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18th February, 2010

Public Accounts Committee Queries Energy Commission

By Salifu Abdul-Rahaman

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The Public Accounts Committee (PAC) yesterday queried the Energy Commission for paying ¢4.6 billion (460,000 new Ghana cedis) as rent advance for office accommodation in 2003.

The committee also questioned the rationale behind the commission’s four years rent advance payment instead of two years as required by law.

This was at the committee’s public sitting in Accra at which members of the commission appeared to respond to issues raised in the Auditor General’s Report on Public Accounts of Ghana (Public Boards, Corporation and other Statutory Institutions) for 2005.

Asked how much the Commission pays as rent presently, Mr. Alfred Ahinkorah, the Executive Director, said “180,000 dollars yearly.”

Alhaji Ibrahim Dey (NDC-Salaga) and member of the committee unhappy about the situation suggested that whoever took the decision on the rent accommodation should be brought to book.

Other members of the committee were not happy about the rent amount which they said could have been used to buy a permanent office accommodation instead.

Mr. Ahinkorah explained that the commission was initially housed at Diamond House in Accra central adding that the decision to rent the office accommodation was taken in 2003 when members of the National Energy Board were transferred en masse to the commission.

He said the commission had taken steps “to bid for some government properties for us as office accommodation.”

He said the commission had also tried to acquire a piece of land for the building of an office accommodation but the acquisition had not been easy.

Mr. Ahinkorah said human resources had been a major challenge to the commission explaining that personnel of the commission were being poached by other organisations who offered them enhanced condition of service.

The Ghana National Petroleum Corporation (GNPC) was also quizzed on its non-core business.

The Director of Administration, Andrew Badoo, who led a team from the corporation in the absence of the Managing Director, said the Prestea Sankofa Mines and Mole Hotel were earmarked for sale but no credible buyer had shown up to buy them.

On the viability of the investment, Peter Sasu, one of the Chief Accountants, told the committee that GH¢40,000 dividend declared by Mole Hotel in 2008 had not been paid to shareholders because of the absence of Board of Directors to effect payment.

It came to light that the GNPC’s Satellite Communications project in 2004 made an irrecoverable debt of seven billion old Ghana cedis while one billion old Ghana cedis was lost to companies who acquired data from the corporation but had not paid for it.
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