The present debt of the Tema Oil Refinery, which has remained inactive for the previous 4 years, stands at $517 million, the performing Managing Director of TOR, Edmund Kombat, has stated.
Mr Kombat stated the debt, which the brand new administration got here to satisfy, was present process verification.
He stated the $517 million is the debt scenario as of December 2024.
“We’re doing that verification and as soon as we try this verification and authentication of what we have now been capable of convey down, that shall be communicated publicly,” he stated.
Supply of debt
In an engagement with the Parliamentary Choose Committee on Power at Senchi on Sunday (June 22), Mr Kombat stated the debt was triggered by commerce money owed, third events and likewise legacy money owed the place crude was equipped nevertheless it was not paid.
“There have been occasions that the Ministry of Finance up to now had given some funds to TOR and a few of it, for instance, was grants after which after they entered into the settlement with the IMF, the IMF requested them to reclassify it as debt.
“So, these issues have amassed to that amount of cash and I feel the final time TOR traded, among the trades weren’t hedged,” he stated.
Mr Kombat and officers of TOR had appeared earlier than the 17-member committee, chaired by Emmanuel Bedzrah, to transient them on the programme and workplan of TOR this 12 months in addition to the challenges it confronted.
Mr Kombat stated there was numerous publicity which led to the present debt of TOR ballooning.
“However we’re right here to ensure that that’s stopped and isn’t repeated once more,” he stated.
He advised the committee that President John Dramani Mahama’s agenda had been to revive the economic system.
He stated one of many issues that the President had been speaking about was to revamp the TOR.
He stated since 2019 the residue fluid catalytic cracking (RFCC) had not been function and since 2021 the crude distillation unit had additionally not run.
As a brand new administration of TOR, he stated the very first thing that they did was to evaluate the plant to find out its readiness and the potential for bringing it again.
“After assessing the plant, we realised that the plant was in good condition and that with a number of technical works we might get the plant again and that’s what we have now been critically engaged on.
He identified that the refinery plant had been out of practice because of debt that had amassed through the years.
“We now have tried to revalidate among the money owed, do renegotiation and reconciliation.
“And because of this, we have now labored on it and among the numbers are coming down and on the applicable time we are going to make sure that the figures are out,” he stated.
With the refinery not audited its monetary account for the previous six years.
“Since 2019, TOR has not had an audited account and one of many issues that we determined to do was to concentrate on that and produce exterior auditors.
“And we hope that by the top of subsequent month, all six years shall be prepared,” he stated.
To show the fortunes of the refinery round, he stated steps had been taken do change administration by re-orienting the employees to refocus them on efficiency, retool them and provides all of them the assist that they wanted.
For instance, he stated there had been numerous disenchantment of employees over normal circumstances of service.
“One of many issues we did was to take a seat by means of and take heed to them and we had about 300 employees petitioning us.
“We reviewed their petition and all those that haven’t been promoted for a number of years got due,” he stated.
On the present stage of the corporate, he stated administration had been capable of ringfence and construct up some internally generated funds in the direction of vital upkeep that was required to convey the refinery again.
On key excellent points, Mr Fight stated the refinery had been plagued the refinery had been the power sector levies Act (ESLA) receivables.
“A few of it has been used to pay among the money owed on behalf of TOR and we’re appreciative of presidency for that.
“However there may be nonetheless some excellent and we’re doing reconciliation with the Ministry of Power and Ministry of Finance to get these excellent charges to make sure that the President’s imaginative and prescient of bringing the refinery again is achieved,” he stated.
He added that: “I can confidently inform you that earlier than the 12 months ends, TOR shall be again”.
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