Category: News

 

 

 

 

Adnan Adams Mohammed

 

Issuers of securities to the public and market operators have been directed to submit their audited annual financial statements to the Commission, not later than three months after the close of their financial year in accordance with Regulations 54 and 33 of L.I. 1728.

 

Collective Investment Schemes have also been given four months maximum to submit their audited annual financial statements to the Commission and circulate their annual Investor’s Report to their shareholders/unit holders after the close of the financial year in accordance with Regulation 50 (2) of L.I.1695.

 

The Securities and Exchange Commission has informed Issuers and Market Operators of an extension of its deadline for the submission of audited annual financial statements against the background of the disruption created by the outbreak of the Coronavirus (COVID-19) pandemic.

 

“Issuers and Market Operators who would not be able to meet the deadline for submission of their audited annual financial statements to the Commission and circulation of same to investors may apply to the Commission for extension of time before the expiry of the submission deadline” SEC noted in a statement.

 

Similarly, the Ghana Stock Exchange has approved requests for the extension of its deadline for the submission of audited financial statements for the year ended December 31, 2019, made by six listed companies.

 

The six listed companies include: Enterprise Group Limited, which sought for an extension to April 30, 2020; Intravenous Infusions Limited to April 14, 2020; and Fan Milk Limited to April 30, 2020. The others are Total Petroleum Ghana Limited which also requested for an extension to April 30, 2020; Aluworks Limited to August 31, 2020; and GOIL Company Limited to April 30, 2020.

 

This was contained in notice issued to the general investing public by the Exchange Monday, March 30, 2020.

 

The GSE has assured all investors that it will remain fully operational on digital platforms, considering all directives that have recently been issued by the government.

 

“The Ghana Stock Exchange wishes to inform the general investing public that its offices will be physically closed during the period of the restriction on movement. However, trading on the market will continue uninterrupted.

 

“This is because the Exchange operates its market on an Automated Trading System (ATS) which brokers trade on via the internet and a Wide Area Network (WAN),” it explained.

 

The Exchange also has a Disaster Recovery Site (DRS) which allows seamless business continuity if the need arises. Consequently, investors will be able to have their orders executed by their brokers who are Licensed Dealing Members (LDMs).

 

 

 

Adnan Adams Mohammed

 

Some Civil Society Organizations (CSOs) have on the government to ensure transparency, prioritization of the poor and vulnerable businesses in the informal sector, amongst others with regard to contraction and disbursement of funds from the World Bank and the International Monetary Fund.

 

The CSOs; Friends of the Nation, Center for Public Interest Law and Natural Resource Governance Institute in a statement said, as the government seeks rapid financial facilities from the World Bank (GHS 1,716 million) and the IMF (GHS 3,145 million), we expect that the processes for contracting and utilization of these funds be transparent and must prioritize the poor, vulnerable businesses in the informal sector, primary health care providers and especially target women and Persons with Disability.

 

They showed support for expanding the Livelihood Empowerment Against Poverty (LEAP) programme to cushion the impact on extremely poor people and further called on Parliament to ensure that all legislative amendments requested by the Ministry of Finance have a transitional and temporal period and provision after which the original laws amended come back into force.

 

“We recognize that these amendments are sought to address extraordinary situations in such an extraordinary time therefore, when all this stabilizes and when oil price appreciates by at least 100% further, the ‘‘normal’’ times should be governed by ‘‘normal’’ laws”, the CSOs stated in apress statement issued last week.

 

On 30 March, 2020, the Minister of Finance tabled before Parliament some fiscal proposals in order to enable the government tackle the COVID-19 pandemic.

 

But the CSOs said though they welcomed government on the positive steps outlined, however, they are deeply worried about some radical proposals which, if carried through, would have serious implications on petroleum revenue management in particular and fiscal governance during and post the pandemic.

 

The proposals include invoke section 23 of the Petroleum Revenue Management Act, 2011 (Act 815 as amended) (“PRMA”) to lower the cap on the Ghana Stabilisation Fund (GSF) from the current US$300 million to US$100 million ostensibly to allow for transfers of sufficient funds to the Contingency Fund to finance government’s Coronavirus Alleviation Programme and the amendment of the PRMA to allow for withdrawal from the estimated US$591.1 million in Ghana Heritage Fund (GHF) to undertake urgent expenditures in relation to the Coronavirus pandemic.

