THE Bulk Oil Storage and Transportation Company Limited (BOST) has been paying TSL Logistics Ghana Limited $3.6 million annually.
TSL Logistics Ghana Limited is a subsidiary of a Nigerian Company which is into providing chain management solution.
This means TSL receives a monthly payment of $300,000 for the management of BOST’s petroleum storage facilities within the Accra Plains Depot with effect from January 1, 2016.
According to The Finder, the revelation was contained in the management accounts of BOST covering January to September 30, 2016, sighted.
In a deal that was rocked with controversy when it was signed TSL’s monthly charge was reduced from $660,000 to $300,000 a year exclusive of utility charges, taxes and this was achieved through negotiations, according to BOST.
This means TSL received $7.9million ($7,920,000) annually prior to the reduction
Many people have wondered why such huge payments are made to TSL since because BOST pays the salaries of staff at the tank farms.
BOST supports operations of TSL.
Meanwhile, BOST has said that the TSL Group provides world-class comprehensive product handling services at BOST’s tank farms, such as General Operation and maintenance work as well as inventory management and product dispatch.
The management account indicated the significant revenue increase in the sector is enough evidence of their good work.
Terminal Operations earned a net profit of GH₵8.1million (GH₵8,126,343) after set-off of product loss replacement arrangement of GH₵3.8million (GH₵3,865,535).
BOST said this is due to the significant improvement in storage and rack revenues and prudent expenditure in managing, which is done by TSL Group.