Ghana Gas faces looming financial headwinds as Auditor-General flags $741m unrecovered receivables
The Ghana Gas Company finds itself entangled in a concerning financial situation, as the 2022 Auditor-General Report raises alarm over the company’s failure to retrieve $741 million in overdue receivables as of December 2021. The revelation underscores the pressing need for practical measures to collect outstanding debts from the relevant institutions.
With the indebtedness spanning a period of one to four years, the Auditor-General Report exposes a prolonged delay in receiving payments, posing significant liquidity challenges for the company. Despite the audit conducted in August 2022, the unrecovered receivables continue to burden Ghana Gas Company’s financial position.
Additionally, the report reveals a separate financial setback for the company, involving a ¢10 million investment with Liberty Asset Management Limited in August 2018. The investment carried an attractive 17% interest rate for a six-month period. However, the company was unable to redeem the principal amount plus interest, approximately ¢10.847 million, when it matured in February 2019. The Bank of Ghana’s license revocation of Liberty Asset Management Ltd in May 2019 further complicated the matter, leading to the funds being locked up.
In light of this development, the Auditor-General Report urges the Ghana Gas Company’s management to proactively pursue the recovery of the immobilized assets from the receivers of Liberty Asset Management Ltd.
The financial challenges faced by the Ghana Gas Company call for decisive action and strategic planning to address the unresolved receivables and locked-up investments. As investors and stakeholders closely scrutinize the company’s response, the prudent resolution of these financial concerns becomes paramount in safeguarding the company’s financial stability and future prospects.
