The Public Curiosity Accountability Fee (PIAC) has accused Ghana’s finance minister and parliament of violating the legislation by maintaining the Ghana Stabilization Fund cap at $100 million for the interval 2021-2025 as an alternative of the legally mandated $584.22 million.
Throughout a media briefing on PIAC’s 2025 Annual Report final weekend, PIAC Technical Subcommittee Chairman Samuel Beko mentioned that the Oil Income Administration Act requires that the fund’s cap be calculated based mostly on common anticipated oil revenues over a three-year interval.
He mentioned the forecast oil income for 2024, 2025 and 2026 is about $1.75 billion, with a median of $584.22 million in 2025.
Mr. Becaud claimed that each the Treasury Division and Congress acted illegally by setting and approving a cap that was far beneath the quantity required by legislation.
He due to this fact referred to as on the finance minister to use the right numbers any longer and referred to as on parliament to strictly adhere to the legislation within the funds approval course of.
PIAC additionally really useful that the federal government enact laws to manage the switch of funds allotted for the “Large Push” program from the Annual Finances Funding Quantity (ABFA) to the Ghana Infrastructure Funding Fund (GIIF).
Mr Bekoe cited GIIF’s funding in Accra Worldwide Airport as proof of the Fund’s effectiveness. He mentioned the fund will make investments $30 million from 2017 to 2025 and generate $17.9 million in curiosity and charges, practically 60% of its preliminary funding.
He mentioned PIAC is recommending that GIIF be introduced again beneath the Petroleum Income Administration Act in order that it could actually obtain allocations from ABFA for commercially viable tasks.
Relating to the amendments to the Petroleum Income Administration Act, Mr. Becaud identified that a number of modifications have been made to the Act because it was launched in 2011. He revealed that the great overview course of began in 2018 and 2019 stalled between 2020 and 2024.
He additionally revealed that Congress handed two amendments to the legislation in 2025 alone.
He mentioned the March modification restricted using ABFA to infrastructure tasks beneath the Large Push program. It additionally eliminated PIAC’s assure funding from ABFA and decreased its allocation to the Ghana Nationwide Petroleum Company from 30% to fifteen%.
Bekoe added that the second modification handed in December expanded the vary of funding choices obtainable to the Ghana Petroleum Fund.
The Finance Minister mentioned he defined that the amendments would enable using funds from the Ghana Heritage Fund for Ghana’s power sector tasks and the federal government’s proposed 24-hour financial system program.
Bekoe famous that 2026 marks 15 years for the reason that enactment of the Oil Income Administration Act, the purpose at which Parliament might first overview the restrictions governing withdrawals from the Ghana Heritage Fund, and warned of potential authorized and coverage challenges forward.
Below the present framework, solely a portion of the curiosity accrued within the fund could be withdrawn, whereas the principal stays protected. Nonetheless, Becaud famous that the legislation doesn’t clearly outline the quantity that may be withdrawn, creating uncertainty.
PIAC due to this fact requires a complete overview of the Petroleum Income Administration Act, quite than gradual amendments to the Petroleum Income Administration Act.
Mr Beko mentioned the revised legislation ought to set up clear standards for undertaking choice, strengthen the expenditure monitoring system and supply for impartial efficiency analysis.
He additionally referred to as on the federal government to publish full particulars of oil-funded tasks, adjust to the authorized requirement to allocate 5% of oil revenues to native council widespread funds, reinstate the stalled 2019 overview course of and develop a long-term nationwide improvement plan backed by parliamentary approval.
