In a swift and urgent call to action, the Minority in Parliament has demanded an immediate halt to the government’s intentions of using proceeds from the TEN oil field as collateral for a substantial $431 million loan facility from LITASCO.
The Minority has raised concerns, labeling this arrangement as illegal, and expressing fears that the TEN oil field would be obligated to produce a minimum of 3.8 million barrels of crude oil annually for LITASCO as part of the loan agreement.
John Jinapor, the Ranking Member on the Mines and Energy Committee, addressed journalists on Wednesday, September 20, shedding light on the matter. He emphasized that despite Parliament’s prior rejection of the Ghana National Petroleum Corporation’s (GNPC) request to secure the loan, citing the need for the terms and conditions of the agreement, the presidency has directed GNPC to seek board approval for the loan without obtaining parliamentary consent.
Jinapor stated, “To our utmost shock, the minority side has become aware that the presidency is using coercive force to compel the GNPC to proceed and execute this loan agreement without parliamentary approval.” He added, “This is unconstitutional, this is unlawful, and this is a blatant disregard for the directive and resolution of Parliament.”
The Minority also extended commendations to GNPC board members who have voiced their opposition to the loan agreement. Jinapor applauded the board’s courageous stance, emphasizing the need to support their principled position.
As a stern warning, Jinapor underscored that proceeding with the loan agreement without parliamentary agreement would constitute an act of unconstitutionality. The Minority’s call to halt this controversial collateralization highlights their commitment to upholding due process and the rule of law.