PIAC needs secure funding to protect oil revenue - Adongo

Isaac Adongo, Chairman of Parliament’s Select Committee on Finance, has issued a stark warning that Ghana could undermine a crucial guardian of its petroleum revenues if steps are not taken to legally secure funding for the Public Interest and Accountability Committee (PIAC).

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Ghana risks weakening one of its key petroleum revenue watchdogs if steps are not taken to secure its funding by law.

Adongo highlighted PIAC's vital role in ensuring Ghana's oil revenues are accounted for and used appropriately. However, he noted that PIAC's funding has become a significant concern following reforms to petroleum revenue management, including the abolition of the Annual Budget Funding Amount (ABFA). Previously, PIAC's operations were financed by a percentage of the ABFA. With the ABFA now allocated to the "Big Push" program, PIAC has lost a primary source of its funding.

To ensure PIAC can operate effectively, Adongo stressed the need for a new funding arrangement anchored by legislation. He emphasized that the committee should not be reliant on the goodwill of any single Finance Minister. "There must be a legislative anchor," he stated, underlining the importance of a stable, legally mandated financial basis for PIAC.

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There must be a legislative anchor.

Furthermore, Adongo cautioned against the depletion of Ghana's oil savings intended for future generations. He observed that the country has spent a substantial portion of its petroleum revenue on immediate needs rather than building sovereign wealth, contrasting this with Norway's deliberate saving of oil wealth for the future. He urged parliament and the government to exercise caution when reviewing the Ghana Heritage Fund, warning of the temptation for politicians to use these funds for short-term gains. Any review, he advised, must protect the fund's purpose and ensure future generations benefit from the nation's oil resources.

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PIAC had played a critical role in ensuring that the country’s oil revenues were properly accounted for and used for their intended purposes.

Richard Ellimah, Chairman of PIAC, acknowledged the committee's 15-year journey since its 2011 establishment under the Petroleum Revenue Management Act. He explained that PIAC's mandate includes monitoring legal compliance, facilitating public debate, and independently assessing the management and use of petroleum revenues. Ellimah noted that PIAC's activities, such as producing statutory reports, inspecting projects, and organizing public forums, have strengthened transparency and accountability in Ghana's petroleum revenue management. The anniversary theme was 'Advancing Resource Governance through Transparency and Accountability for a Sustainable Economy.'

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He said PIAC’s funding challenge had become a concern following reforms to the management of petroleum revenues, including the abolition of the Annual Budget Funding Amount (ABFA).