 

With regard to the Ghana Stabilisation Fund, the CSOs said the proposal though legal is questionable.

 

“Like in many instances over the years, the proposed US$100 million cap is very low and has the potential to trigger government’s appetite for borrowing against the Sinking Fund to the disadvantage of the constitutionally mandated Contingency Fund established for purposes of helping government mitigate the impact of unanticipated fiscal imbalances.

 

It is precisely because the Contingency Fund has consistently been starved of the needed earmarked funds that we are hard hit by this crisis in the first place. If successive governments had adhered religiously to the requirements of law, we should not be having difficulty mitigating the economic impact of the present crisis (assuming the 30th March crude price of US$22.9 a barrel) without having to cap the GSF at US$100 million below the current threshold of US$300 million”, it emphasised.

 

In the case of the Ghana Heritage Fund, they pointed out that the proposal should not be welcomed at all.

 

This because the Petroleum Revenue Management Act (PRM) makes provision for excess resources to be deposited into the contingency fund. However, adherence to this requirement has often been problematic as observed by many CSOs.

 

“If this were adhered to, the proposal to use the Heritage Fund which is meant to be an intergenerational investment for when Ghana’s oil resources are depleted to mitigate economic impact of COVID-19 would not be necessary”. It said.

 

The 5% threshold of fiscal deficit as a percentage of GDP as per the Fiscal Responsibility Act (Act 928) are also proposed to be amended.

 

However, the CSOs said the Finance Minister’s statement does not indicate by what margin, adding, this discretion is not anything welcoming and needs to be plugged.

 

 

 

 

Adnan Adams Mohammed

 

The Energy Sector Levy Act (ESLA) Plc’s 12-year cedi-denominated bond re-opened, last week has been oversubscribed attracting all-time high yield between 20.50 to 21.00 percent.  

 

The instrument was traded as Tranche E4-B under the GHC10 billion bond programme. Bids submitted amounted to almost GHC1.2 billion (GHC1,199,538,146.00) within the pricing range of 20.50 percent to 23.50 percent. Of this, GHC1,199,052,646.00 was accepted within the pricing range of 20.50 percent to 21.00 percent.

 

The ESLA bond, which was originally issued on January 13, 2020, pricing echoes the current hard time the global economy and financial market is going through amidst the pandemic Coronavirus (COVID-19).

 

“Proceeds from this issuance will be used to settle portions of the outstanding legacy debt and other obligations due to suppliers and other creditors within the energy sector,” ESLA stated in a statement.

 

The oversubscription of the highest yielding cedi-denominated bond happened in the same week the Bank of Ghana announced a cut in Monetary Policy Rate by 150 basis points to 14.5 percent.

 

The bonds will mature on December 29, 2031.

 

Initially, the target size of Tranche E4B was GHC600 million and the minimum and maximum sizes the Issuer intended to accept were GHC300 million and GHC1,867,234,000 respectively.

 

This brings the total issuance under the GHC10 billion bond programme to GHC8.294 billion. The total outstanding amount on ESLA Plc bonds is GHC7.629 billion comprising GHC2.260 billion, GHC2.740 billion, GHC1 billion and GHC1.629 billion for the 2024, 2027, 2029 and 2031 bond maturities respectively.

 

Of the outstanding bonds, GHC664 million was redeemed in a buyback transaction financed with funds from the Lock Box account. This is made up of portions of the 2024 and 2027 bonds.

 

At the initial issuance of Tranche E4, ESLC Plc indicated that, the bond issuance had been necessitated due to the enhancement of inflows into the ESLA, as a result of the increments in the energy debt recovery levy by the government announced during the 2019 mid-year budget review.

 

E.S.L.A. Plc is expected to continue to undertake periodic buyback and cancellation of outstanding bonds using proceeds in the Lock Box Account via open market operations.

 

The Bonds are backed by the Energy Debt Recovery (EDR) Levy imposed under the Energy Sector Levy Act.

 

The Tranche E4-B Bond issuance has been listed on Ghana Fixed Income Market (GFIM).

An energy expert is awed as to why the National Petroleum Authority (NPA) will be fleecing about 98 percent of consumers of Liquified Petroleum Gas (LPG) only two (2) percent consumers to enjoy. 

The NPA has introduced a GHp13.5 new Cylinder Recovery Margin during the last Petroleum Pricing window. The new levy or margin is to help the LPG Marketing Companies offset aspects of the cost involved in procuring and branding cylinders for the new energy policy, the Cylinder Recirculation Model (CRM) which is currently being piloted in two assemblies, thus, Obuasi and Kwaebibirem Municipal assemblies.

