The Bulk Oil Storage and Transportation (BOST) managed to beat down $37million claims by Bulk Distribution Companies (BDCs) to $11million saving the country more than $26million.
The savings come on the heel of a forensic audit of the company’s books which revealed that, the BDCs were owed about $11million out of their claims of $37million as of 2017.
Taking his turn at the Sunday edition of the Minister’s briefing Organised by the Ministry of Information, the Chief Executive Officer of BOST, Mr Edwin Alfred Provencal said following the change in administration in 2017, the BDCs numbering about 15 submitted claims of $37million owed them, however, a forensic audit initiated by the company to ascertain the viability of the claims revealed that, the BDCs were owed a little over $11million.
He said apart from saving the country more than $26million, the new management had managed to turn around the fortunes of the company making it a viable entity compared to the dying one it took over in 2017.
Mr Provencal said the books of the company as of 2017, there was a total of $624million debt created on its books through its operations in addition to a legacy debt of GH¢100 billion 284million and a CAPEX liability of $109million.
However, the company through its Internally Generated Funds (IGF) and support of government had managed to bring its trade liabilities $624million down, leaving only $39million on its books now.
Furthermore, he explained that the company’s domestic debt of GH¢ 248million which was owed some Ghanaian banks had been paid leaving only GHc61million and everything was being done to clear all.
Apart from the liabilities, the CEO noted that most of the company’s operational assets were down making it difficult for profitability.
He said the pipelines which were used in transporting fuel from Tema to Akosombo and from Buipe to Bolgatanga In addition to the barges on the Volta Lake for transporting fuel from Akosombo to Buipe were all out of function making tanker haulage the only means of transporting fuel across the country.
This means of transportation was not only expensive but also a toll of the operations of the company.
“In 2011, the company bought some pipelines to be laid across the country and it will shock you that as of 2017, these pipelines bought with the taxpayers money had been left in the US. As we speak now, we have managed to complete all the necessary processes and they will arrive in Ghana by November,” he said.
Mr Provencal said the company over the last four years had gone through a lot of transformation making it possible to now supply fuel to its neighbouring land lock country’s as well as enhancing its operational efficiency.
BY CLIFF EKUFUL
