BOST made losses under Awuah Darko; Management insists

The Bulk Oil Storage and Transportation Company Limited (BOST) has dismissed claims by Kwame Awuah Darko, former Managing Director under the erstwhile National Democratic Congress administration, that the company was profitable during his tenure.

According to the current Management, led by Edwin Provencal, the claims by the former MD are false and wondered why he chose to spew lies in the public space when evidence available contradicts them.

At a media interaction last Monday, November 9, Awuah Darko took on his predecessor, Edwin Provencal, for claiming that BOST accounts, covering 2014 and 2016, were not audited.

He also disputed the fact that the company is making profit under his, current MD’s tenure.

“I am sure they are making all these claims because of the current state of corruption at BOST and TOR. PricewaterCoopers, an audit firm contracted by the then government to audit BOST, presented a report that stated that we made profit.

“Looking at the report, one could clearly tell that all these claims are aimed at watering down the quality of progress TOR and BOST had made over the years, under my leadership. We made huge profit and that remains the fact.”

However, a statement signed by the Corporate Communications Manager of BOST, MarlickAdjei, in response to Awuah Darko’s claim, gave a detailed explanation of the mess Mr Darko created before leaving BOST.

Although the statement acknowledged the fact that BOST made some profits, but that was in 2012, when Dr Yaw Akoto was the MD.

According to the statement, BOST made losses in three consistent years under the leadership of Kwame Awuah Darko.

The statement noted that a report prepared by PricewaterhouseCoopers in 2015 and 2016 showed that BOST made gains of GHc36,341,669 and  GHc458,638,724 in 2015 and 2016 respectively.

Meanwhile, the 2014 audit report, which was prepared by Tema-based Opoku, Andoh and Co., showed that BOST made a loss of GHS89, 365,054.

 

The statement revealed that a company called Conveniio Energy,  lifted products worth GHc2.3 million from BOST during his tenure and till date and the money has not been paid.

“Due to lack of proper structure and adherence to procedure in the sale of products on credit to dealers, a chunk of the receivables including that of the above company , have not been paid BOST yet. We have proceeded to engage private debt collection firms in this enterprise and we are hopeful of retrieving all those monies owed BOST”, the statement said.

On his concurrent leadership at BOST and TOR, the statement said the two companies had separate board of directors and Mr Darko had no deputies in this enterprise and, therefore, ran a one man show.

“In the final analysis, BOST, under his watch, was made to pay US$5.50 per barrel in tolling fees to TOR while the same TOR is today charging a tolling fee of US$2 per barrel in refining products for private businesses.

“Despite the high charges, Mr Awuah Darko ensured that TOR over-paid US$5.2 million as captured in the BOST and TOR debt validation carried out by Deloitte in November 2018.

“A total of US$10 million, which Sahara Oil should have paid to BOST in respect of products sold to the NNPC of Nigeria, was also retained by Sahara in settlement of TOR debts because the two companies were mistakenly bundled together and handed to one man to be sent to the slaughter house.

“We maintain that his stewardship left BOST with a total debt of US$624 million to suppliers and related parties and a total debt of GHS273 million, which was owed to banks in the country including GCB, Standard Chartered and Universal Merchant Bank,” the statement concluded.

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