October 29, 2013

MP for Obuasi West is joepardising the takeover of some foreign oil companies in Ghana after suing them for failing to complying with the country’s laws that prescribe 50% ownership for Ghanaians.

Kwaku Kwarteng filed a writ at an Accra high court against Shell, Total and Oando and other petroleum companies.There is a takeover bid of Shell Ghana by Vivo Energy.

The National Petroleum Authority (NPA) is also cited in the suit for allowing the foreign companies to begin a takeover of these companies without ceding 50 percent of its stake to Ghanaians as required by law.

Speaking to Joy News he said ” we are asking the court to compel these companies to comply with the regime governing doing business in the petroleum downstream sector”

The New Patriotic Party man argues that “in some countries you are unable to do business in the petroleum downstream sector if you are not 100% domestic”.

According to the MP, Ghana however, makes provision for a 50% Ghanaian stake in foreign oil marketing companies.

To this end, Kwaku Kwarteng says it is “just unacceptable..to think these companies are flouting this [requirement] and the regulator is looking on unconcerned”

Mr. Kwarteng tells Joynews, the outcome of the case will have a revolutionary effect on the petroleum retail sector of Ghana.

This will be the second time, the Member of Parliament and Executive Director of Development Data, a policy search organisation is suing National Petroleum Authority (NPA).

Last year, he sued the petroleum sector regulator over illegal fees hidden in the price build-up of fuel.

He won judgment after the court ordered to the NPA to abolish the illegal ex-refinery differentials.