After the OSP directive, the TOR board takes a stand on transparency.

The Tema Oil Refinery (TOR) Board of Directors has stated its commitment to transparency and accountability in its decision-making process in order to help restore the state’s refinery back into full operation. OSP

The board members also emphasized their willingness to engage with alternative prospective investors to help revitalize the company in a six-page statement to the media.

This comes after the Office of the Special Prosecutor (OSP) ordered TOR’s management to halt its proposed cooperation with Tema Energy and Processing Limited (TEPL).

In a letter dated November 21, 2023, and issued to TOR’s Managing Director, Daniel Osei Appiah, the OSP stated, “It has commenced an analysis of the risk of corruption in respect of the proposed partnership.”

“You are directed to immediately suspend the proposed partnership agreement, ongoing negotiations, operations, and all other ancillary activities arising out of and consequent upon the proposed partnership agreement until you are otherwise advised by the Special Prosecutor.” OSP

The Special Prosecutor’s directive comes in response to TOR workers’ protests against the partnership agreement with Torentco Asset Management Limited, now Tema Energy and Processing Limited.

The General Transport, Petroleum, and Chemical Workers Union of the Trades Union Congress (TUC) Ghana petitioned the Special Prosecutor on Monday, November 20, to look into the leasing deal between the Tema Oil Refinery and Torentco Asset Management Limited.

High expectations

In response to the Office of the Special Prosecutor’s directive, the board stated its commitment to maintaining high standards of integrity, ethics, and governance, as well as its willingness to collaborate with the Office of the Special Prosecutor and the Attorney General to ensure a better understanding of the proposed transaction.

They feel the project has the potential to benefit TOR and its employees, and they are committed to creating a thriving work environment and boosting employee morale.

The board of directors stated that it had acquired the right to terminate the proposed lease agreement with TEPL if necessary and was open to talking with alternative possible investors.

It stated that many conditions antecedent, including upfront payment by TEPL, approval of the NPA Refiner Licence, transaction approval by TOR stakeholders, and completion of the final due diligence report, had to be met before the lease agreement could be finalized.

Disappointment

The board was particularly dissatisfied with the activities of GTPCWU leaders, who it claimed made unsubstantiated claims without engaging with management or the board to ascertain the truth.

It went on to say that the board and management would launch an internal investigation to better understand and address this behavior.

Details

It was explained to the board that the TOR Rehabilitation Project was tasked with providing a credible solution to return TOR to continuous and profitable refining activities.

“The refinery has not processed a barrel of oil since April 2021 and has been reliant on government funding to cover cash flow shortfalls.

The proposed rehabilitation project aimed to restore the infrastructure at the refinery and ensure sustainable profitability,” it stated.

It added that the board, which comprised reputable and experienced individuals, has held over 40 board meetings since its inauguration in March 2022 with the determination to find a robust and sustainable solution for TOR.

“The financial health of TOR has been challenged for years, leading to stagnant salaries for employees and the exit of key engineering skills.

“The board and management are committed to overcoming these obstacles and putting TOR on a path to long-term recovery,” the statement said.

It was stated that due to the company’s financial situation, the management of TOR solicited numerous prospective investors to engage in a competitive tender for the rehabilitation project.

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