Alleged leasing of TOR: Senior staff endorse US$ 22m deal

The Senior Staff Union of the Tema Oil Refinery (TOR) has affirmed speculations in some quarters about the likely leasing of the facility to a private investor.

Although the union endorsed what it described as a partnership, it dismissed “misinformation” in sections of mainstream and social media, arguing that those assertions were either borne out of ignorance of the real facts or of attempts to block the deal.

The union observed that the partnership with the investor, TORENTCO Asset Management (TAM), will be to the advantage of the refinery, which they indicate is presently saddled with enormous technical and financial challenges.

“It is important to draw the attention of the public and well-meaning Ghanaians to the fact that over the past decade, TOR has not fully operated in a sustainable way due to political interference, mismanagement, and a lack of requisite investments by successive governments”, the statement by the union on Tuesday read in part.

Welcoming the decision to privatize the facility, the workers claim the investment by TAM is the only way the TOR can be revived.

“It is on this basis that we, the Senior Staff Workers Union of TOR (PSMU of UNICOF), welcome the decision of the Board and Government to revamp the refinery and bring it back into operation to contribute to fuel security in the country and the stabilization of the Ghana Cedi. We are confident that this initiative will also guarantee job security and improved conditions of service. “

The union disclosed that TAM will be making a capital injection of some US$22 million, besides annual and monthly rental payments to TOR.

Additionally, the terms of the agreement, the workers say, give TOR the option of termination with a refund to TAM if a better deal is reached during the tenure of the existing agreement.

However, Senior Vice President of IMANI, Bright Simons, believes the transaction is a rip-off.

Earlier this week, Mr. Simons alleged that the government, in collaboration with some unknown actors, is on the brink of secretly leasing away the facility, which deal will see TAM make a gross earnings of US$ 700 million in 6 years from their initial US$ 22 million investment.