BOST Boss is a Liar - Staff

June 23, 2017

We are staff of the Bulk Oil Distribution Company Limited(BOST). We are responding to the palpable lies of our MD, Mr Alfred Obeng on the corruption at BOST to the media. We write sadly however anonymously because of the culture of silence and intimidation of interdiction of staff at BOST who stand up for the right things to be done.

 

Staff like Fred Ayarkwa (GM Terminal) and Nana Obeng (Trading Manager) were interdicted by the MD because they challenged the modus operandi of the dastard sale of the so called contaminated products on Open Credit indefinitely which has never happened in the history of the Company that an MD will sell cheaply products worth Ghs3.85 (if corrected) per litre at the pump for Ghs1.00 per litre to a company that was not duly registered at the Registrar-General Department and pocket over 10 million Ghana Cedis in his private pocket while Staff Q1 and Q2 Bonus for 2017 have not been paid.

 

In the ERA where our President has concerns on sole sourcing; the MD did not open it up for competitive bidding.

 

Below is our Response to Every False Statement with some documentary proof:

 

 

 

Statement 1: And in any case, the financial ability, competence, space and the company’s (buyer) commitment not to put the product back on the market should be duly considered.

 

Response:Movenpinaa Energy(the buyer) couldn’t prove that it had financial ability as the product was to it on the basis of Open Credit upon the instruction of the BOST MD; which is not the usual practice at BOST.

 

Movenpinaa has no track record to show any competence in handling such a sensitive product, since it was formed only in May 2017, and days after it had applied for the purchase of the product and there are doubts whether NPA has licensed them to engage in such a business.

 

Again Movenpiina couldn’t prove that it had adequate space to store the product, hence the product parked on the facility of ZUPOIL LTD.

 

 Statement 2:The transmission department at BOST duly inspected the premises of the off-taker (ZUPOIL LTD) and was convinced that their storage facility could accommodate the volume of product.

Response: There is no record to show that BOST had and has any transaction with ZUPOIL and therefore couldn’t have inspected its facility. The only company in the transaction based on BOST’s own document is Movenpinaa.

 

Statement 3:After the realization of the state of the product, BOST after a thorough analysis and consultation, had three (3) options to deal with the situation.

Response: There could have been more than three (3) options to BOST in handling this product.

There exist two idle Gasoil tanks at the Accra Plains Depot of BOST, which could have been prepared to hold this product until the Tema Oil Refinery comes on stream somewhere in July-August 2017 for correction.

 

Option 1: The first option is to have a corrective treatment of the off-spec product at TOR but this option was however not possible because TOR is not refining at the moment.

Response: TOR is not meant to be shutdown permanently. It is public knowledge that the Tema Oil Refinery is undergoing some maintenance and it expected to resume operation in July-August 2017. BOST could have waited for the next two months to correct the product and reap the full benefit. After all, the said product had remained in-tank since January 2017.

 

Option 2: The second option was to gradually inject a total of about seventy thousand (70,000) litres of the off-spec product into ten million litres (10,000,000) of normal product over a period which will take about ten (10) solid months for BOST to accomplish. The implication of this option is however the opportunity cost of losing the commercial value of over five million and seven hundred thousand Ghana Cedis (GHS 5,700,000). This arrangement would have deprived the BDCs of getting space to store their products. The capacity of the tank holding the off-spec product is twenty million litres (20,000,000 lts).

Response: This arrangement couldn’t have deprived BDCs of getting a space to store product, since there are alternative Gasoil tanks that BOST could have transferred the product into for gradual correction.

BOST has a 110 million liters capacity for Gasoil at the Accra Plains Depot, enough to hold product for other importers for a fee. There are enough records to show that from February 2017 till date, BOST has utilize less than 60% of its Gasoil storage capacity. Hence there is no pressure on BOST for space meant for other importers.

 

Option 3: This option involves the selling of the off-spec product at a competitive ex-depot price. Comparatively, the possible revenue loss here cannot outweigh the loss in Option 1 and 2.

Response:The price of One Ghana Cedis taking by BOST for this product for cannot be said to be competitive. It is not One cedi, thirty pesewas as claimed by BOST.

 

 Statement 4:Clearly, OPTION 3 was the ideal from a business point of view.

Response:Option 3 couldn’t have been the best as it has shown to be a drain on the country. One Ghana Cedis for such a product amount to causing financial loss to the state.

 

Statement 5:BOST sold the off-spec product at One cedi, thirty pesewas (1.30p) per litre as against the normal ex-depot rate of One Cedi, seventy –five pesewas (1.75p) for normal products. Thus 26 percent discount off the normal product and this is the normal and acceptable practice in the industry. The assertion that, the off-spec product should have been sold at two cedis, fifty pesewas (2.50p) is misleading because ex-depot price and pump price are completely different. BOST only sells products at ex-depot rate.

 

Response: There is enough record to show that BOST sold the product to Movenpinaa for One Cedi. It is rather Movenpinaa who sold the acquired product to another company called Macwest; for One Cedi, Thirty Pesewas. Hence the 265 discount claimed by BOST is misleading.

 

In fact, the off-spec product could have been sold by Goil at the pump through BOST-GO Energy for some Three Cedis, Eighty Pesewas (Ghs 3.80), if it had been corrected. This would have earned Ghana over Eighteen Million (18 Million) Cedis, through revenue from this three state oil companies, as well as in tax revenue to the state.

 

Concerned Staff of BOST

SIGNED

23/06/2017

 

 

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