Four public institutions appear before Public Accounts Committee
Four government institutions on Tuesday appeared before the Public Accounts Committee to answer questions on the Auditor General’s reports on their financial performance for the 2004 and 2005 financial years.
The institutions were, the Bulk Oil Storage and Transport Company, Electricity Company of Ghana, the Volta River Authority and the Public Utilities Regulatory Commission.
The Public Accounts Committee chaired by Mr Albert Kan Dapaah, Member of Parliament for Afigya Sekyere West, is a parliamentary committee that scrutinizes the financial performance of public enterprises, ensure their efficiency and make recommendations for peak performance.
Mr Kojo Arkorful, Deputy Chief Executive Officer of (BOST) told the Committee that the company’s turnover rose by 27.4 per cent from GH ¢271,939.4 million in 2003 to GH ¢346,640.1 million in 2004.
He said cost of sale for the same period recorded GH¢316,181.7 million resulting in the increase in profit.
With administrative expenses of GH¢39,122.9 million, the company according to him, closed with a net profit of GH¢286,125.1 million.
Mr Arkroful said currently BOST has storage facilities at Bolgatanga, Takoradi, Kumasi and in Accra with a total of 70 thousand cubic metres capacity.
He said BOST has seven depots across the country five of which were handed over to Tema Oil Refinery but added that efforts were being made to take them back.
Mr Stephen Adu, Chief Executive Officer of the Public Utility Regulatory Commission said his outfit recorded a 17.5 per cent decline in income against an increase in recurrent expenditure in 2005.
“Income declined by GH¢0.92 billion from GH¢8.00 billion in 2004 to GH¢7.08 billion in 2005,” he said.
Fixed assets, he said, decreased to 1.87 billion by December 2005 as a result of a depreciation of GH¢1.30 billion of fixed assets, which overshadowed an additional purchase of GH¢0.30 million.
Mr Adu noted that significant reduction of 0.61 billion in cash bank balances reduced the current assets of GH ¢0.53 billion in 2005 even though debtors increased by GH ¢2.0 million.
He said current liabilities, however, recorded an increase of ¢1.11 billion and therefore worsened the liquidity position.