[ 2017-05-22 ]

Ghana Revenue Authority is investigating the cost involved in the acquisition of the Atubo Gas Plant

Atuabo project was bloated by over $40m – Dr. Manteaw
The Co-chair of the Ghana Extractive Industry
Transparency Initiative (GHEITI), Dr. Steve
Manteaw is alleging that the one billion dollar
cost of the Atuabo Gas plant in the Western Region
was overpriced by 40 million dollars.

According to him, the Chinese company which
undertook the project, SINOPEC, engaged in
fraudulent activities in the execution of the
project.

Dr. Manteaw told Citi News that Ghana Revenue
Authority which is investigating the matter has so
far recouped about $15 million from the company
for bloating the contract sum.

“What for me is so most worrying is the fact
that through my investigations I discovered that a
particular plant that was imported by SINOPEC for
the project was overpriced by as much as $40
million and this did not catch the attention of
our public authorities. And even though I raised
the concern as far back as 2013, nobody took
serious notice of it.”

“Again what I find to be so disturbing about
this whole development is that Ghana Gas granted
some tax concessions to SINOPEC which is not
within its mandate. Because such mandates lies
with Parliament which is not unusual but when this
happens you need to go through the sector minister
to come to Parliament for ratification. We did not
seek Parliamentary ratification until 2016. The
project was actually completed in 2014 so how do
you come to Parliament in 2016 seeking
ratification for tax exemptions for a project that
is long been completed. That reduces the role of
Parliament to rubber stamping,” Mr. Manteaw
opined.

He further noted that he was surprised to discover
that “Parliament approved the [$152 million] tax
waivers without seeing the engineering,
procurement, construction and commissioning
contract with contains the fiscal exemptions.”

Background

SINOPEC was to construct the Atuabo Gas plant at
Ellembelle in the Western Region to provide gas to
meet the energy demands of the nation.

The $1 billion project which received stiff
opposition from some members of the New Patriotic
Party (NPP) in Parliament was later completed in
2014 and commissioned in 2015.

It at the time was producing over 140 million
cubic feet of gas per day to the Aboadze Thermal
Plant.

Logistics from Dubai

According to Mr. Manteaw as part of the processes
of procuring logistics, pipes and equipment for
the gas project, SINOPEC set up an offshore
company in Dubai by name FAZ which they procured
the materials from.

“Because our authorities did not follow through
these procurement activities of SINOPEC, the
prices that were quoted were not fair market
prices and so Ghana was shortchanged. I’m happy
that the GRA has acted lately and investigated the
matter. I’ve cooperated with them and given them
as much as information that I have.”

“Even though the investigations are inconclusive
yet, I’m informed that as much as GHc15million
has so far been recovered in additional taxes and
penalties imposed against SINOPEC,” he added.

Source - citibsinessnews.com

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