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The Chief Executive of the Ghana National Petroleum Corporation
(GNPC), Alex Mould, has revealed that the state-run oil giant will
soonbe in the international market to finalize the transaction
covering a$400 million dollar loan that will support new capital
investments.
GNPC's intention to seek foreign cash for its operations without first
obtaining Parliamentary approval has triggered a never-ending
controversy and a court action to stop the deal.
In an exclusive interview with Citi News in the United States City of
Houston, Mr. Mould made it clear that the team at GNPC has no
intention of seeking Parliamentary approval, especially as a court in
Accra threw out an injunction application filed by some Minority
Members of Parliament (MPs) against the transaction early this year.
He argued that in the ENI transaction, there was a portion of that
transaction that the GNPC felt was not risky and as such should
notattract the rate of return similar to the rate of return that is
paid to investors that do risky businesses.
"If you are going to explore for oil, that is very risky, if you going
to build a pipeline and a receiving facility to connect the gas that
is being produced to our existing pipeline, that is not risky and GNPC
believes that we should be able to fund such things," he added.
International market credibility
Alex Mould further noted that "the international market has proven
that the GNPC is capable of doing this without having government
support this transaction.
As a stand alone project financing, GNPC is able to do this. I think
GNPC should be heralded, its one of the organization just like COCOBOD
who can go into the international market with the name of Ghana to
raise money and we will continue doing this.
"$400 million loan The GNPC Chief Executive said because the court
dismissed the injunction application filed against them, "we are going
ahead and in a few weeks we should complete that transaction.
With the oil prices where they are we should be looking at something
between 300 and 400 million, that is exactly what we need for that
project."
I don't fear Parliament
When asked by Citi News' Richard Dela Sky whether it was right to
subject the loan to parliamentary scrutiny despite calls, Alex Mould
insisted that "I have no fear of going to Parliament, the question is,
do we have to go to Parliament? Its not why doesn't GNPC go to
Parliament.
If you don't go to somebody for approval why do you go to him?"
Background
In January this year, the commercial division of the Accra Fast Track
High court dismissed an injunction application filed before itby three
opposition lawmakers, praying the court to stop the GNPC from
contracting a $700 million dollar international loan without
Parliamentary approval.
The Plaintiff – Mathew Opoku Prempeh, Dr. Anthony Akoto Osei and
Samuel Atta Akyea – had prayed the court to order the GNPCto suspend
any transactions covering the intended loan until thesubstantive case
is decided.
However, the presiding Judge, Justice Mrs. A Bartels-Kodwo, did not
accept their plea and dismissed the application.
The MPs have since served notice they will appeal the decision but it
is unclear if they have filed any papers at the Appeals Court.
Credit: Citifmonline.com
