The Chief Executive Officer of the Chamber for Bulk Oil Distribution Companies Senyo Horsi has rejected revelations that government may not abide by the agreed payment plan to clear debts owed banks by Bulk Oil Distribution Companies.
Government is currently indebted to about 17 Bulk Distribution Companies in excess of 500 million dollars.
In government’s bid to clear debts owed BDC’s, Citi Business News understands a payment plan was agreed by the BDCSs, the Ghana Association of Bankers and the Finance Ministry in which payment of the debt will be made through a Special Purpose Vehicle (SPV) to be known as the legacy bond limited and shared fairly among the debt holding banks.
However new documents cited by Citi Business News reveal that the agreement may be ditched by government authorities.
Speaking to Citi Business News Senyo Horsi said he is confident government will go by the contract agreed by all parties.
“For me am confident the Ministry of finance would want to execute and respect the structure laid down and has agreed to for the debt to be paid within the period set. I have very limited reason to want to doubt their commitment to the structures and so I would encourage industry not to be afraid. I think this will be properly resolved.”
Though Senyo Horsi stated that he will be quite surprised if government decides not to to abide by the agreement reached with all parties he insisted that government was committed to ensure that the parties received what was due them.
‘I think that would bother on the ministry and its commitment that it made to the banking industry and us the BDC’s as well. But I don’t see that happening. You know when debts like this are being paid you hear all kinds of rumours but I trust the minister and his deputies and their work”, He stated.
Meanwhile documents sighted by Citi Business News reveal that the parties involved have begun raising concerns following moves by the Finance Ministry to rather pay the BDCs through their own private accounts and ditch the agreed plan.
Letters sighted by Citi Business News to authorities cautioned that any move by government not to go by the agreement will have dire consequences on the transparency and equitable allocation of funds to the banks and also derail the restructuring objectives and the significant efforts made so far by all parties involved.
Citi Business News has learnt the Finance Ministry is expected to disburse 400 million cedis this month [September] to clear a large chunk of the debt, but sources familiar with the development say the cash may not go through the SPV as agreed by stakeholders.
According to sources within the Ministry of Finance, Hon. Cassiel Ato Forson, the deputy minister in charge of the ministry has been given the charge to ensure the agreed process between the parties and government is carried through.