Energy Policy Analyst Benjamin Nsiah shared his insights on the ongoing challenges faced by the Tema Oil Refinery (TOR) and proposed a pragmatic solution for its revival.
In an exclusive interview on Happy 98.9 FM’s “Epa Hoa Daben” socio-political talk show with host BB Brown, Nsiah acknowledged the challenges TOR has faced over the past five years as he emphasized the high turnover of managing directors and the resultant operational stagnation.
He bluntly stated, “For the past five years, TOR has literally not been working, and since the second term of President Akufo-Addo, he has changed the managing directors more than occasions.”
Attributing the inefficiencies to successive leadership failures, Nsiah asserted that the losses incurred by TOR have been detrimental to the country. He added, “The reason is that they all failed to put TOR back on track and effectively functional. The inefficiency of TOR has only brought loss to the country.”
Addressing the ongoing controversy surrounding the lease negotiation between TOR and Torentco Asset Management Limited (TAML), Nsiah cautioned against insinuations of corruption and stressed the need for a comprehensive approach to revive the refinery.
He suggested considering partial privatization as a viable option and argued that involving private investors could inject much-needed capital into TOR, allowing the company to recoup investments and incentivizing accountability and efficiency.
Nsiah stressed the importance of maintaining a balance, ensuring that TOR does not become solely a private entity, given its significance as a national security asset and a crucial component of the country’s energy architecture.
In his proposed solution, Nsiah suggested considering partial privatization of TOR as a strategic move. He argued, “So as a Center of government can’t manage TOR, they can consider the partial privatization which could at least help the company recoup some monies invested, and people will also invest.”
Nsiah highlighted the potential benefits of partial privatization, emphasizing improved corporate governance, accountability, and efficiency. He remarked, “It will also bring good corporate governance since they’ll be watching out for profits. There’ll be accountability, discipline, responsibility, and that accountability at TOR.”
However, Nsiah was quick to qualify his suggestion, stating, “We don’t want it to be solely a private-owned entity because TOR is a national security asset and an essential part of our energy architecture.”
As the backdrop to this discussion, the internal strife within TOR has escalated, with workers expressing dissatisfaction and planning actions, including picketing at the Jubilee House. Bernard Owusu, National Chairman of the General Transport, Petroleum, Chemical Workers Union (GTPCWU), announced these plans during a recent press conference.
Nsiah’s proposal comes in the midst of these conflicts and the urgent need for TOR’s revival. He concluded with a pragmatic approach to addressing TOR’s financial challenges, stating, “TOR is in debt, and there are some liabilities of the companies and because of that, they can’t import and refine. So our suggestion has always been that we need someone ready to buy some of these liabilities and for us to make payment schedules so that those liabilities can become equities.”