The new margin adds up to increase the price of LPG at the pumps at the expense of consumers nationwide, despite only two assemblies are benefiting now. Since the announcement by the NPA, many Ghanaians are at a shock for such decision at a time when global citizens are facing economic hardship amidst COVID-19 mitigation measures being implemented by nations.

“Why the decision to immediately burden all consumers (even those outside of CRM pilot and operational regions), with the margin? Why should consumers outside the new policy’s pilot regions pay now?”, Alex Mould, former NPA and GNPC CEO have quizzed in a statement he shared in reaction to the introduction of the new margin.

Not only is the energy and financial expert is worried about the charging of all LPG users for only 2% users to benefit from a new policy but also he believes the timing is bad. 

Below is the full statement:

WHY MUST 98% of LPG CONSUMERS PAY NEW MARGIN TO BENEFIT ONLY 2% – ALEX MOULD TO GOVERNMENT

We understand the National Petroleum Authority (NPA) introduced a GHp 13.5 Cylinder Recovery Margin during the last Petroleum Pricing window.

This is bad timing by the Authority;  considering the current health crisis the last thing the consumer needs is to be burdened with this margin during such difficult and tumultuous times. 

As such, the NPA owes the general public a thorough and detailed explanation. We understand they’ve engaged stakeholders in 10 out of the 16 regions but I still can’t fathom why the rush to introduce the new margin when there’s not enough literature out there to educate and prepare the minds of LPG consumers. 

For starters, why the decision to immediately burden all consumers (even those outside of CRM pilot and operational regions), with the margin? Why should consumers outside the new system’s pilot regions pay now? 

This distribution system is being given a trial run in the following pilot sites: Kade in the Eastern region and Obuasi in the Ashanti region, which currently account for less than 2% of total LPG usage.

However, as the Cylinder Recovery Margin has been introduced nation-wide, this connotes 98% of consumers are paying for the benefit of the 2% i.e. those within the two pilot regions.

Silently slipping the Cylinder Recovery Margin into the pricing model with no prior communication is not only unfair but comes across as deceitful. 

Especially at a time when prices have fallen and the benefit should accrue to consumers!!!

Some other questions that the NPA needs to answer include the following:

– Is there a roadmap that can be shared with the public to understand the complete rollout plan?

– How will the margin be collected, and what accounting mechanisms are in place to ensure transparency and effective disbursement measures? i.e. Payment Accounts, Responsible parties for disbursement, etc.  

– Is there a communication plan for the public to learn the guidelines regarding usage, phase-out, and replacement of current cylinders?

– Clarity on why consumers who have already invested in ownership of cylinder(s) are being unlawfully charged for new ones with no additional benefits?

 – How will current cylinder owners refill their cylinders in this new recirculating model?

– Are cylinder owners now stuck with redundant cylinders that can not be filled? There should be some sort of cylinder exchange or replacement plan, with a buy-back or exchange mechanism; so existing cylinders will automatically be replaced, free of charge, in this recirculation exercise. 

These are mind boggling questions that I’ve researched myself but surprisingly found little or no answers on th

e internet nor the NPA’s website.

The LPG Marketers have called for a withdrawal of this new LPG margin. Yet, the NPA continuously insists that the new LPG margin did not result in LPG price hikes.

 

It’s a disingenuous and inconsiderate Regulator who disregards the plight of consumers!!! 

END

Signed

*Alex Mould*

*04/04/2020*

 

 

 

Adnan Adams Mohammed

 

Government’s decision to introduce two new levies on petroleum products including Liquified Petroleum Gas has been described as insensitive to citizens at a time when the world economy is at its worst times.

 

 

“Government is being insensitive towards consumers”, Alex Mould, former CEO of NPA and GNPC has said.  

 

 

The NPA, in a circular issued on April 1, 2020, announced a new levy of GHp13.5 as Cylinder Investment Margin, to help the LPG marketing companies offset aspects of the cost involved in procuring and branding cylinders for the new energy policy (the Cylinder Recirculation Model) as well as an increase in Fuel Marking Margin from GHp3.0 to GHp4.5 per litre for fuel. But, the energy and finance expert, instead, wants the government to reduce fuel prices drastically to help cushion commercials drivers who are asked to reduce number of passengers amidst social distancing.

