‘Without injection of new funds, GNPC on the brink of bankruptcy' – Minority
Parliament’s Committee on Employment, Social Welfare and State Enterprises has raised concerns over the financial standing of the Ghana National Petroleum Corporation (GNPC).
Read full articleAccording to the Ranking Member on the Committee, Dr. Kwabena Donkor indicated that the state corporation’s finances do not speak well and therefore cautions of bankruptcy in the near future.
Speaking on the floor of Parliament on November 2, 2022, Dr. Donkor said government must desist from using GNPC as its revenue stream, especially for funding activities that are unrelated to the corporation’s mandate.
“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 assertion is however corroborated by the Ranking Member on the Mines and Energy Committee of Parliament, John Jinapor who believes GNPC is on the verge of collapse.
He explained this that is due to a reduction in the corporation’s profitability.
“The gross profit margin had reduced from “50 percent in 2018, to 26 percent in 2019 to 0.3 percent in 2020,” the lawmaker said in parliament.
Meanwhile, the annual financial performance report on GNPC issued by the Committee on Employment, Social Welfare and State Enterprises revealed that the gross profit margin of the corporation reduced from 50 percent in 2018 to less than one percent in 2020.
The report further said GNPC has occasionally depended on gas sales in order to fund its operation in the wake of a decline in crude oil sales.
MA/FNOQ
