Petroleum Revenue Management Act 2011, amendment Act 893 must be consolidated — Dr Gatsi

 Dr GatsiThe Head of the Department of Finance, School of Business at the University of Cape Coast, Dr John Gatsi has suggested that the Petroleum Revenue Management Act 2011 (Act 815) and its amendment Act 893 should be consolidated into one Act to avoid the situation where people make reference to important sections without being aware that such sections have been amended.

 

He also explained that using the petroleum revenue management Act since 2011 without an LI (legislative instrument) was not the best.

 

Dr Gatsi made the suggestion in an interview with the Ghanaian Times after the induction ceremony and Continuing Professional Development (CPD) programme of the Association of Certified Chartered Economists (ACCE) in Accra on Saturday.

 

As part of the programme, Joseph Asantey, Risk Officer of Premium Bank and Daniel Addo, Finance Director of the National Petroleum Authority were admitted as Fellows of ACCE and 37 others were inducted into the association.

 

Dr Gatsi who spoke on the Reserve Based Financing, for instance, said while the Petroleum Revenue Management Act stipulated that the government could not use petroleum reserve as collateral to borrow, the Petroleum Act on one hand prohibits the use of petroleum license or agreement, permit or authorisation to mortgage, but on the other hand allowed that if the Minister of Petroleum permitted that could take place.

 

He also said that while the Petroleum Revenue Management Act was explicit that the government could not use petroleum reserve for collateralisation, the Petroleum Act 2016, Act 919 gave the Minister of Petroleum the leeway to companies when the Minister in charge of Petroleum gave permission.

 

He further explained that reserve report in which legality of leasehold or ownership right, reserve type, production performance, price development and extent of hedging are indicated maybe required by financiers on annual or semiannual basis to ensure proper risk management.

 

“There is the need for clarity between the position of the Petroleum Revenue Management Act and the Petroleum Act, and that clarity is very important because the reserve protects future generations and you cannot mortgage it against borrowing,” Dr Gatsi said.

 

On his part Mr. Innocent Senyo Acquah who is a lecturer and supply chain and procurement professional at the Department of Marketing and Supply Chain Management spoke on the emerging issues in public procurement  in which he dealt with bid-rigging in public procurement and the red flags that should trigger further curiosity

 

Mr. Acquah called for the establishment a competition and markets commission with the characteristics of CHRAJ to be able to investigate on their own or through whistleblower information just as is in the UK to engage in independent surveillance to ensure effective deterrent of bid -rigging and abuse by suppliers and contractors.

 

The Director of Operations of ACCE, Konadu Yiadom said the association was affiliated to renowed universities and global institutions such as the Thomas Jefferson School of Law and the Global Academy of Finance and Management.

 

He said the certificate of ACCE was recognised globally and its courses were ISO certified.

 

Mr. Yiadom said students had to go through some series of examinations before one could be certified as chartered economists, saying the Association organised two exams in a year

 

He said applicants could charter in areas such as energy, petroleum, economic policy, finance, health, financial economics, saying there were high job prospects in any of the areas of specialisation.

BY KINGSLEY ASARE

 

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