Kosmos promises more oil

By Charles Takyi-Boadu

Posted: The Chronicle Friday, January 16, 2009

If what experts are saying is anything to go by then there are strong indications that Ghana is likely to join the league of the world’s Oil-rich producing Countries. Experts from Kosmos Energy have told President Mills that the latest discovery in its exploration puts Ghana in the world class category.
Chairman and Chief Executive of the company, James Musselman, who led a delegation of the company’s Management to the Osu Castle to congratulate President Mills on his election as President of the Republic expressed optimism that by the second half of year 2010, Ghana would start pouring oil in commercial quantities.
The company also took the opportunity to brief the President on the current state of affairs at the oil fields of Cape Three Point,
where intensive exploration works are still ongoing.
Mr. Musselman assured President Mills and Ghanaians of the preparedness of the company to intensify their search for more oil on the field.
Officials of the company paid glowing tribute to the government and people of Ghana for the way and manner in which they conducted themselves during the recent Presidential and Parliamentary elections, in spite of the heat that characterised the campaign process.
President Mills on his part thanked management and staff of Kosmos Energy for the work done so far.
He advised management to be open in their activities and operations in order to strengthen the confidence reposed in them by the government and people of Ghana, whilst emphasising the need to employ and train local hands on the job, to enable them to acquire and develop the needed skills.
He however, cautioned them against practices that could affect the environment. The President also cautioned that his government would not hesitate to punish Investors who take undue advantage of the people. For that matter, he asked management of the company to endeavour to fulfil their corporate social responsibility by striving to bring development to the area of their operation.
Though the government has promised to support foreign Investors in their business endeavours, President Mills entreated these companies to conduct their activities and operations within the confines of the laws of this country.
The President further entreated the management of Kosmos Energy to procure goods and services from local sources in order to promote business in the Western region.
Somewhere last year, Kosmos Energy announced that the company has made a second significant oil discovery offshore of the Cape Three Points Block.
It is estimated that African countries own 8% of world oil reserves.
An estimated $200bn in revenues will flow into African government treasuries over the next 10 years as new oilfields open up throughout the Gulf of Guinea.
Experts in the industry foresee that oil will bring the largest influx of revenue in the continent’s history, and more than 10 times the amount western donors give each year in aid.
Five countries including Nigeria, Libya, Algeria, Egypt and Angola dominate Africa’s upstream oil production.
Together they account for 85% of the continent’s oil production and are, in order of decreasing output.
Other oil producing countries are Gabon, Congo, Cameroon, Tunisia, Equatorial Guinea, the Democratic Republic of the Congo, and Cote d’Ivoire.
Nigeria is estimated to have 3.62 billion barrels of proven oil reserves as of January 2007. The government plans to expand proven reserves to 40 billion barrels by 2010. Majority of the reserves are found along the Niger delta in southern Nigeria.
Nigeria has a total production capacity of 3 million barrels per day, including 2 million barrels onshore and 1 million offshore. Nigeria is the largest oil producer in Africa, 11th largest producer in the world.
Libya has oil reserves estimated at 39 billion barrels. However, experts say the Arab country has the potential for further oil discovery, with only 25% of potential ‘oil land’ by the oil companies due to sanctions and stringent fiscal terms imposed on foreign oil companies.
In a related development, a delegation of the government of India also called on the President, at the seat of government to congratulate him on his election as President of the Republic.
The delegation, which was led by the country’s External Affairs Minister, Anand Sharma and the Indian High Commissioner to Ghana, Ruchi Ghanashyam assured Ghana of India’s support to Ghana.
They also expressed their willingness to strengthen cooperation with Ghana, tracing ties between the two countries as dating back to the days of the Country’s first Prime Minister, Jawarlal Nehru and Ghana’s Osagyefo Dr. Kwame Nkrumah.

Intense lobbying begins

…as Mills selects his cabinet

By Charles Takyi-Boadu

Posted: The Chronicle Thursday, January 15, 2009

Intense lobbying has begun for various positions in the new government, as President John Evans Atta Mills gets set to name members of his cabinet in the next couple of weeks.
Party members of the ruling National Democratic Congress (NDC) and some Executives of other smaller political parties which joined forces with the NDC to wrestle power from the New Patriotic Party (NPP) in the just-ended Presidential elections, have started serious lobbying of members of the nominations committee of the transitional team.
Some of the people who were seen parading on the corridors of the International Conference Centre, where the transitional team has been sitting included newly elected Members of Parliament (MPs) and some leaders and National Executives of the Reform Democratic Party (RDP) and United Renaissance Party (URP).
They were seen making frantic efforts to catch the eyes and attention of members of the nominations committee, some of who they followed closely at a time when business of the day had not begun, and during the lunch break.
Even though the faces and names of some of these individuals jockeying for positions were not familiar to members of the nominations committee, they forced to make friendly overtures with them.
In instances where members of the committee were finding it difficult to make such individuals out, some of them were compelled not to only mention their names, but the constituencies they came from and their titles.
Others had also travelled from their bases in Europe to lobby for Ambassadorial and other positions in government. This reporter overhead one of such persons who had travelled all the way from his base in Switzerland to Ghana, to lobby for political appointment, asking another person to help him secure a position as an Ambassador.
The Executive Director of Gospel Evangelical Crusade and Providence Foundation (GOEVAC), Reverend Kwarteng Amaning, received probably the worst shock of his life, after making one of such friendly overtures to Vice President John Dramani Mahama.
Just as the Vice President stepped out of his vehicle, he was approached by the founder and leader of the URP, Kofi Wayo who after friendly exchanges introduced the man of God to him, asking the Veep to grant him audience since according to him, he had some interesting information he could share with him.
The Vice President obliged in good faith and asked the man of God to see him at his office. Minutes after the Vice President left the scene to his office, a member of the NDC who was present sought to expose Rev. Amaning by calling him a traitor and an opportunist, since according to him the man of God had at a point in time gone to a radio station to shower praises on former President Kufuor and the NPP government, whilst condemning the NDC.
This resulted in heated verbal exchanges between the party member and the pastor who was in his pastoral attire. The Pastor tried to defend himself by saying that the gentleman was telling lies, stressing that he (the party supporter) does not know what he (the pastor) has done for the party.
Seeing the turn of events, some of party members around decided to calm the nerves of the two individuals, stressing that the venue was not the appropriate place to settle such scores.

