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BOST slams ‘ignorant’ COPEC over GHS23m deal

  • SOURCE: 3news | TV3 Network Limited 3News
  • The Bulk Oil Storage and Transportation (BOST) has described as “a total display of lack of understanding of what happens in the oil industry” the allegations of  COPEC accusing  BOST of engaging in a “shady deal” that has cost the state  some GHS23 million.

    COPEC’s alleged that BOST sold 1.8 million barrels of crude oil to BB Energy, an oil marketing company, at a discount of $2 per barrel, causing the state to lose GHS23 million.

    In response to the allegation Tuesday March 13, Head of Fuel Trade of BOST, Albert Mantey argues that it is not out of place to give discounts on the commodity market. He explained it is economically wise to discount products in some instances.

    “If you’re buying anything and you’re ready to pay cash, instead of 90 days, 120 days you’re ready to do early settlement you can be granted discount because there is value for money, you can invest the money earlier and get returns,” he explained.

    He further explained that it was a prudent business decision they made to sell the product at Free On Board (FOB).

    “We decided to sell the product FOB, which is the prudent commercial decision because incurring additional cost which we don’t know how much it will be and hiring a freight, we don’t know what may happen, so we made the decision of selling the product at FOB and clearing our hands off it.”

    He added that the decision to refine the product after it was sold “was a decision BOST was not involved” for which reason COPEC cannot hold them liable.

    BOST maintains “it’s a total display of ignorance” for COPEC to allege that BB Energy, an oil marketing company that bought the product needed to be licensed before refining the oil at the Tema Oil Refinery (TOR). He emphasised that per fuel trade in the country, no company requires a license to refine a product at TOR and that was the case with BB Energy.

    Executive Secretary of COPEC, Duncan Amoah, had also alleged the MD of BOST threatened to kill him in 3 days upon the alarm he raised over the issue, an allegation Albert Mantey describes as childish, baseless, fallacious, and untruth, just there to tarnish the image of the MD.”

    A complaint had since been lodged with the police and the MD of BOST has been invited by the police for interrogation.

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