Former Managing Director of the Bulk Oil Storage and Transportation Company (BOST), Dr. Edwin Provencal, has rejected claims of systemic fraud and fiscal leakages in Ghana’s Gold-for-Oil (G4O) initiative, insisting the programme was conducted with the highest standards of transparency and corporate governance.
Responding to a forensic risk assessment by policy think tank IMANI Africa, which alleged that the initiative was riddled with governance failures and staggering fiscal losses, Dr. Provencal said the audit reports of both BOST and the Bank of Ghana provide a clear record of accountability.
“The Gold-for-Oil initiative was run very transparently and according to corporate governance practices, and this can be found out from the findings of the audit reports of BOST and the Bank of Ghana,” he stated in an interview on Joy FM‘s Midday news on Monday, September 29..
IMANI’s report, backed by a coalition of oversight institutions, has called for urgent prosecutions and recovery of what it describes as stolen revenues.
It is alleged that the programme suffered from weak pricing controls, preferential access, and structural loopholes, while on the gold side, investigators pointed to the absence of contracts between the Bank of Ghana and the Precious Minerals Marketing Company, a gap said to have encouraged smuggling.
But Dr. Provencal dismissed suggestions of tax exemptions and revenue loss, insisting that margins on oil imports are determined by the National Petroleum Authority (NPA), not waived.
“I heard you talk about tax exemption on oil. There’s no tax exemption on oil. The taxes and margins are put on by NPA before it goes to the consumer. So I wonder where tax exemptions on oil came from—it really boggles my mind,” he stated.
On claims of a GH¢7.2 billion leakage, the former BOST MD pointed to the company’s own audited accounts.
“BOST made a profit of 400 million Ghana cedis as stated in our audited account. The Bank of Ghana also reported some forex and other losses in its audited financial report. These are the facts,” he explained.
Dr. Provencal further highlighted the multiple governance safeguards built into the G4O programme, noting that the Bank of Ghana itself appointed the Consolidated Bank Ghana (CBG) as the collection bank and another entity as the collateral manager.
“No product could have been lifted without the explicit approval of these two entities supervised by the Bank of Ghana,” he added.
When asked about IMANI’s recommendation that he should face prosecution, Dr. Provencal maintained that he had no objections to lawful processes but remained confident in the programme’s integrity.
“If there are untoward findings, the law should proceed. But I believe the programme, from the Ministry of Energy through to BOST as an agent for the Bank of Ghana, was very transparent,” he said.
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