US-based company dupes BOST $109 million

US-based company dupes BOST $109 million

A United States-based company has duped the Bulk Oil Storage and Transportation Company (BOST) of $109 million, Accra-based Class FM has reported.

US-based company dupes BOST $109 million

Kwame Awuah-Darko, Acting managing director of BOST

The crime, the report says, is contained in the 2012 auditor general’s report.

The company, known as the American Tanker and Vessel Company, was contracted by BOST in 2006 to construct two pipelines but has failed to fulfil its part of the contract despite several efforts to get it to do so, the report said.

The acting managing director of BOST, Kwame Awuah-Darko, told the Public Accounts Committee on Monday that the situation had compromised the financial standing of BOST, as it had now incurred losses.

"There is an acknowledgement of the non-performance under the contract. There is a last-ditch diplomatic effort that started at the end of last year, if that doesn’t yield any results then we have no choice than to go down the legal route.” 

“…This is something that is very painful. That single transaction has almost made BOST unprofitable… If you look at our account, our auditor will tell you last year alone we had to take over GHS180 million in unrealised forex losses because, obviously, it is a dollar-denominated facility and you have to make sure that you have made provision to cover that obligation and the infrastructure has not been delivered, so we are unable to utilise that infrastructure and pay back the loan. It is the single most difficult challenge that I faced when I went to BOST.” 

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Awuah-Darko said  a court action would be brought against the US company to compel it to fulfil its part of the bargain, according to the FM report.

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