 

 

“I am hearing that the National Petroleum Authority has introduced new levies on the price build up on all fuel products including LPG. I think that bad & unfair to consumers”, Mr Mould reacted in awe during a radio discussion.

 

 

Meanwhile, a notice shared by Anny Osabutey from Corporate Affairs Department of NPA indicated that, there are reduction in the price of petrol at the pumps, with Goil reducing their price to about 10 percent.

 

The notice explained that, “this means you get to save some money for other essential expenses at this critical time. The price of gas has also recorded a significant reduction.”

 

Apparently, energy experts had predicted over 20% reduction in the fuel prices at the pump. But, the new levies seems to be disadvantaging fuels users as they have to still pay more even when world oil price has reduced to all time lowest in 18 years record trading at US$20 per barrel as at Wednesday, April 1, 2020.

 

 

The former Executive Director of Stanchart Bank praised the government for doing a good job with measures to combat the COVID-19 pandemic shocks, but thinks the government was two weeks late in implementing the measures.

 

 

The newly introduced levy or Cylinder Recovery Margin by the National Petroleum Authority (NPA), is to support LPGMCs/OMCs ahead of the implementation of the cylinder Recirculation Model (CRM) not to burden consumers.

 

The NPA in March launched the pilot phase of the policy in Kade in the Eastern region and Obuasi in the Ashanti Region.

 

The policy is intended to change the current mode of gas distribution into a more secured and safe manner.

 

The policy is to ensure increase usage of LPG from the current 25% to 50% by 2030.

 

As part of the CRM policy, the LPGMCs and OMCs will be responsible for the branding, safety and maintenance of the cylinders.

 

Customers will no longer have to take an empty cylinder to be filled, they simply take their empty cylinder to an OMC/LPGMC and pick up a filled cylinder.

 

There will be different cylinder sizes from 3kg to 14.5kg to ensure that consumers pay for what they can afford.

 

Contrary to claims by some interest groups in the petroleum industry that the levy will burden the consumers, sources say the Cylinder Investment Margin of 13.5 pesewas is rather to support the marketers procure and maintain the cylinders.

 

A source at the NPA says the regulator is determined to support the LPGMCs and Oil Marketing Companies, and has consistently engaged and consulted them on all aspects of the implementation of the energy policy.

 

 

 

Mike Owusu, Program Coordinator of Light for Children Ghana is saddened by the way the head porters (Kayaye) situation is being handled.

 

 

He called the bluff of the leadership National Disaster Management Organisation (NADMO) for not being proactive to put in measures to cushion the living condition of the less privileged who sleep and live on the streets in the major cities.

 

 

Part of the country are experiencing partial lockdown under executive orders which started, yesterday, 30/03/2020, for the next two weeks in attempt to help curb the spread of the pandemic COVID-19.  

 

“Whoever is in charge of NADMO must bow his head in shame”, he said. “In deciding the lockdown, we should have anticipated the homeless and our people in the streets, and how to handle them.”

 

However, Mr Owusu suggested some immediate measures to help solve the situation. “Ok I do not intend to rant. I wish to propose the following:

 

1. We must as a matter of urgency identify all the schools and churches available for use.

 

2. Convert Independent square, Accra sports Stadium, Elwark Sports Stadium and similar facilities into a temporary shelter.

 

3. Call and direct all homeless, Kayayees, misplaced people to such places.

 

4. Use the opportunity to screen and provide them with basic items such as tissues, sanitizer and other cleaning items.

 

5. Contract the school feeding caterers to provide them food. Or use the matrones in the secondary school to cook for them. We can also employ the hotels restaurants to cook for them. This way we can get the hotels to generate revenue at the same time.

 

6. Philanthropist and well-meaning Ghanaians can mobilized to support such effort by donating in kind and cash. Some of us can even volunteer our time in times like this.

 

“This way we can help achieve the goal of the lockdown with a human face.”

