Adnan Adams Mohammed
The workers of the Tema Oil Refinery (TOR) are expressing mixed feelings over the intending arrangement by government to handover management of TOR to Torentco Asset Management.
After the news broke out, Senior Staff Union of TOR says the approval of the decision made by the Board would revitalise the refinery, contribute to fuel security in the country, and stabilise the Ghana cedi.
Although other section of workers of TOR are apprehensive of the deal which is yet to be signed, a statement issued last week by the senior staff union indicated that the strategic partnership will help to revamp the Refinery and bring it back into operation. But, members of the General Transport and Petrol Chemical Workers Union of the Trade Union Congress (TUC) have alarmed that the lease agreement resembles the controversial Power Distribution Services (PDS) deal involving the Electricity Company of Ghana (ECG), where funds were unaccounted for. The workers believe that TORENTCO lacks the capacity to effectively manage TOR.
“TORENTCO, as a strategic partner, does not offer any guarantee of better management for TOR”, Bernard Owusu, the General Secretary of the General Transport and Petrol Chemical Workers Union of the Trade Union Congress (TUC) emphasized in an interview with Accra based radio station, Accra Fm.
He argued that the company has no track record in the refinery sector, raising doubts about its ability to revive and operate the refinery successfully.
Meanwhile, the Senior Staff Union think otherwise as they are confident the deal will produce positive impact.
“We are confident that this initiative will also ensure job security, improved conditions of service, and bring hope to the struggling workers, many of whom are considering leaving their positions.”
The union said it considers the yet-to-be-finalised arrangements with the selected partner, TORENTCO, as the only viable option to revive the refinery, given successive governments’ hesitance to invest capital in its operations.
They find it particularly encouraging that, in addition to the rent payments, the partner will also make a capital expenditure investment of USD 22 million in the refinery’s plants and associated facilities.
“As far as we are concerned, there is currently no other concrete alternative better than the one being considered now. Therefore, we pledge our support to the board, management, and the government as they work towards finalising this agreement.”
The private strategic asset management firm, Torentco Asset Management, is selected to partner existing management of TOR.
Under the agreement, Torentco Asset Management Group will lease the refinery for a period of 6 years, for a fee of $22 million. The refinery is expected to refine up to 8 million barrels annually. Additionally, the group will pay an annual rent of $1 million, along with an additional monthly rent amount of $1.067 million.
In release by the African Centre for Energy Policy (ACEP) revealed that the TAM is owned by an individual and not a consortium.
“We all want TOR to work, but, will not sit and watch Management do something that will not benefit the country, because this Torentco Assets Management is one person’s company who does not have any expertise in oil”, Executive Director of ACEP, Benjamin Boakye, in an interview on Adom FM, last week posited.
“For now, we know who is behind the Torentco company and when you check his background, he has not sold kerosene before; let alone, refining oil that he can use to help turn things around at TOR,’’ he said lat week.
Touching on the deal, Mr Boakye said the yet-to-be-finalised contract between TOR’s management and Torentco Assets Management did not go through the right process – be it competitive bidding or sole sourcing.
Subsequently, a Member of Parliament’s Select Committee of Energy, Rashid Pelpuo, said the Committee has not been briefed on the development.
On the back of that, the Committee will invite the CEO and directors of the company to brief them.
The discussions regarding the private investor for TOR has initially involved a company called Decimal Capital Limited, owned by former Managing Director of TOR, Mr Asante Berko.
However, Mr Berko resigned on April 15, 2020, due to allegations of bribery by the US Securities and Exchange Commission. This led to a breakdown in talks with his company.
Later, Mr Berko transferred his interest to another company named Biege Bridge, which eventually became TORENTCO.
The frequent transformation of the company throughout the deal raised suspicions among the workers.
Apparently, Bernard Owusu, General Secretary of the workers union, clarified that the workers at TOR are not against the deal itself but rather the manner and model of the agreement.
He pointed out that no proper due diligence was conducted before entering into the leasehold arrangement, and the company’s claim to revive TOR lacks any concrete guarantees.
The workers at TOR are calling on the government to reconsider the lease agreement with TORENTCO and ensure that the best interests of the refinery and its employees are protected.
