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Defense Ministry Hit By GH₵12.9m Debt Crisis
 
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29-Mar-2016  
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The activities of Ghana’s Ministry of Defense, particularly, the Airforce and Navy, risks being grounded if it does not settle its growing debt to two leading oil firms in the country, a 2014 report of the Auditor-General has warned.

The two wings of the Ghana Armed Forces (GAF), according to the report are indebted to Goil Ghana Limited and Total Ghana Limited to the tune of GH₵12,503,355.20 and US$123,911.40 respectively.

The combined debt stock of the two units stands at GH₵12,980,414.10 (the debt quoted in US Dollars was converted into Cedis using a forex rate of $1.00 to GH₵3.85).

While the Navy was hit with a debt stock of GH₵6,130,494.12 being fuel supplied to it, the Airforce, according to the report, owed the oil firms GH₵6,372,861.08 being aviation kerosene supplied to it during the year under review.

That notwithstanding, the Navy was captured by the report owing the oil firms additional US$123,911.40 (equivalent to GH₵477,058.89) but the details was immediately not known.

An amount of GH₵6,372,861.08 from the Cedi component of the debt stock, Kasapafmonline.com learnt has been paid leaving a balance of GH₵6,130,494.12 but the details were not provided in the report.

The debt stock, the report concluded, was as a result of delays in the release of funds to the Ministry of Defense by the Finance Ministry, cautioning that such condition could affect the credit worthiness of the Ghana Armed Forces and the Navy.

It further warned that the situation could lead to derailment of their programmed operations for the year.
 
 
 
Source: kasapafmonline
 
 

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