 

 

 

After listening to the Hon. Finance Minister in Parliame

nt earlier today justify the need to use the heritage fund in the fight against COVID-19, I shall humbly submit that before the Akufo-Addo administration depletes the heritage fund reserved for the next generation, we first consider the following 10 suggestions:

 

1) 50% pay cut for all political office holders;

 

2) Reduce by 60% the number of Ministers and Presidential Staffers;

 

3) Close and realign many of the Ministries which would become redundant after the ministerial downsizing;

 

4) Lay off all Personal/Special Assistants to Ministers and Presidential Staffers;

 

5) Suspend all Ex-Gratia payments;

 

6) Interim closure of at least 50% of our diplomatic missions abroad and recall staff to Accra;

 

7) Cancel contracts of all consultants in the public sector;

 

8)Put a freeze on all prestige projects which can wait including the national cathedral, marine drive project, new passport office and the regional coordinating council offices for the six new regions;

 

9) Suspend the phenomenon of free fuel for the category of public servants who benefit;

 

10) Repeal all tax waivers granted in recent years for non-essential services and commodities with the view to abolishing the practice moving forward.

 

If we muster the political will to do these, the heritage fund will most likely be left intact for our children.

 

May the generation that will come after us not be disappointed that we bequeathed them with virtually nothing because we refused to sacrifice and consider other patriotic options in this watershed period of history.

 

Adnan Adams Mohammed

 

Alexander K. Mould, a finance and energy expert, is calling on the government to effect a 20 percent reduction in fuel prices to help alleviate public transport social distancing losses as the commercial drivers are directed to reduce the number of passengers the buses take. 

 

 

In a press statement issued, yesterday, the former National Petroleum Authority Boss noted that increased transportation cost will worsen the anticipated effect of the global pandemic (COVID-19) on the general economy and the cost of living of ordinary citizens such as loss of income and businesses and increase in the costs of goods and services.

 

 

The challenges of the current season provide a responsibility to quickly visit “win-win” opportunities to alleviate some of the financial burdens on all Ghanaians as April 1^st, 2020 presents a “no-brainer” opening to reduce the cost of petrol at the pump.

 

 

“Petrol is at its lowest price since the 1990s – $0.38/gallon wholesale from U.S refiners and Wholesalers. With this in mind, Ghana should expect a drastic drop of up to 20% in petrol prices on April 1^st”, Mr Mould suggested. Adding that, “Petrol is currently imported into Ghana for less than $0.24/litre or GHS 1.40/litre (based on FX rate of GHS5.85 GHS/USD).”

 

 

Read below the full press release:

 

PRESS STATEMENT

 

20% reduction in fuel prices will alleviate public transport social distancing losses – Alex Mould

 

As the lockdown to combat the spread of the Coronavirus is now in effect, Ghanaian families and businesses will have to reset. A domino effect on our economy caused by the pandemic is expected to bring about challenges such as loss of income and business, and increase in the costs for goods and services, and other factors impacted by increased transportation costs.

 

The challenges of the current season provide a responsibility to quickly visit “win-win” opportunities to alleviate some of the financial burdens on all Ghanaians – April 1st presents a “no-brainer” opening to reduce the cost of petrol at the pump.

 

Petrol is at its lowest price since the 1990s – $0.38/gallon wholesale from U.S refiners and Wholesalers. With this in mind, Ghana should expect a drastic drop of up to 20% in petrol prices on April 1st.

 

Petrol is currently imported into Ghana for less than $0.24/litre or GHS 1.40/litre (based on FX rate of GHS5.85 GHS/USD).

 

The daily price indicators used for the Petroleum Price Build-Up (PBU) as published by the National Petroleum Authority (NPA) are as follows:

– 1st March: $540/ton (t)

– 16th March: $434/ton (t)

– 1st April: $212/ton (t)

 

This translates to a drop of 50% from 16th March and a 60% drop from 1st March.

 

Going by these Price Build-Up (PBU) indicators and the methodology used to derive them, we expect petrol prices to go as low as GHS GHS4.00/litre. This price can go down even further with Government interventions in the form of tax breaks.

 

From the PBU, the taxes and distribution costs of petrol are GHS1.50/litre and GHS1.10/litre respectively (or GHS 2.60 combined); which represents about 65% of the pump price of petrol.

 

This makes Ghana one of the highest-taxed countries with respect to petrol.

 

I am reliably informed that Government is being advised to seriously contemplate removing the nuisance “Special Tax” (GHS0.46/litre) and the outdated “Price Stabilization” levy (GhS0.16/litre). If done, we could see prices fall even lower than the expected GHS 4.00/litre to below GHS 3.50/litre.

 

Enacting these very doable reductions would be a relief to so many – remembering that nearly 80% of our population constitutes key workers who, in serving the public will have to embark on alternate (and more expensive) transportation means to keep themselves safe, as per social distancing guidelines.  

