BOST, beacon of corporate governance-Veep

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 growth into a profitable company.

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 company unattractive for credit lines to stay in business.

The Vice President speaking at the commissioning of the new Head Office of BOST, said 30 per cent of the company’s tanks had been decommissioned with three out of the company’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 under the chairmanship of Mr Ekow Hackman for the approval of a 5-year turnaround strategy from 2020 to 2024 prepared by the management of BOST led by the Managing Director, Mr Edwin Provencal to save the company 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 commended.