Parliament’s Public Accounts Committee (PAC) has directed the state’s upstream regulator, the Petroleum Commission, to actively pursue the recovery of a debt totalling GH¢50 million in permit fees from Springfield Exploration and Production Limited, which has been outstanding since 2017.
The Commission has also been asked to present evidence of recovery for audit verification.
During a PAC session on Monday, Egbert Faibille Jnr, CEO of the Petroleum Commission, acknowledged the debt and assured committee members that efforts were being made to collect the outstanding amount.
“As we speak we have engaged with Springfield for them to come up with a payment plan to enable them meet their obligation. It is all as a result of the difficulties that the industry experienced [covid-19], they will submit a payment plan shortly to us, I believe by the end of this month.” Mr. Faibille said.
According to the 2023 Auditor-General’s Report on Public Boards, Corporations, and other Statutory Institutions, it was revealed that Springfield Exploration and Production Limited, a wholly Ghanaian-owned entity in the oil and gas industry, owed the Commission a total of GH¢50,037,809.36 in permit fees from January 2017 to December 2022.
The report recommended that the Commission’s management take the necessary steps to recover the outstanding revenue from Springfield Exploration and Production Limited and present evidence of recovery for audit verification.
The report further indicated that the Commission was deprived of GH¢50,037,809.36 in revenue, which is crucial for financing its activities.
Section 91 of the Public Financial Management Act, 2016 (Act 921) mandates that the Board of Directors of a public corporation ensure the efficient management of the corporation’s financial resources, including the collection and receipt of monies due.
Additionally, Regulation 3 of the Petroleum Commission (Fees and Charges) Regulations, 2015 (L.I. 2221), requires that a contractor or operator pay the specified fees in Part 6 of the Second Schedule, based on the submitted production profile, before the commencement of petroleum production. This is applicable in the case of an indigenous Ghanaian company.
The Petroleum Commission was established by an Act of Parliament in 2011 (Act 821) following the discovery of hydrocarbons in commercial quantities. It was created to regulate and manage the utilization of petroleum resources and to coordinate policies in the upstream petroleum sector.
By Eugene Davis
