PIAC proposes petroleum profit investment strategies that sustain PIAC presentation on management and investment strategies.
PIAC presentation on management strategies and investment
The Public Interest and Accountability Committee (PIAC), the body responsible for ensuring transparency and accountability of Ghana's petroleum profit, has raised a red flag about the use of revenue by successive governments.
The Committee said that, for example, successive governments use the revenues of oil to address many of the national problems at the same time, thus undermining the potential impact of oil profits on Ghana's economic development.
Ghana received $ 7.36 in petroleum receipts at the end of December 2021. This amount includes petroleum receipts from 2011 to 2021.
Mr. Isaac Dwamena, a Member of the PIAC, did this during his presentation on management strategies and investments to achieve the Annual Fuel Profit, at a workshop in Accra.
However, he said, because governments spend money on so many projects at one time some of those projects have been left unfinished, which is why the people of Ghana were not getting much higher profits from oil prices.
"I can tell you that sometimes petrol money is used to cover 4,000 infrastructure projects a year so when things like this happen it is very difficult to get rid of it and we don't get the expected profit," said Mr. Dwamena.
The lack of a national development plan enables each government to select projects in line with the organization's agenda and that has not helped ensure the country's sustainable development, he said.
"There is also a weak way to monitor projects and lead to suspended projects and even change of project location due to poor coordination of the operating agency."
Mr. Dwamena lamented the non-negotiation and non-participation of participants and beneficiaries in the nomination and awarding of prizes, creating ownership challenges once completed.
"While PIAC regularly reviewed petroleum-funded programs, we came to some meetings and asked about contractors who were doing certain work, and some assemblies were completely unaware of the contract because the contract was awarded to Accra for their involvement," he said.
Mr. Dwamena said PIAC believed that the government should ensure a strong monitoring and evaluation system that integrates the various functions between national and sub-national agencies to improve the monitoring and evaluation of petroleum-funded projects.
"PIAC believes that a few heritage projects need to be identified and funded with petroleum funding to be completed."
"Ghana needs a long-term national development plan that will regulate fuel spending."
Joseph Sarpong, Head of the Department of Energy and Petroleum, Finance Department, in response to complaints raised by PIAC, said there were many development challenges in the country, which is why the government was spending petrol money to help solve them.
Also, projects are selected based on government policy and technical reasons, he noted.
He said the Petroleum Revenue Management Act gives the government the power to select four key areas and spend oil wisely and review its performance every three years.
He mentioned roads and trains, health facilities, clean water and sanitation, public safety and security, education (Free SHS), agricultural development, science and technology, and other energy sources as some of the government's priorities are used to buy fuel.
However, Mr. Sarpong promised to inform his superiors about the concerns expressed by PIAC.
Mr. Tijani Ahmed Hamza, Country Director of OXFAM, expressed the belief that one of the indicators of a “Complete Economy” is where the wealth and revenue of the State are shared equally.
Also, revenue from revenue should be used transparently and effectively for the benefit of the people, he said.
“We think this is important because oil money is in a better position to help people, but only if we look at it and apply it to an investment program that includes different governments and that does not have the political power that often benefits us. . "
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