Bulk Oil Storage and Transportation (BOST) Company Limited, a State-Owned Enterprise(SOE) , has been adjudged the beacon of corporate governance by Vice President Dr Mahamudu Bawumia for its operational excellence and strategic development right into a worthwhile firm.
BOST, in 2017 was saddled with liabilities of $624 million, Legacy loans of GHS284 million, Bulk Distribution Companies (BDCs) claims of $37 million, and GRA Tax Liability of GHS47 million, making the corporate unattractive for credit score strains to remain in enterprise.
The Vice President talking on the commissioning of the brand new Head Office of BOST, stated 30 per cent of the corporate’s tanks had been decommissioned with three out of the corporate’s 6 depots non-operational.
“Four river barges were out of commission, the entire network of pipelines of 361km across the country were out of service and 77km of 12-inch pipes procured under US Exim facility had been detained in Huston for over 10 years as a result of a contractual dispute.
“There was a picture of a company that was being run down. To complete this chaotic picture, the BOST account had been unaudited for 3 years, making it very difficult to determine the company’s financial position and no bank was going to extend a credit loan to a company which had no audited account”, he narrated.
Dr Bawumia applauded the Board below the chairmanship of Mr Ekow Hackman for the approval of a 5-year turnaround technique from 2020 to 2024 ready by the administration of BOST led by the Managing Director, Mr Edwin Provencal to save lots of the corporate from insolvency.
He added that “the strategy between the board and management which focused on enhancing operational excellence and aggressively growing the business sought to make BOST profitable, ensure the development and effective implementation of policies fully utilised all BOST assets and automate the company’s processes and most importantly be the beacon of corporate governance in the country.”
He said the implementation of the BOST strategy made it possible for the company to repair 13 out of the 15 defective tanks, all four river barges which were out of commission, all pipelines which were out of service had been repaired and the obsolete pump meters and loading machines replaced at BOST depots.
“The result has been an increase in the utilisation of BOST revenue-generated assets from 34 per cent in 2019 to its current level of 97 per cent. That is remarkable. The increase in BOST margin from 3 pesewas to 6 pesewas per litre in 2019 and subsequently to 9 pesewas per litre in 2020 has contributed significantly to the execution of these projects, ” he counseled.
Commenting on the operational effectivity of BOST, Vice President Dr Bawumia famous that the corporate had paid $611 million with its internally generated funds, comprising about $423 million from a debt place of $624 million owed to suppliers and associated events.
“I was elated when I heard that an internal committee of BOST vetted the claims of eight BDCs for products stored with BOST, a loss from 2009 to 2014, amounting to $37 million and after the vetting, the internal committee succeeded in reducing this figure to $11 million, resulting in a saving of $26 million…This is worthy of emulation and worthy of congratulations, ”he said.
He once more said that BOST, for the primary time in 11 years made a revenue of round GHS164 million, congratulating the board, administration and employees for guaranteeing stewardship and prudent administration of sources on behalf of the federal government and folks of Ghana.
He, due to this fact, implored different State-Owned Enterprises to emulate BOST’s blueprint to allow them to contribute to the execution of authorities insurance policies.
“Imagine if 100 State-Owned Enterprises had made a profit of GHS164 million, that will be some GHS16 billion for the nation. This only goes to show that with good leadership and a vision, state enterprises can be profitable. It only takes a few good men and women for that turnaround to happen and that is exactly what is happening at BOST, ”he stated.
Dr Mahamudu Bawumia nonetheless, commissioned the $39 million new Head Office of BOST to mark the corporate’s 30 years historic milestone to seek out its everlasting location.
“Today marks a significant milestone in the 30 years history of BOST, having transitioned from Diamond House through Heritage Towers to Roman Ridge, Airport Residential and Dzorwulu; finally, the company has found its permanent location, ”he stated.
The constructing was conceived round 2015 as half of plans to make sure that BOST employees work in a conducive atmosphere.
On fifteenth June 2015, BOST engaged a building firm to design, construct and finance the development of a brand new Head Office constructing, 7-storey twin blocks at a complete price of $39 million, unique of VAT and all taxes.
The constructing was to be accomplished in 24 months. This mission which has transitioned from the earlier authorities to this authorities has been bedevilled with many challenges.
Between 2016 and 2022, the mission underwent a value-for-money audit, an EOCO audit, a re-evaluation by an impartial valuer, PPA ratification and a valuation for the up to date scope. But however all these challenges, the constructing has lastly been accomplished and commissioned.
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