44 oil companies disappear with GH¢60m owed to BOST

About 44 oil companies have reportedly disappeared after defaulting on payments totaling approximately GH¢60 million owed to the Bulk Oil Storage and Transportation (BOST) Company Limited.

This alarming situation has raised significant concerns about the management and accountability within the country’s oil and gas industry.

Reports have exposed serious lapses in the operations and oversight of oil companies dealing with BOST which is now BEST [Bulk Energy Storage and Transportation Limited].

These companies, which were granted licenses to operate within the country’s petroleum sector, have reportedly failed to settle their debts despite several attempts by BOST to recover the funds.

National security is pursuing directors of 44 oil marketing companies that have disappeared with the money.

These companies reports stated collected levies and margins from the sale of petroleum products but failed to remit the funds to BOST.

The 2023 Auditor General's audited accounts has confirmed but all the companies cannot be traced.

The disappearance of these oil companies is a cause for significant concern.

According to the Chief Executive Officer of BEST, Dr Edwin Provencal, national security is tracking down the directors of these companies for possible prosecution.

He explained that when petroleum products are purchased, the BOST margin is supposed to be collected by Oil Marketing Companies (OMCs) and remitted to the National Petroleum Authority (NPA) for onward transmission to BOST.

The disappearance of these companies and the subsequent loss of GH¢60 million have far-reaching implications for Ghana’s energy sector.

The financial strain on BOST could affect its ability to maintain and expand its infrastructure, including fuel storage facilities and pipelines.

This could lead to disruptions in the supply of petroleum products, potentially causing fuel shortages and price hikes.

He said When it goes on for a while, the company is closed down, you can't find the directors. As we speak, those 44, we are in court with about 26 of them for them to pay the money.

And then for the rest, the companies are dead. Hopefully, with the power of government, we can raise the veil and go after the directors. We have escalated to [Economic and Organised Crime Office] EOCO, we've had some debt collection company with us, he said.

Dr. Provencal emphasised that BOST is diligently pursuing the recovery of these funds.

He noted that since public funds are involved, there is a compelling argument for lifting the veil of incorporation to hold the directors personally accountable.

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