CEMSE Warns PIAC Budget Cuts Risk Undermining Oil Revenue Transparency
The Centre for Environmental Management and Sustainable Energy (CEMSE) has urged the government to reconsider proposed budget cuts to the Public Interest and Accountability Committee (PIAC), warning that the move could weaken oversight and transparency in the management of Ghana’s petroleum revenues.
The call follows recent concerns by PIAC over the government’s plan to divert a greater portion of oil revenue from the Annual Budget Funding Amount (ABFA) toward the “Big Push” infrastructure agenda — a flagship initiative aimed at financing large-scale public works.
Benjamin Nsiah, Executive Director of CEMSE, said that the government’s decision to reduce PIAC’s operational funding sends a troubling signal about its commitment to accountability and transparency.
“Such huge cuts to PIAC’s budget — which will certainly affect its expenditure and operations — suggest a government that may be shielding itself from responsibility, accountability, and transparency,” Mr. Nsiah said.
Established under the Petroleum Revenue Management Act, PIAC serves as a statutory watchdog over the collection, allocation and utilisation of petroleum revenues. Its periodic reports have been central to promoting fiscal discipline and public accountability in Ghana’s oil sector.
Mr. Nsiah noted that many petroleum-funded projects under the ABFA remain uncompleted, requiring intensified monitoring and verification by PIAC. “If government cuts their budget, it sends a signal that there is no willingness to allow PIAC to scrutinise how petroleum funds are being utilised,” he said. “This will negatively impact the efficient and transparent implementation of petroleum revenues and infrastructure development.”
He cautioned that the underfunding of PIAC could lead to poor project tracking, abandoned infrastructure and a loss of public trust in how oil proceeds are being managed.
“We should not allow historical projects to be left to decay,” he said. “Adequate funding for PIAC is essential to track these projects and ensure transparency in their execution.”
CEMSE has therefore called on the government to restore full budgetary support for the Committee to enable it to continue its statutory oversight role.
“Government must reconsider its decision and provide the necessary resources for PIAC to operate effectively and report to Ghanaians on how petroleum revenues are being used efficiently and responsibly,” Mr. Nsiah added.
