BOST MD HOT …As Shake-Up Looms

Information available to the Daily Democrat suggests possible shake-up at State Owned Bulk Oil Storage and Transportation Company Limited (BOST) and casualties will reportedly include the Managing Director, Mr. George Mensah Okley, over the illegal payment Of GH¢14.4 million in judgment debt to Springfield.

A source revealed that government is embarrassed with this scandalous payment and the    tension it has created among workers of BOST and therefore strong consideration in corridors of power for his dismissal to restore sanity and create opportunity for a new board chairman after the resignation of Dr. Kwame Kyei Acheampong.

According to our intel, the Presidency is incensed by his disrespect and absolute disregard to advice by legal experts not to effect the payment.

The information stressed that the advice was based on facts but he ignored it even though the legal opinion was clear to appreciate in a letter to management dated 14th November, 2017:

“We have not revised our view that Springfield Energy is smartly trying to blow hot and cold at the same time. We therefore stand by our professional advice given earlier that BOST should not cave in to the blackmail of Springfield to hand them underserved millions of dollars from the public purse.”

“The modus operandi of Springfield is not new. It has been so since the inception of this case.

Let Springfield boldly go to the court, prove their case in accordance with the law and let the court deliver its judgment. BOST will then have the option of satisfying the judgment or if it is unhappy challenge the judgment higher up.”

“That way it would be seen that BOST stood its grounds and fought a good battle to protect the public purse. That way nobody can accuse all those involved in the case of creating, looting and sharing.”

“This is our position on the matter,” the lawyers advised in the letter.

It emerged that Springfield took BOST to court for the recovery of the principal amount of     USD 11, 104,143.29 at the interest of 19% from 13th November 2015 till the final payment.

The court granted this claims and when the company entering the judgment back- dated the duration for the interest to October 2013 so that BOST would pay more interest.

BOST external lawyers Nsiah Akuetteh & Co then came in to challenge the period for the calculation of the interest and the 19% interest rate for a dollar transaction.

The trial judge stayed his ruling party allowing BOST to pay the principal that was not in dispute and appealed against the 19% interest rate and the back- dated starting date for the accrual of interest. On the 20th December 2016,  BOST paid fully the principal amount of USD 11, 104,143.29 through a Five Year Term Loan from Fidelity Bank, Accra of which according to sources BOST is still servicing using all their revenues from Storage and Rack.

The Bost scandal has no other explanation or motivation then a clear  conspiracy to create, loot and share because  official determine to protect the public purse and ensure value for money  would endorse payment on the face of the available documents and the facts.

Questions are also raised about the role of the Governing Board of BOST to act professionally with integrity by reporting Springfield Energy to the security agencies such as BNI, EOCO or CID of Ghana Police Service.

SPRINGFIELD’S LIABILITY TO BOST

The worst case scenario for BOST, which is the best case scenario for Springfield Energy.

Assumption

  1. BOST accepts the date of injury (lost of product) as October, 2013. (Remember that the disputed date is October, 2015).
  2. BOST accepts the interest rate of 12% per annum. (Remember that the disputed interest rate at settlement stage was 12% or 8%).

–  The full payment was made on 20th December, 2016.

– Therefore the total period that the interest ran from October, 2013 to December, 2016 = 38 months.

– Principal amount equivalent to product lost was $11,104,143.29.

– Allowable product loss amounted to $300,000.00.

– Actual principal due Springfield Energy = ($11,104,143.29 – $300,000.00) = 10,804,143.29.

– Interest = Actual Principal x Rate x Time / 100

= 10,804,143.29 x12 x38/12 /100

= 10,804,143.29 x12 x38 / 100

= $4,105,574.45 due Springfield.

But BOST had paid $4,000,000.00 on 27th September, 2017.

Less $4,000,000.00

= $4,105,574.45 – $4,000,000.00

= $105,574.45

Less the $300,000.00 allowable loss due BOST

=$105,574.45 – $300,000.00

= -$194,425.55 or ($194,425.55).

Hence Springfield owes BOST =$194,425.55

Stay tuned

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s