Ignore John Jinapor and Minority’s mischief, No wrongdoing in GNPC-LITASCO Phase 6 re-financing – Energy Ministry

The Ministry of Energy has dismissed an allegation by the Minority in Parliament that the GNPC-LITASCO Phase 6 re-financing arrangement is shrouded in secrecy.

The Ranking Member of Parliament’s Mines and Energy Committee, John Jinapor, had in a statement indicated the government is seeking to contract the facility using GNPC without the necessary Parliamentary approval.

But, a statement issued by the Ministry on Friday, September 22, 2023, said the ranking member and the minority were only out to soil the reputation of the President and some senior government officials. ‘We find their statement engineered, clearly, on the altar of political expediency,” the Ministry said in the statement.

Correcting the falsehoods
Correcting the “falsehoods”, the Ministry stated that, the work programme of the GNPC is approved every year by Parliament which includes loans they may need to execute their programme. “It is important to state that, this particular facility the minority mischievously alludes to is being re-financed for the sixth time. In the 2023 Work Programme of the GNPC, the corporation indicated clearly, their intentions to raise $ 620 million from the LITASCO facility to finance their work programme and proceeded to obtain the necessary parliamentary approval including the refinancing of the loan.”

The Ministry further stated that Parliament’s Mines and Energy Committee has since requested that the terms and conditions of the loan be brought to parliament in line with the oversight functions of the house, adding, “ this is trite and the right thing to do.”

No bad intentions
Stating that government actors in the matter have no intentions of hiding any part of the process in secrecy, the Ministry said, “With a clear understanding of the importance of parliamentary approvals in our democracy and the House not seen as a rubber stamp, government actors shall not under any circumstance finalise the terms and conditions of a loan before approval by parliament.”

The Ministry emphasised that the government knows that, it needs approval and not a ratification from parliament.

“Now, GNPC settled on the terms and conditions of this facility with LITASCO just last week Thursday, September 14, 2023, duly obtaining its Board’s approval. The record will show, that on the same day, the document was sent to the Ministry of Energy for a ‘no objection’. After the Ministry of Energy expressed its no objection, it then forwarded the document to the Ministry of Finance for its ‘no objection” and approval too, in line with the dictates of the Public Financial Management Act (PFMA). MOF’s approval was given on Friday, September, 15, 2023. The document is now due for Parliament when the House reconvenes next month for approval.”

Seeking political gains
Based on that, the Ministry chastised the ranking member and the minority group for their pronouncements, especially as they knew the procedural requirements.

“The only possible reason one can latch unto for the minority’s action is to cause disaffection for the government for possible electoral gains, given the proximity to the electioneering campaign season” the Ministry said.