The Director-General of the Social Interests and Governance Authority (SIGA), John Boadu, has argued that no oil refinery worldwide could break even or profit unless it produces at least 100,000 barrels of oil daily.
Mr. Boadu’s comments came during a press briefing organized by the Ministry of Information in Accra, responding to questions about the recent inactivity of the Tema Oil Refinery (TOR). The refinery currently has a daily production capacity of 45,000 barrels.
He explained that TOR was initially established not for profit but to meet the nation’s petroleum needs. During its early years, the government used TOR’s products to subsidize local petroleum products whenever there were oil price hikes on the international market.
However, over the years, the refinery has accumulated significant debts, and its machinery has either halted or become obsolete. Boadu noted that political actors over the years have not aided TOR in regaining its former glory. He believes that attracting a strategic investor to inject funds into the refinery could revitalize its operations.
Addressing the issue of State-Owned Enterprises (SOEs), Mr. Boadu stated that there had been a lack of transparency and accountability among SOEs due to the absence of an overseeing institution. “In 2016, only two out of 175 SOEs presented their audited accounts report. Without SIGA to enforce compliance, I believe most SOEs wouldn’t show their audited reports,” he said.
Currently, 55 SOEs have presented their audited accounts, and Boadu expects that by year-end, 130 will have done so.
Regarding the SOEs’ contributions to the economy, Mr. Boadu revealed that in 2020, the SOEs contributed about GH₵20 billion to the country’s Gross Domestic Product (GDP), which increased to GH₵419 billion in 2022. He attributed this increase to SIGA’s push for compliance, transparency, and accountability among SOEs in presenting audited accounts.
On the topic of irregularities by some SOEs, the Director-General of SIGA reported that the Auditor-General’s Report showed GH₵15 billion losses by SOEs in 2022 alone. However, this figure has declined to GH₵8.8 billion, representing a 41.46% reduction in irregularities.
