TOR Stabs GCB

The Tema Oil Refinery (TOR) is on a collision course with Ghana Commercial Bank (GCB) following its decision to divert its account to another bank, after accumulating a debt of over GH¢900 million (¢9 trillion) from crude oil imports. GCB is said to be undergoing serious financial challenges resulting from financing TOR operations, and management of the bank is not amused by the refinery’s decision to divert its money to a rival bank.

However, acting Managing Director of TOR, Dr Kwame Ampofo, said the company had every right to put its money in any bank that it so desired. According to Dr Ampofo, who was not in the mood to entertain media queries on ditching GCB, the decision was taken for the sake of flexibility.

Daily Guide Newspaper learnt that TOR which is indebted to GCB to the tune over GH¢600 million (¢6 trillion) in addition to over GH¢300 million (¢3 trillion) owed by Oil Marketing Companies (OMCs), has opened an account with Ecobank, instructing the oil marketers to lodge oil cash in it. This has drawn the ire of Ghana’s oldest bank, which is dilating on ways of recouping its money from TOR.

Commercial Bank sources told Daily Guide that the bank was not pleased with the new twist in oil financing which they described as robbing Peter to pay Paul.

“When any borrower contravenes the terms of credit agreements entered into with a leader, the lender has the right to take necessary actions to protest its interests,” a source said. GCB is not lying low on TOR’s decision to stab it in the back after exposing the bank to financial challenges. The bank is expected to hold a meeting with the refinery anytime soon on the way forward.

“We are not worried about doing business with another bank, but pay us our money first,” an official of the bank said. TOR has been enjoying a long-standing relationship with Commercial Bank which has been pumping trillions o cedis into the latter’s operations, with little returns.

Source: Daily Guide