Returns on Ghana Petroleum Fund declining – 2021 Auditor General’s Report

Returns on Ghana Petroleum Fund declining – 2021 Auditor General’s Report

The Ghana Petroleum Funds has recorded a decline in returns on investments, from about $17.5 million in 2020 to about $14.19 million in 2021, according to the 2021 Auditor General’s Report.

“The total returns of $14.19 million on the Funds invested represent a 19.15% reduction from that of 2020 ($17.55 million) even though the Funds invested continue to increase over the years. There is a risk that a continuous decline in the returns on the investment will affect the future value of the Funds,” the report indicated.

The decline was in spite of an improvement in operational efficiency. According to the report, a total amount of $2.57 million was still outstanding from surface rentals as of 31st December 2021.

Eight companies, including Swiss African Oil Company, Britannia–U and GOSCO Limited, are indebted to the state. Non-payment of these amounts has reduced funds available to the Petroleum Funds, the report said.

To maximise the return on investments to the Fund, therefore, it is expedient that the investment mix for both the Ghana Stabilization Fund and the Ghana Heritage Fund be reviewed, the report said.

Further, it recommended maximum efforts to recoup outstanding amounts from defaulting companies in order to generate substantially for the Petroleum Fund.

Source: Energy Ghana

ENERGY GHANA MAGAZINE

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