GNPC risks collapsing if the government continues to milk it – Committee blows alarm
The government has been cautioned by the Employment, Social Welfare and State Enterprises Committee of Parliament to stop using funds from the Ghana National Petroleum Cooperation for activities that are not within its purview.
Dr Kwabena Donkor who is a ranking member of the committee raised the alarm and said GNPC rather needs a regular inflow of funds to keep it running or else its account would hit the red zone.
The legislator for Pru East while diagnosing the current financial standing of GNPC in parliament said “The financials don’t speak well of GNPC. The future is bleak for GNPC and, therefore, we must insist that GNPC stays on the straight and narrow path in its operations”.
Supporting his claim John Jinapor who is also a ranking member of the Mines and Energy Committee in Parliament complained that the corporation’s low-profit margins could lead to its collapse.
Chronologically narrating how the corporation’s financials went down, he revealed that it slumped to 50% in 2018, 26% in 2019 and 0.3 in 2020.
The annual financial performance report on GNPC from the Committee on Employment, Social Welfare and State Enterprises showed same as the profit gradually started reducing from 50% in 2018 to making less than 1% profit in 2020.
Also, it was revealed that the company depends largely on gas sales to run due to reduced profit in crude oil sales.