Leaders across the political divide in Parliament have urged the government to freeze the issuance of new licences for oil production until an appropriate regulatory framework has been determined by Parliament.
About 41 companies are said to have applied to the Ghana National Petroleum Corporation (GNPC) for rights to participate in the country�s crude oil trade from next year.
The political parties, represented by Mr S. P. Adamu of the National Democratic Congress (NDC), Mr. O.B. Amoah of the New Patriotic Party (NPP), Alhaji Ahmed Ramadan of the People�s National Convention (PNC), Mr Ladi Nylander of the Convention People�s Party (CPP), and the Parliamentary Subcommittee on Mines and Energy, represented by Mr Ernest Yakah, based their call on the grounds that the country was ill-prepared to derive maximum benefit from the oil find.
They argued that less than one year before the drilling of the country�s oil in commercial quantities, there was not a single law before Parliament on how the country would manage the oil fields and the expected revenue as well as how to ensure that the environment was not damaged by the companies. These serious issues on the country�s preparedness for the oil boom are contained in a communiqu� signed by Members of the Parliament Affairs (IEA) on the theme: �Politics of Oil�, for political party leaders and parliamentarians.
Their view is corroborated by a member of the World Bank Extractive Industries Advisory Committee and Co-ordinator of ISODEC, Dr Steve Manteaw. According to the communiqu�, oversight institutions such as Parliament, the commission on Human Rights and Administrative Justice (CHRAJ), the Serious Fraud Office (SFO), the Ghana Armed Forces and the Police were all not in the position currently to play their effective roles during the oil boom.
It also cautioned against over reliance on the find. �To avoid the resource curse and minimize the �Dutch Disease� effect, the government must diversify the country by investing in agriculture, agro-processing and manufacturing,� it pointed out, and urged the government to continue to rely on tax revenue for development financing in order to maintain the social contract that existed between the state and its citizens and in that respect the capacity of the tax revenue agencies needed to be strengthened.
It also suggested that the government should pursue a sustainable income strategy in which 80 per cent of the revenue from the oil would be used annually to address the physical and social infrastructure needs of the country, with 10 per cent saved in a fund for future generations and 10 per cent put in a budget stabilization fund. The communiqu� suggested that the bulk of the amount to be save for future purposes must be kept overseas to insulated the domestic economy against adverse macroeconomic effects.
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