Intelligence picked up by The Chronicle indicates that Tema Oil Refinery (TOR) is in financial distress and can collapse any moment from now.
The refinery reportedly owes huge sums of money to Social Security and National Insurance Trust (SSNIT) and the two utility companies- Ghana Water Company (GWC) and Electricity Company of Ghana (ECG).
The Chronicle gathered that just last week, the Ghana Water Company Limited (GWCL) quietly disconnected its services to the Refinery over about GH?4 million water bill that had been outstanding.
The situation compelled the Refinery to temporarily depend on its 11,200 cubic meter water reservoir which lasted for some 72 hours. Toilets could not be flushed after the water in the reservoir was fully used.
Dry water taps at the highly flammable company put the refinery at high risk, especially because water, which is an essential need of the refinery, is used to generate steam for the refinery and also for emergency fire fighting purposes.
As if that is not enough, TOR, as at March this year, owed the Electricity Company of Ghana (ECG)about GH?2.3 million.
Besides, it owes its workers GH?34 million in Provident fund, so workers who want to access their investment cannot do so, since the coffers are empty.
The Refinery wasagain in arrears of about GH?21 million in the payment of workers’ SSNIT Tier One and Two as at April 2021.
It, moreover, owes the Ghana Revenue Authority to the tune of about GH?85 million in taxes as at April this year.
The huge indebtedness of TOR has put the workers on edge, fearing that the company might be shut down if no immediate financial cushion was given to keep it alive.
The current state of TOR, some workers at the Refinery say should be blamed for the current Management which they said is failing to see reason to make the plant viable, as all suggestions made to him to get the Refinery on track had proved futile.
“The Refinery is struggling to pay salaries of workers, who are due for pension but unable to access their end of year benefits, due to the lack of funds in the company’s coffers.
“This year alone, in a space of two months, the bank account of the company has been blocked on two occasions by the Ghana Revenue Authority. We are struggling to pay workers’ salary. We are unable to pay our bills and we do not know the future of this Refinery, yet our management continues to employ people,” some of the workers told The Chronicle on condition of anonymity.
A grade six worker, that is the lowest paid worker at the Tema Oil Refinery, takes home GH?2,879 as salary, GH?700 ass a mid-month salary allowance and GH?900 monthly fuel coupon.
As at mid-May this year, 15 new category six workers have been employed on political grounds, despite the numerous debts and financial challenges the refinery faces.
In a notice to its staff in October last year, the Human Resources and Administrative Manager announced the appointment of one Charles Anafi, a former Principal Engineer of the Refinery, as the Refinery’s Optimisation Manager, a newly created position.
The function of the newly created Optimisation Department, according to the Human Resources and Administrative Manager, Jane Ohenewaa Gyekye, in the notice to the staff, “is to commercially optimise the overall Refinery operations, study market trends and recommend useful technology/process to improve the Refinery’s viability and commercial position to achieve the company’s revenue target.”
Another new appointment was made on March 21, 2021 with one Frank Kwaku Duah appointed the Acting Inspection Manager of the plant.
However, the workers believe these appointments were needless, especially when the Refinery is financially bankrupt.
“Instead of helping revive the plant, our management is making matters worse for us with their actions and the earlier things are checked; the better for the company, because the Refinery is collapsing as our plants are all down.”
The Chronicle was told that currently, TOR has ceased refining as a tolling contract signed with Woodfields Energy Resources Limited has been terminated and the company does not know where to get the next crude to refine.
Early this year, the Divisional Workers’ Union within the Refinery petitioned President Akufo-Addo to remove its MD and dissolve the current board on the grounds of incompetence.
The petitioners said the current administration was unable to point to any future prospects, opportunities, initiatives, negotiated agreement that could assure the workers of a better future. Unfortunately, all efforts made by The Chronicle to speak to management before this publication proved futile.
This reporter was at the premises of the Refinery on Monday, this week and at the first gate, he was asked to produce his ID card, which he did. When the security men got to know that he was a journalist, they asked him the reason why he wanted to see management, which he explained to them.
After consulting each other, they denied him entry. The reporter went there the following day (Tuesday) and was again denied entry by the security men.
When The Chronicle called Stanley Martey, the PRO for Ghana Water Company on the matter, he said he was in the Ashanti Region on an assignment, thus, pleaded inability to speak on the matter.
The post TOR Is Collapsing Under Heavy Debts appeared first on The Chronicle Online.
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