The Managing Director of Tema Oil Refinery (TOR), Edmond Kombat, has given a damning account of the state of the refinery inherited in January 2025.
Speaking at the Government Accountability Series, Mr. Kombat revealed that the country’s only refinery was on the verge of total collapse.
According to him, the company had accumulated losses of about GH¢10 billion, with its debt rising from $300 million in 2016 to about $517 million.
He disclosed that the refinery’s two major production units were completely non-functional. The Crude Distillation Unit (CDU) had been out of operation since April 2021, while the Residue Fluid Catalytic Cracking (RFCC) Unit had been shut down since 2019.
The units had not received the required maintenance, reducing TOR to largely renting out storage space to Bulk Distribution Companies instead of carrying out its core mandate of refining crude.
Mr. Kombat further stated that much of TOR’s infrastructure was run down or obsolete. Out of the refinery’s 59 storage tanks, 18 were out of service, with some having been out of service since 2004.
On corporate governance, the MD revealed that TOR had not filed audited financial statements for six consecutive years, from 2019 to 2024.
Financially, he noted that the refinery was choked with statutory debts. It owed GH¢200 million to the Ghana Revenue Authority, GH¢20 million to SSNIT, in addition to debts owed to the Electricity Company of Ghana and Ghana Water Company. It also had GH¢190 million in outstanding obligations to staff provident fund, retirees and resignees. It further owed commercial entities and two state-owned companies including GNPC and VRA.
He added that staff morale was at its lowest, with staff leaving, the workforce divided, and more than 300 petitions over delayed promotions, some dating back ten years, awaiting review.
Perhaps most shocking, Mr. Kombat revealed that between 2019 and 2024, TOR sold third-party products belonging to three Bulk Distribution Companies, valued at millions of dollars, to pay staff salaries without the knowledge of the product owners.
By the end of 2024, TOR had negative equity of GH¢7.6 billion and was on the verge of being sold or leased for a paltry $21 million.
By Edem Mensah-Tsotorme
