GNPC on the brink of bankruptcy – State Enterprises committee of Parliament warns

The Committee on Employment, Social Welfare and State Enterprises of Parliament is asking the government to desist from using the Ghana National Petroleum Corporation (GNPC) as its cash cow in funding activities unrelated to its mandate.

Speaking in Parliament on Tuesday, the Ranking Member on the committee, Dr. Kwabena Donkor said “without the injection of new funds, GNPC is on the brink of bankruptcy.”

“The financials don’t speak well of GNPC. The future is bleak for GNPC and, therefore, we must insist that GNPC stays on the straight and narrow path in its operations.”

The Ranking Member on the Mines and Energy Committee of Parliament, John Jinapor, also said the GNPC is on the verge of collapse due to the decrease in its profitability.

He noted that the gross profit margin had reduced from “50 percent in 2018, to 26 percent in 2019 to 0.3 percent in 2020.”

The Committee on Employment, Social Welfare and State Enterprises in its annual financial performance report on GNPC revealed that the firm’s gross profit margin reduced from 50 percent in 2018 to less than one percent in 2020.

The report also noted that the firm increasingly depends on gas sales to fund its operations due to the decline in the sales from crude oil.

Source: CNR