An Auditor-General has warned that Ghana’s Ministry of Defense, particularly, its Airforce and Navy wings will have their activities stuck if it does not settle its growing debt of GH₵12,980,414.10 to two leading oil firms in the country.
The 2014 Auditor General’s Report mentioned that the two wings of the Ghana Armed Forces (GAF) are in serious debt to Goil Ghana Limited and Total Ghana Limited to the tune of GH₵12,503,355.20 and US$123,911.40 accordingly.
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).
The Navy was also hit with a debt stock of GH₵6,130,494.12 being fuel supplied to it.
The report averred that the Airforce owed the oil firms GH₵6,372,861.08 being aviation kerosene supplied to it during the year under review.
The report also mentioned that the Navy was owing the oil firms additional US$123,911.40 (GH₵477,058.89).
Meanwhile, an amount of GH₵6,372,861.08 has been paid from the Cedi component of the debt stock whilst a balance of GH₵6,130,494.12 is still left to be paid, News Ghana has established.
Though details of this payment was not provided in the report, the debt stock, was as a result of delays in the release of funds to the Ministry of Defense by the Finance Ministry.
The Auditor General’s Report however warned that the development could cause the grounding of programmed operations of the Ghana Armed Forces
Source: Newsghana.com.gh
