News / Africa

Ghana to Improve Transparency in Oil Contracts

Joana Mantey
In Ghana, efforts are underway to boost transparency in the country’s newly developed oil industry, which some say will likely double economic growth. New rules require the quarterly disclosure of contract agreements and oil revenues as a way of avoiding the corruption that that many African oil exporters call the “resource curse.”

The rules are included in two new laws:  the Petroleum Commission Act and the Petroleum Revenue Management Act. They aim to empower citizens to demand accountability from government as Ghana develops its petroleum sector.

Stephen Manteaw, the chairman of the Civil Society Platform on Oil and Gas, describes the legislative push towards openness as a rarity in Africa. And, he says unfortunately, regulations are yet to be developed to make one of the laws workable.  In particular, a public interest and accountability committee has not been set up to monitor the management and use of petroleum revenues. It would also provide a platform for public debate on the spending of the revenues

“There is absence of regulations to the Petroleum Revenue Management Act," he says. "We [had] a similar [issue] in the mining sector where we had the Mining Act in 2006, but it was only in 2012 that regulations to the act were developed. When you have a situation like this, it becomes very difficult to operationalize the law that have been developed to manage the sector.”

Manteaw says a Public Interest and Accountability Committee set up to monitor compliance with the law is poorly funded. The institution has no office space and is currently operating with the support of the German Development Agency and of non-governmental organizations such as Revenue Watch Institute. 

Another challenge confronting Ghana’s oil industry is the failure of companies to reach a target of 12 thousand barrels per day. Current production levels fall between 60 thousand and 80 thousand barrels per day indicating shortfalls in the government’s projected revenues.

Meanwhile, foreign companies continue to dominate the sector. Government policies meant to encourage the participation of local business in the industry is not making much impact. Manteaw attributes the problem to high fees the government has established for any companies wanting to get involved in the lucrative oil business.

“In my view," he says, "these fees are exorbitant. Some of the companies are required to have turnover of up to about five million dollars and pay a subscription fee of 30 thousand dollars renewable on the payment of 25 thousand dollars. This, to many Ghanaians is exorbitant, in fact, unaffordable”.

The government is also encouraging the use of local expertise, goods, services and financing arrangements in the oil sector.

Kwame Djantua is the chief executive officer of the African Energy Consortium.  He says the Petroleum Commission which regulates such policies must do more to train Ghanaians.

“When will Ghanaians take control of the oil industry? What did Brazil do?," he asks. "They invested in their people for their people to go and learn and come back. Trinidad and Tobago did the same, Norway did the same. Why can’t we do the same for Ghana?’

Djantua is not sure whether the oil industry has been managed well in 2012.   For example, by law, oil company agreements with the government must be made public.  But he says the details of some contracts have not yet been disclosed.

“Another issue," he says, "is this collateralization of the revenue and where 70% of the revenue is put into the consolidated fund. How do you target the revenue into projects? Once it goes into the consolidated fund how do you supervise how that money is being spent.”

Djantua says government is voted into power to serve the people, so it has to be open about how oil money is being spent. If it fails to do so, Ghana could join the ranks of other African oil producing nations – where proceeds are unaccounted for and little of it benefits the average person.

Listen to report on Ghana's oil industry
Listen to report on Ghana's oil industryi
|| 0:00:00
...    
🔇
X

You May Like

Yemen Brings US, Iran Closer to Naval Face-off

US sending two more ships to waters off coast of Yemen to take part in 'maritime security operations' More

Minorities Become Majority Across US

From 2000 to 2013, minorities became the majority in 78 counties in the United States. Here's where those demographic shifts are happening More

Japan's Maglev Train Breaks Own Speed Record

Seven-car 'magnetic levitation' train traveled at more than 600 kilometers per hour during test run Tuesday More

This forum has been closed.
Comment Sorting
Comments
     
by: Ernest from: Chicago
December 21, 2012 3:50 PM
Your numbers in regard to production target does not add up, it is wrong.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
New Brain Mapping Techniques Could Ease Chronic Paini
X
Shelley Schlender
April 20, 2015 7:03 PM
Pain has a purpose - it can stop you from touching a flame or from walking on a broken leg. As an injury heals, the pain goes away. Usually. But worldwide, one out of every five people suffers from pain that lasts for months and years, leading to lost jobs, depression, and rising despair when medical interventions fail or health experts hint that a pain sufferer is making it up. From Boulder, Colorado, Shelley Schlender reports that new methods for mapping pain in the brain are providing validation for chronic pain and might someday guide better treatment.
Video

Video New Brain Mapping Techniques Could Ease Chronic Pain

From Boulder, Colorado, Shelley Schlender reports that new methods for mapping pain in the brain are providing validation for chronic pain and might someday guide better treatment.
Video

Video Hope, Prayer Enter Fight Against S. Africa Xenophobia

South Africa has been swept by disturbing attacks on foreign nationals. Some blame the attacks on a legacy of colonialism, while others say the economy is to blame. Whatever the cause, ordinary South Africans - and South African residents from around the world - say they're praying for the siege of violence to end. Anita Powell reports from Johannesburg.
Video

