TOR lease agreement with TAM receives Staff Union backing amid controversy
In a bid to resuscitate operations at the Tema Oil Refinery (TOR), the Senior Staff Union has thrown its weight behind the ongoing negotiations between the refinery’s board, management, and Torentco Asset Management (TAM) as a potential strategic partner. Citing a lack of government capital injection into the refinery over the years, the union views the engagement with TAM as the sole viable option to revitalize TOR and overcome its current financial challenges. While the terms of the agreement have been hailed as “refreshing” by the union, concerns have been raised by experts, who criticize the deal’s opacity, accusing the government of exploiting the refinery’s resources and burdening the state with liabilities.
Chairman Bright Adongo, representing the Senior Staff Union, emphasized the union’s support for the TAM partnership, stating, “We consider the yet-to-be-finalized arrangements with the selected partner, TORENTCO Asset Managements, the only viable option available to bring back the refinery into operation, since successive governments are hesitant to inject capital into the operations of the refinery.” Adongo further clarified that TOR retains the right to terminate the deal and refund the cost of investment to TAM if a better alternative emerges during the agreement’s tenure.
The Senior Staff Union’s endorsement comes as a response to critics who have raised doubts about the transparency and fairness of the lease agreement. One prominent critic, Vice President of IMANI Africa, Kofi Bentil, expressed concern over the lack of clarity surrounding the deal. Bentil’s remarks echoed a growing sentiment among those who believe that the government is concealing its true intentions and potentially allowing the refinery to be undervalued, leaving the state with the burden of its liabilities.
However, the union vehemently rejects these allegations, asserting that the opposition to the deal stems from either a lack of understanding of the refinery’s dire situation or a deliberate attempt by adversaries of TOR to maintain the status quo for their own selfish interests. They argue that TOR’s current state of near-helplessness, marked by stagnant worker salaries and a mounting debt of over $500 million, is a result of political interference, mismanagement, and inadequate investment in the state-owned company. The union contends that the lease agreement with TAM represents a viable solution to address these longstanding challenges and pave the way for TOR’s revival.
Undoubtedly, the situation at TOR has become a matter of concern for well-meaning Ghanaians who recognize the strategic importance of a functional and financially stable oil refinery. The refinery’s inability to increase worker salaries over the past five years, coupled with its overwhelming debt, has placed immense strain on both the staff and the broader economy. The Senior Staff Union blames this predicament on successive governments’ reluctance to allocate sufficient funds to TOR, leading to a vicious cycle of underperformance and financial distress.
The union’s unwavering support for the TAM partnership reflects the hope that this alliance will inject the much-needed capital and expertise required to breathe new life into the refinery. By backing the agreement, the union believes that TOR can break free from its current quagmire and once again become a vital contributor to Ghana’s energy sector.
As the debate surrounding the TOR-TAM partnership intensifies, it is essential for all stakeholders to ensure transparency, accountability, and fairness throughout the negotiation process. Balancing the interests of the state, the refinery, and its workers is of paramount importance in charting a sustainable path forward. Only by fostering an environment of trust and openness can TOR regain its position as a robust and reliable player in Ghana’s oil and gas industry.
