Accra, Wednesday 19th February, 2020. Reference is made to a press release by the Chamber of Bulk Oil Distributors (CBOD) on the 10th February, 2020 announcing the final settlement in full of all legacy debts due the BDCs and Banks from the period July 2011 – June 2015 plus interest up until 31st March, 2018. This release seeks to outline the processes the Ministry undertook to pay the CBODs, and savings made afterwards.
In early February 2017, the Ministry of Finance (MoF) received a letter from the Chamber of Bulk Oil Distributors (CBOD) demanding for the payment of the following outstanding claims:
- An amount of $140,609,313 of Forex Loss Under-Recovery (FLUR) for the period 2011 - 2015 due which had been validated by Ernst & Young (EY) and was agreed and signed off by the previous Government but had not yet been paid;
- An additional Forex Loss Under-Recovery (FLUR) amount of $44,847,784 due for the period 2011 - 2013 , claimed but yet to be validated;
- A Real Value Factor (RVF) amount of GH¢541,058,361 - also yet to be validated; and
- A Forex Loss Under-Recovery Interest (FLURI) amount of $108,563,490 - also yet to be validated.
Forex Loss Under-Recovery (FLUR): This is defined as the loss incurred by the BDCs as a result of the differentials between the GH¢/USD$ foreign exchange rates determined by the National Petroleum Authority (NPA) for the pump prices and the rates at which the forex rates were supplied by the Bank of Ghana on behalf of the Government of Ghana (GoG).
Forex Loss Under-Recovery Interest (FLURI):This is defined as the interest accrued on the delayed payments of forex loss under-recoveries.
Real Value Factor (RVF): This is defined as the interest accrued on the delayed payments of price under-recoveries.