LAW ON CAUSING FINANCIAL LOSS MUST STAY

…to check corrupt public officials

By Charles Takyi-Boadu

Posted: The Chronicle Tuesday, January 13, 2009

Whilst some politicians in the country are craving for the law on causing financial loss to the state to be repealed from the statute books, for fear of it being used as a tool for political vindictiveness against political opponents, anti-corruption agencies, such as the Ghana Integrity Initiative (GII), is asking for it to be strengthened to check public officials from corrupt practices.
Those who have called for the repeal of the law on ‘Wilfully causing financial loss to the State’ argue that it is a highly controversial law that could be subjected to elastic interpretation.
In addition, they claim that it could stifle official initiative and discretion. However, the GII believes that if governments want to remain committed to the fight against corruption and its related incidence, there was the need to strengthen the law to give meaning to the mantra of ‘Zero tolerance for Corruption.’
In the wake of the controversy surrounding the use and application of the law, the Executive Secretary of GII, Vitus Azeem, says there is need to take a second look at it in order to erase any doubts of abuse.
He was speaking in an exclusive interview with The Chronicle, over the weekend. “I think the law is a good law; it may have some weaknesses, which can lead to people abusing it, but then that is no reason why it should be scrapped,” he emphasised.
Instead, he noted that those weaknesses should be looked at again, and addressed in the form of an amendment.
To him, the perception of politicians or governments in power abusing it can be addressed with a government which is actually committed to fighting corruption, and operating in a transparent way.
“In that case, the law seeks to ensure that public officials, when they are taking decisions, or when they are transacting public business, will make sure that they exercise due diligence, to avoid unnecessary losses to the country,” he noted, stressing “As far as I’m concerned, I think it is a good law and must be retained.”
As the law currently stands, Mr. Azeem said he was not sure whether or not there was indeed a need for it to be amended taking into consideration the fact that he is not a lawyer.
However, he noted that if those with technical knowledge in law believe there are sections of the law which need to be amended, they should proceed for it to be done, since it would save the nation.
A noted Economist, Professor George Ayittey, also shared similar thoughts with Mr. Azeem, since according to him, “if it is scrapped, there would be no incentive or mechanism for holding officials accountable for their actions in office, any incompetence or ineptitude is just passed over.
“If you believe in the rule of law, you should enforce that law, since causing financial loss to the state is a criminal activity,” he stressed.
Asked whether the law was being used as a tool for political vindictiveness of political opponents, he noted, “well that’s what those are guilty of malfeasance will say.”
Furthermore, Prof. Ayittey said, “if we have a Minister, who because his own incompetence or ineptitude causes losses to the state, that Minister should be held accountable and responsible. If it’s a lapse of competence, that Minister should be fined, sacked, and should be held accountable.”
Some political commentators and social analysts have called for a review of the law on “Wilfully causing financial loss to the State”.
Somewhere mid last year, the then Minority and now Majority leader in Parliament, Hon. Alban S. K. Bagbin, served notice that he would oppose any move to repeal of the law on ‘Wilfully causing financial loss to the State’.
He thinks that the First Parliament, under the Fourth Republic, was right in passing the law, and therefore it should be retained. “I think Parliament was right in passing the law on causing financial loss to the state, and I will resist any move to repeal it,” said.
Hon. Bagbin made these remarks, when commenting on an answer by Justice Jones V. M. Dotse, an Appeal Court Judge who appeared before the Appointments Committee of Parliament, on his nomination by the President, as a Supreme Court judge.
When asked about his views on the law, Justice Dotse said it was “dangerous” for him to comment on the law, since some of the cases before him in court bordered on it.
He, however, said it had “a negative backlash, considering the manner it has been applied.”
In that regard, he noted that if in its wisdom, Parliament as an institution believed there was the need to repeal it, he had no objection.
The Director of the Ghana Institute of Journalism (GIJ), Mr. David Newton, also had cause to express worry about the said law, since in his opinion, the law was vague, stressing that its merits only lay in the discretion of the judge.
Mr. Newton said even though there was the need for a law to be in place. to control the actions and inactions of public officials, it must be clearly stated as to the point at which one becomes guilty of causing financial loss to the state.
The law on causing financial loss to the state was passed in 1993, as an amendment to the Criminal Code.
It was sparingly applied under the National Democratic Congress (NDC) administration, but during the reign of President Kufuor and his New Patriotic Party (NPP) government, the law saw some former Ministers of the NDC regime going to jail.
Those jailed under the law and pardoned include Kwame Peprah and the late Victor Serlomey, Finance Minister and Deputy respectively, Dan Abodakpi, Trade and Industry Minister, Ibrahim Adams, Food and Agriculture Minister, and George Sipa-Yankey, a former Chief Director at the Finance Ministry, as well as Mallam Yusif Issah, a former Youth and Sports Minister.
The former Chief Executive of the Ghana National Petroleum Corporation (GNPC), Tsatsu Tsikata, was also sent to jail by the same law.