MILLS PANICS OVER TOR DEBT …As Nigeria, others refuse to grant credit to Ghana

President John Evans Atta Mills

Ghanaian President John Evans Atta Mills is under pressure. He is virtually at his wits

The TOR is in excess debts of some 600 million GH Cedis. That is not definite though as many stakeholders continue to offer conflicting figures.

The TOR situation has become murkier than anticipated because the Mills administration either tried like previous administrations to play politics with the issue or simply told lies about the true state of TOR and how it is not producing up to capacity level.

Now we know the truth.  TOR has no crude and cannot produce up to its capacity. Petroleum producing giants like Nigeria, Libya and Venezuela are dragging their feet about delivering crude oil on credit to Ghana despite the virtual bent-knee bid of the President himself and his Vice John Dramani Mahama to these countries.

The biggest blow is that the banks – Ghana Commercial Bank in particular – are suffering and are reluctant to finance the purchase of crude oil for fear of going bankrupt.

The previous administration faced similar situation when it assumed power, but managed to get over the problem. So how did Kufuor do that? The former President showed what leadership was about: Fix it, if there is problem. The Ghanaian voter some of who are users of pre-mix fuel are not concerned about who caused the TOR mess. The major concern is how to get pre-mix fuel to facilitate fishing activities.

The setting up a commission of enquiry in to the TOR debts would only be good if such findings can help arrest the rot at TOR and other state institutions. History has shown that many of such commissions of enquiry are done to sway minds of people from failures of governments.

The admission this week by the Administration headed by President J. E. Atta Mills that it is having problems financing the operations of the Tema Oil Refinery is not only disturbing, but shows how the President has played politics rather than finding practical solution to the TOR problem.

Since it took over the affairs of the country, the Mills Administration has sought to give the impression to Ghanaians that it is in control of the energy situation.  First, it gave a superficial tax break to consumers when it removed some minor taxes on petroleum products.

Obviously, this was done so it could claim that it had fulfilled a campaign promise to reduce taxes and hence fuel prices.  Unfortunately, this act was exposed for what it was when the same Mills Administration soon had to authorize significant increases in fuel prices.  It did not stop there.

It did not take long for shortages to be experienced in the pre-mix fuel markets throughout the country.  The fishing community cried long and hard for recognition.  They protested and sometimes they were warned by members of the Administration not to let politics enter their communities.

The Administration formed a National Pre-mix Committee and went about setting up new Local Pre-mix Committees.  Anyone who complained ran the risk of being labeled, “against”.  The penalty would include restricted access to the essential fuel, which by the way is not free but is bought with the hard earned money of the fishing community.

Quite often, in these days of high inflation and high cost of borrowing, pre-mix is bought with loans that attract very high interest rates.

Then we entered the critical annual fishing season when the sea is kind and the catch is plentiful.  This time the fishermen got angrier, and gained a national audience when they could not go fishing.  They threatened the Mills administration that they will get even come 2012.  They were seeing their very existence being pulled from under them.  Then came the denials.

The Chairman of the National Pre-mix Committee replied that there was no shortage of the fuel.  The Public Affairs Officer of the Tema Oil Refinery also tried to convince the fishermen that there was no shortage of pre-mix.

Then came the ultimate: Blame the victims by pushing the problem on diversion of the product.  And then came blue pre-mix.

Now the Mills Administration has come clean.  We have had a shortage of crude oil all along.  The banking system is under threat of failure.  There is the need for something new, something different.  No patriot of the land will rejoice in the face of such difficulties.  So we are glad the truth is out.

We hope that the high-powered team led by the Chief of Staff and including the Governor of the Bank of Ghana, the Energy Ministry and the Minister of Finance will find a lasting solution soon to give meaningful respite to the banks and pave the way for uninterrupted supply of crude oil for the refinery.  Then and only then can motorists, industries and the fishing community get the relief they need.