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Court throws out GNPC $700m loan injunction

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The Commercial Court in Accra Wednesday dismissed an injunction application that sought to restrain the Ghana National Petroleum Corporation (GNPC) from accessing a $700 million loan facility.

Three New Patriotic Party (NPP) Members of Parliament (MPs) filed a motion at the court to seek an order to restrain the GNPC from contracting a loan of $700 million from any financial institution within or outside Ghana.

According to them, the GNPC contracting, procuring, securing or otherwise acquiring or drawing down on the loan facility or any other loan without prior approval from parliament is null and void and therefore wanted the court to restrain them.

Dismissing the injunction application, the court presided over by Justice Mrs.A.Bartels-Kodwo said the applicants failed to establish a prima facie case.

They are Dr Anthony Akoto Osei, MP for Tafo Pankrono; Dr Mathew Opoku Prempeh, MP for Manhyia South, both in the Ashanti Region, and Mr Samuel Atta Kyea, MP for Abuakwa South in the Eastern Region.

However, two other applications filed by the applicants would be heard by the court.

They are seeking the court to declare that the GNPC contracting, procuring, securing or otherwise acquiring or drawing down on the loan facility or any other loan without prior approval from parliament was null and void.

According to the GNPC the loan facility would be used to augment its working capital, including oil and gas trading capital needs, build up capital since the state capitalisation for its operations was supposed to end 15 years from the commencement of the Petroleum Revenue Management Act in 2011.

The GNPC also intended to use the facility to ensure lower gas price for Ghanaian consumers and for cheaper electricity.

Lawyers for the applicants today represented in court were Egbert Fabille and Nana Asante Bediatou and the lawyers for the defendant in the person of GNPC were Emefa Heartcastle and Sefakor Akpabla.

Source; Daily Graphic

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Reporting Oil and Gas project was launched on 4th June 2009atTakoradi, Western Region, Ghana by Penplusbytes (PPB – www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector
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