Two prominent civil society organizations, the Centre for Social and Economic Mobility (CEMSE) and the Research and Advocacy Movement for the Informal Economy (RMA), have raised serious concerns about the National Petroleum Authority’s (NPA) management of critical funds.
The groups are calling for the decoupling of the NPA’s regulatory role from its fund management responsibilities, citing lack of transparency and accountability.
According to the groups, the NPA’s dual mandate has led to inefficiencies and mismanagement of national resources.
They claim that the authority has failed to demonstrate transparency and accountability in managing funds such as the Unified Petroleum Price Fund (UPPF), Primary Distribution Margin (PDM), and Cylinder Recirculation Margin (CRM).
The UPPF, which generates over GHC 4 billion annually, has been accused of underdeclaring surplus income. Despite collecting approximately GHC 2.4 billion in surplus funds annually, the NPA reported a surplus of only GH¢524,682,358 for the year, compared to a deficit of GH¢131,455,361 in 2022.
The PDM fund, which generates over GHC 1.3 billion annually, has also been criticized for lack of transparency. Approximately 70% of the fund constitutes surplus income, amounting to about GHC 900 million annually, but there is limited information on how these surpluses are utilized for national development.
The CRM fund has accrued over $30 million since its introduction, but less than 1% of LPG consumers purchase products through the CRM. Only $37,000 has been used, leaving a surplus of about $9.9 million unaccounted for.
The civil society groups are urging the Ministry of Finance to take immediate action to address these concerns. They recommend:
Comprehensive Audit: Conduct a comprehensive audit of the funds for the periods ended 2021 to 2024, focusing on the year 2022 when the fund reportedly recorded a loss.
Decoupling Roles: Amend the NPA’s mandate to decouple its regulatory role from fund management.
Transfer Fund Management: Transfer fund management responsibilities from the NPA to the Ministry of Finance.
“The secrecy with which the authority mismanages this account is appalling,” the groups said.
“The reason fund must be decoupled from the regulatory activities.”
The groups added that transparency and accountability in fund management are not just legal obligations but moral imperatives.
“Transparency and accountability in the management of these funds is not just a legal obligation but a moral imperative,” he stressed.
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