The Committee on Employment, Social Welfare and State Enterprises of Parliament is asking the government to desist from using the Ghana National Petroleum Corporation (GNPC) as its cash cow in funding activities unrelated to its mandate.
Speaking in Parliament
on Tuesday, the Ranking Member on the committee, Dr. Kwabena Donkor said
“without the injection of new funds, GNPC is on the brink of bankruptcy.”
“The financials don’t speak well of
GNPC. The future is bleak for GNPC and, therefore, we must insist that GNPC
stays on the straight and narrow path in its operations.”
The Ranking Member on the Mines and
Energy Committee of Parliament, John Jinapor, also said the GNPC is on the
verge of collapse due to the decrease in its profitability.
He noted that the gross profit margin
had reduced from “50 percent in 2018, to 26 percent in 2019 to 0.3 percent in
2020.”
The Committee on Employment, Social
Welfare and State Enterprises in its annual financial performance report on
GNPC revealed that the firm’s gross profit margin reduced from 50 percent in
2018 to less than one percent in 2020.
The report also noted that the firm
increasingly depends on gas sales to fund its operations due to the decline in
the sales from crude oil.
Source: CNR Citi Newsroom