GNPC pulls out of Black Stars deal

GNPC pulls out of Black Stars deal

State-owned oil company, Ghana National Petroleum Corporation (GNPC), has declared its intention to sever ties with the Black Stars following a decision by its Board to vote US$1.5million to support sports development in the country.

Per the 2015 Financial Report of the GNPC, the five-year sponsorship for the Black Stars will run out in December 2017.

However, the agreement signed between the GNPC and GFA, is renewable yearly, subject to the satisfaction of certain conditions.

According to sources at the Ministry of Youth and Sports (MOYS), the disbursement of the US$1.5million (which is 50 per cent of the Black Stars deal) to the MOYS will all but end the GNPC’s $3 million-a-year sponsorship, although it will continue to pay the salaries of the national team coach, Kwasi Appiah. The decision of the GNPC Board to finance sports development was announced in a statement issued by the Ministry of Youth and Sports last Wednesday, confirming the receipt of a communication from the GNPC Board to that effect.

“The Ministry of Youth and Sports (MOYS) can confirm receipt of communication from the Ghana National Petroleum Corporation (GNPC) that its Board has approved an amount of one million five hundred thousand dollars (US$1,500,000) to support sports development and sporting activities of the Ministry,” a statement signed by the ministry’s PRO, Elvis Adjei-Baah, said. “This follows strenuous efforts by MOYS to engage with GNPC for support for the development of sports which is in line with our Policy to partner the private sector for the development and promotion of sports in the country.

“In this regard, a first instalment of Seven Hundred and Fifty Thousand Dollars (US$750,000) is to be released to MOYS to be used for the stated objectives”.

It will be recalled that before approving the GNPC’s budget for the 2017 fiscal year, Parliament’s Sub-Committee on Mines and Energy — which has oversight responsibility for GNPC — asked that the funding for the Black Stars be removed from the company’s expenditure, stating that sponsorship of the national team was not among the core business of the oil firm.