According to BOST, the reports are not a perfect representation of its financial status for the year 2020.
In a press release issued on Sunday, April 10, 2022, BOST stated that contrary to the reports, it made a pre-tax profit of GH₵9, 844,673.
“The Managing Director in his submission at SIGA was emphatic that the company achieved a profit before tax of GH¢9,844,673 versus an estimated GH¢30 million in year 2020 as against a loss of GH¢158,478,676 in 2019. The positive net profit before tax attained in 2020 implies a massive turnaround of the operational fortunes of the company,” portions of the release stated.
BOST noted further in the statement that the claims captured by some media outlets failed to situate Edwin Provencal’s statement in the proper context.
The management elucidated that the losses that hit the company were triggered by external factors which it had no control over.
It mentioned unpaid tax obligations as well a reduction in the value of its shares in GOIL as two major factors that contributed to the losses suffered by the company.
“In the year 2019 to 2020, our investment in GOIL saw a reduction of GH¢15, 674,525 in its market value. Respectfully, this event is external to BOST operations and therefore to gauge the performance of BOST management and staff by this loss in investment will not be fair. This is the reason why we should rely on the profit before tax rather than all these uncontrollable factors which have been factored in to arrive at the net profit or loss for the year. The recorded net losses for the years 2019 and 2020 per the income statement were, therefore, GH¢101, 411,781 and GH¢291, 017,758”, the statement added.
“This became necessary as most of the assets still in operation had been written down to near-zero levels while still useful in the operations of the company…when assets are revalued, the increase in their values is taxed resulting in larger tax obligations. The revaluation which was a deliberate decision to enhance the reporting of the company led to a deferred tax obligation of GH¢292,935,973 compared to the net loss of GH¢291,017,758, a difference of GH¢1,918,215”, it continued.
It therefore established and maintained that with a before tax profit of GH¢9, 844,673, the underlying business of BOST is profitable.
According to the management of BOST, it has turned around the fortunes of the firm and remains confident that its profit margin will witness an upward trajectory henceforth.
Media reports, culled from a SIGA report by SIGA on the performance of state-owned firms alleged that BOST made a loss of GH¢400 million but the BOST has denied those reports.
Managing Director of BOST, Edwin Provencal