 

Notes

 

·         Note: a US Gallon is 3.875 litres whereas a UK Imperial Gallon – what is used in Ghana – is 4.5 litres.

·         PBU is agreed to by all the players in the value chain – (Chamber of Bulk Distributors (CBOD), Association of Oil Marketing Companies (AOMC), Tanker Owners, and Tanker Drivers; collectively the sector players).

 

END

 

Signed

Alex Mould

30/03/2020

 

Adnan Adams Mohammed

 

Some finance and extractive sector experts have called on the government to abort or reconsider its intention to seek for amendment of the Petroleum Revenue Management Act, 2011(ACT 815) as amended to allow it use the Heritage Fund for the COVID-19 emergency expenditure.

 

 

Professor John Gatsi, a finance and economics expert is suggesting the government rather utilize the Stabilization Fund and take its hands off the Heritage Fund. He expressed that, “Any use of majority strength in parliament to rope in the Heritage Fund defeats the fine arrangement which serves current fiscal interest, public expenditure interest in times of huge petroleum revenue loss and intergenerational protection.”

 

 

The Finance Minister, Ken Ofori-Atta, yesterday, requested Parliament to amend the Act to allow government to use monies from the Heritage Fund. Consequently, a researcher is calling on the government to cut some budgeted expenditure and use the funds for the COVID-19 emergency expenditure.

 

 

“There are ways to get funds to spend”, Obrempong Yaw Ampofo, Senior Research Fellow at Western Center for Extractive Research and Advocacy, a policy Think-thank base in the Western Region, has said in support of Prof Gatsi’s suggestions that the government stay off the Heritage Fund and look else for funding to fight the COVID-19.

 

 

“What strikes me is the president recognizing that we are not in normal times, but we still want to spend in other areas how we’ve known and done in the normal times”, he wondered.

 

 

“Except for critical infrastructure and spending, I think the “not normal times” should reflect in other facets of our public spending.

 

 

“The donation of three months of his salary is a good call, and I see others following similarly, except to say that, we needn’t have to create a COVID-19 fund, but rather direct the funds to the National Contingency Fund that has been dissipated”, Mr Ampofo posited.

 

Parliament is only allowed per the ACT to pass a resolution of MAJORITY of parliamentarians only after 15 years from 2011 (which can only happen from 2026) to withdraw a portion of the accumulated interest and not the principal. It is therefore clear that the object and timing of the Heritage Fund does not allow for any utilization under the present circumstances.  The object of the Heritage Fund is to serve as an endowment for future generations of Ghana citizens who will be alive at the time when all petroleum activities come to an end.   

 

 

Readers should note that the government has factored both the Stabilization and Heritage Funds into the foreign reserves and any undue withdrawal may undermine their role in the reserve position of the country.

 

 

“Parliament is hereby called upon to maintain fiscal discipline principles by ensuring that we do not consume all we have just because of the Coronavirus”, Prof Gatsi noted.

 

 

Mr Ofori-Atta in his presentation made to Parliament on the economic impact of the Coronavirus pandemic suggests that the targeted surplus primary balance and lower than 6% budget deficit are not to be expected by end of the fiscal year. The deficit target now is 6.6% of GDP implying that the Fiscal Responsibility Act not in control. This is not strange because of the strength and multi-dimensional effects of the pandemic on agriculture, trade, services, imports and petroleum receipts.

 

 

He also requested parliament to approve GHC1 billion from the Stabilization Fund as required by sections 9 &12 of the Petroleum Revenue Management Act, 2011(ACT 815) as amended.

 

 

The object of the Stabilization Fund is to serve as cushion for the finances of the country in times of massive unanticipated shortfall in petroleum revenue. This request by the minister is appropriate as it is in line with the object of the Act.

 

 

Here, Prof Gatsi again is suggesting that, the amount requested must be granted on quarterly basis and in line with a withdrawal formula in section 12 in which: Parliament considers 75% of the estimated quarterly shortfall of the ABFA; Parliament considers 25% of the balance standing in the Stabilization fund at the beginning of the fiscal year; and Parliament is to grant to the Finance Minister, an amount considered to be lesser of (1) and (2) above.

 

“This shows a deliberate attempt to protect the Stabilization Fund from being dissipated even when there is reason to withdraw.

 

“Though the Minister is acting within the law to request for a withdrawal from the Stabilization Fund, parliament must adhere to the rule in line with the wisdom of Act 815”, he added.