.
This is because, according to PIAC “out of the US$714.81 million that has been withdrawn from the GSF since inception, only US$53.69 million (7.51 percent) has been applied for the purposes of smoothening government expenditure through the budget.
The bulk, being an amount of US$619.73 million (86.72 percent), has been applied to debt repayment. The rest, US$41.19 million (5.76 percent), has gone into the Contingency Fund”.
PIAC is of the view that, the Stabilization Fund is largely not serving the purpose that it was envisioned under the Petroleum Revenue Management Act (PRMA).
About the report
The 2018 PIAC Report is in fulfillment of PIAC’s statutory obligation under the Petroleum Revenue Management Act, 2011 (Act 815). The Act, as amended by the Petroleum Revenue Management (Amendment) Act, 2015 (Act 893), enjoins PIAC to publish a semi-annual and annual report. The Report is a reconciliation of data supplied by stakeholder institutions and an independent assessment of the collection, management and use of the country’s petroleum revenues for the period January – December 2018.