CEPIL with funding support from STAR Ghana successfully reviewed the 2013 and 2014 budgets to ensure compliance with oil and gas law. CEPIL in its two review reports identified acts of non-compliance with provisions of the Petroleum Revenue Management Act which was brought to the notice of the government. As a result, Government took the following measures to address the identified acts of non-compliance:
- An independent certifier was appointed in 2013 to verify benchmark revenue for the 2014 Budget Statement. Government now appoints an independent certifier to verify the benchmark revenue for each year. In 2014, the Ministry of Finance advertised for appointment of consultant to serve as an independent certifier to verify the benchmark revenue for the 2015 budget statement.
- Ghana Revenue Authority indicated they are making efforts to recover capital gains tax from two oil companies namely Kosmos and Sabre Oil which was one of the issues raised in CEPIL’s review report. Similarly eight new oil contracts that were recently signed and ratified by Parliament included provision on capital gain tax. Also, the Government of Ghana has now included a provision on capital gain tax in Petroleum (Exploration & Production) Bill now before parliament.
- The Government has also formalized the infrastructure fund that was proposed to be established in the 2013 budget statement contrary to the Petroleum Revenue Management Act in the amendment of the PRMA.
- Also, government has agreed to include in the revised Petroleum Revenue Management Act a provision for the funding of Public Interest Accountability Committee. As a result of the implementation of the project, CEPIL called for the review of the Petroleum Revenue Management Act and the Ministry of Finance invited inputs for stakeholders leading to the drafting of a revised proposal for the amendment of Petroleum Revenue Management Act (PRMA).