Video Italy Rescues Migrants After Separate Deadly Capsize Incident

Italy continued its massive search and rescue operation in the Mediterranean Monday for the capsized boat off the coast of Libya that was carrying hundreds of migrants, while at the same time rescuing Syrian migrants from another vessel off the coast of Sicily. Thirteen children were among the 98 Syrian migrants whose boat originated from Turkey on the perilous journey to Europe.
Video

Video New Test Set to Be Game Changer in Eradicating Malaria

The World Health Organization estimates 3.4 billion people are at risk of malaria, with children under the age of five and pregnant women being the most vulnerable. As World Malaria Day approaches (April 25), mortality rates are falling, and a new test -- well into the last stage of trials -- is having positive results in Kenya. Lenny Ruvaga reports for VOA from Nairobi.
Video

Video Are Energy Needs Putting Thailand's Natural Beauty at Risk?

Thailand's appetite for more electricity has led to the construction of new dams along the Mekong River to the north and new coal plants near the country's famous beaches in the south. A proposed coal plant in a so-called "green zone" has touched off a debate. VOA's Steve Sandford reports.
Video

Video Overwhelmed by Migrants, Italy Mulls Military Action to Stabilize Libya

Thousands more migrants have arrived on the southern shores of Italy from North Africa in the past two days. Authorities say they expect the total number of arrivals this year to far exceed previous levels, and the government has said military action in Libya might be necessary to stem the flow. VOA's Henry Ridgwell reports.
Video

Video Putin Accuses Kyiv of ‘Cutting Off’ Eastern Ukraine

Russian President Vladimir Putin, in his annual televised call-in program, again denied there were any Russian troops fighting in Ukraine. He also said the West was trying to ‘contain’ Russia with sanctions. Henry Ridgwell reports on reactions to the president’s four-hour TV appearance.
Video

Video Eye Contact Secures Dog's Place in Human Heart

Dogs serve in the military, work with police and assist the disabled, and have been by our side for thousands of years serving as companions and loyal friends. We love them. They love us in return. VOA’s Rosanne Skirble reports on a new study that looks at the bio-chemical bond that cements that human-canine connection.
Video

Video Ukrainian Volunteers Search for Bodies of Missing Soldiers

As the cease-fire becomes more fragile in eastern Ukraine, a team of volunteer body collectors travels to the small village of Savur Mohyla in the what pro-Russian separatists call the Donetsk Peoples Republic - to retrieve bodies of fallen Ukrainian servicemen from rebel-held territories. Adam Bailes traveled with the team and has this report.
Video

Video Xenophobic Violence Sweeps South Africa

South Africa, long a haven for African immigrants, has been experiencing the worst xenophobic violence in years, with at least five people killed and hundreds displaced in recent weeks. From Johannesburg, VOA’s Anita Powell brings us this report.
Video

Video Apollo 13, NASA's 'Successful Failure,' Remembered

The Apollo 13 mission in 1970 was supposed to be NASA's third manned trip to the moon, but it became much more. On the flight's 45th anniversary, astronauts and flight directors gathered at Chicago's Adler Planetarium to talk about how the aborted mission changed manned spaceflight and continues to influence space exploration today. VOA’s Kane Farabaugh reports.
Video

Video Badly Burned Ukrainian Boy Bravely Fights Back

A 9-year-old Ukrainian boy has returned to his native country after intensive treatment in the United States for life-threatening burns. Volodia Bubela, burned in a house fire almost a year ago, battled back at a Boston hospital, impressing doctors with his bravery. Faith Lapidus narrates this report from VOA's Tetiana Kharchenko.
Video

Video US Maternity Leave Benefits Much Less Than Many Countries

It was almost 20 years ago that representatives of 189 countries met at a UN conference in Beijing and adopted a plan of action to achieve gender equality around the world. Now, two decades later, the University of California Los Angeles World Policy Analysis Center has issued a report examining what the Beijing Platform for Action has achieved. From Los Angeles, Elizabeth Lee has more.
Video

Video Endangered Hawaiian Birds Get Second Chance

Of the world's nearly 9,900 bird species, 13 percent are threatened with extinction, according to BirdLife International. Among them are two Hawaiian honeycreepers - tiny birds that live in the forest canopy, and, as the name implies, survive on nectar from tropical flowers. Scientists at the San Diego Zoo report they have managed to hatch half a dozen of their chicks in captivity, raising hopes that the birds will flutter back from the brink of extinction. VOA’s George Putic reports.
Video

Video Exhibit Brings Renaissance Master Out of the Shadows

The National Gallery of Art in Washington has raised the curtain on one of the most intriguing painters of the High Renaissance. Mostly ignored after his death in the early 1500s, Italian master Piero di Cosimo is now claiming his place alongside the best-known artists of the period. VOA’s Ardita Dunellari reports.

VOA Blogs