The government’s intentions to use the earnings from the TEN oil field as security for a $431 million loan facility from LITASCO have been quickly brought into question by the minority in parliament.
The Minority claims that this arrangement is unlawful and expresses worry that the loan deal would oblige the TEN oil field to provide LITASCO with a minimum of 3.8 million barrels of crude oil annually.
The Ghana National Petroleum Corporation (GNPCrequest )’s to secure the loan until the terms and conditions of the agreement were provided by Parliament was denied, but the presidency has instructed GNPC to seek board approval for the loan anyway, according to John Jinapor, the ranking member on the Mines and Energy Committee, who was speaking to journalists on Wednesday, September 20.
“To our utmost shock, the minority side has become aware that the presidency is using coercive force to compel the GNPC to proceed and execute this loan agreement without parliamentary approval,” Jinapor said, adding “This is unconstitutional, this is unlawful and this is a blatant disregard to the directive and resolution of Parliament.”
The Minority also commended the board members of GNPC who have kicked against the loan agreement. According to Jinapor, the bold move by the GNPC board must be encouraged.
He warned that the move would amount to an unconstitutionality if GNPC goes ahead with the loan agreement without parliamentary agreement.
