Franklin Cudjoe, the founder of Imani Africa, has complimented Imani and other civil society organizations for applying pressure to the Attorney-General (A-G) to conduct a thorough evaluation of Torrentco Asset Management Limited (TAML) before to finalizing an agreement to transfer ownership of the Tema Oil Refinery (TOR) to the business.

He said that even if the Attorney-General’s report—which among other things said that it couldn’t guarantee for Torrentco’s credibility—came too late, the A-G made the right choice.

“I see the AG has also concluded that it doubts the credibility of Torentco to take over and manage the assets of TOR. Belated but good.

“The pressure mounted in June by IMANI in this brief analysis helped. We followed up with the OSP and he halted the transaction a few days ago,” he wrote on his Facebook page.

According to the Office of the Attorney-General (A-G), it is not in a position to attest to TAML’s legitimacy as the new owner of the TOR.

The TAML lacks the financial and technical capacity to carry out the planned deal, according to the A-G’s Due Diligence Report (DDR), which calls for a reevaluation of Torentco’s trustworthiness.

The lease arrangement between the TOR and TAML has been met with opposition by the General Transport, Petroleum, and Chemical Workers Union of the TUC Ghana.

According to the Transport Workers Union,“the actions of the individuals behind Tema Energy and Processing Limited seek to induce workers of TOR with 20% of its shares through misrepresentation of workers in an entity by the name ‘TOR Workers Charity Trust’ that never existed nor heard of at TOR, apart from the five individual directors and direct beneficiaries of this trust.”

They conveyed concern that the transaction may shortchange the nation because they believe the TOR Board of Directors has been compromised.

The A-G in its report said “TAML has no established affiliation with Vitol or with any other company, which has the needed funds and technical capacity to undertake the Proposed Lease Transaction and without whose support TAML lacks the financial and technical capacity to undertake its obligation under the Proposed Lease Transaction.

“TAML lacks the requisite licenses and documentation to undertake the proposed lease transaction, proceeding with the project will therefore be contrary to the law.
You may revert to us should you require any further clarification on the matter.”

READ THE FULL STATEMENT BELOW

RE: REQUEST FOR A RE-ASSESSMENT OF “TORRENTCO’S CREDIBILITY AS A LESSEE OF TOR’S ASSETS

The topic mentioned above is brought up. We also refer to your July 5, 2023, letter with the attached Due Diligence Report (DDR) on Torrentco (code name “Black Gold Project”), referencing GTPCWU/G.16/VOL 4/307.

By the above-mentioned letter, your office acknowledged receipt of our letter dated 29th June 2023 which requested for a copy of the DDR to enable this Office to respond to your initial request for an opinion on the credibility of Torrentco as a lessee of RI*OR’s assets.

We have studied the DDR, and advise as follows:

Observations

The provided text seems to be an excerpt from a detailed Due Diligence Report (DDR) regarding a prospective lessee, Torrentco Asset Management Ltd (TAML), for a Lease Transaction with TOR (Tema Oil Refinery) in Ghana. This DDR identifies several critical concerns that raise doubts about TAML’s credibility and capacity to engage in the proposed transaction. Here’s a breakdown of the key points mentioned:

1. Identity Changes: The report notes multiple identity changes of the proposed lessee, initially known as Decimal Company Limited (DCL), then Baybridge Asset Management (BAML), and now Torrentco Asset Management Limited (TAML). However, the focus of the report is on TAML, although the history of identity changes has been considered for completeness.
2. Financial and Technical Capacity Concerns: TAML is described as a newly incorporated company with a stated capital of GHS 500,000.00, lacking documentation to prove its ability to fulfill the proposed transaction. There are doubts about its capability to meet obligations due to inadequate financial and technical resources.
3. Technical Support and Affiliation Issues: Unlike its predecessor entities, TAML has not provided evidence of any technical support or affiliation with Vitol, a reputed multinational energy company. This absence of a support arrangement poses a concern about TAML’s capabilities.
4. Corporate Governance and Compliance: Concerns are raised regarding the corporate governance structure. Two directors hold multiple directorships in other entities, potentially impacting their focus on TAML. Additionally, compliance with legal requirements such as maintaining records and meeting regulatory standards has been lacking.
5. Irregularities in Incorporation: The date of TAML’s incorporation on January 1, 2023, a public holiday, raises questions about irregularities in the process.
6. Lack of Required Authorizations and Permits: TAML does not possess necessary authorizations and permits from various governmental agencies, including the National Petroleum Authority, Environmental Protection Agency, Ghana National Fire Service, among others, essential for the proposed transaction.
7. Office’s Opinion and Recommendations: The office responsible for the DDR expresses its inability to endorse TAML as a credible lessee due to the highlighted issues related to financial capacity, lack of affiliations, absence of required licenses, and compliance irregularities. They advise against proceeding with the transaction based on these grounds.

Ultimately, the DDR concludes that proceeding with the lease transaction involving TAML would likely be against the law and not advisable due to the significant concerns raised about the company’s capacity, credibility, and legal compliance

ATTORNEY GENERAL &
MINISTER FOR JUSTICE
Tel: 665 051/ 667609
Email:info@mojagd.gov.gh Website:www.mojagd.gov.gh

Source | Ghana360news.com