Ghana’s PIAC: A Beacon of Transparency in Oil Governance, But Challenges Persist

Story by Fada Amakye

The Public Interest and Accountability Committee (PIAC) of Ghana has marked a significant milestone, issuing its 29th statutory report on the management of the country’s oil resources. Speaking at an event, Prof. Henry Kwasi Prempeh, Executive Director of the Ghana Center for Democratic Development (CDD), hailed PIAC’s survival as an accomplishment, given the polarized nature of Ghanaian politics and the fact that it is not a constitutional body.

Prempeh noted that PIAC’s establishment was a major achievement, considering the initial resistance from the political establishment. The committee’s mandate is to track oil revenue and report to Parliament, promoting transparency and accountability in the oil sector.

However, Prempeh expressed disappointment that Parliament has not treated PIAC’s reports with the same level of scrutiny as Auditor General’s reports, calling for a debate on the issues raised. He also suggested expanding PIAC’s mandate to cover other natural resources, such as gold and critical minerals.

The PIAC’s work is crucial in mitigating the “resource curse” often associated with oil-rich countries. Ghana’s democratic context provides an opportunity for effective management of oil resources, but challenges persist, including polarization and winner-takes-all politics.

Prempeh’s remarks highlight the importance of PIAC’s role in promoting transparency and accountability in Ghana’s oil sector, and the need for continued support and strengthening of the institution.

Ghana’s Oil Revenue Transparency: A Call to ‘Brand’ ABFA-Funded Projects

A key recommendation has emerged from a recent event discussing Ghana’s oil revenue management: branding projects funded by the Annual Budget Funding Amount (ABFA) to enhance transparency and citizen engagement. Prof. Henry Kwasi Prempeh, Executive Director of the Ghana Center for Democratic Development (CDD), emphasized the importance of making citizens aware of how oil revenues are being utilized.

Speaking at the event, Prempeh highlighted that branding ABFA-funded projects would help citizens connect the rents received from natural resources to tangible development outcomes. He cited examples from other countries where such practices are common, enabling citizens to track how their money is being used.

The discussion also touched on structural issues within state-owned enterprises, particularly those in the petroleum industry, which are often exempt from constitutional scrutiny due to their commercial nature. Prempeh argued that this exemption poses systemic risks, given the significant portion of GDP that flows through these entities.

The CDD, as part of the Constitutional Review Commission (CRC), has advocated for constitutional treatment of state-owned enterprises to ensure accountability and transparency. Prempeh emphasized that the commercial nature of these entities should not justify exclusion from scrutiny, but rather necessitate different constitutional treatmentThe call for branding ABFA-funded projects aims to promote transparency and accountability in Ghana’s oil revenue management, ensuring citizens benefit from the country’s natural resources.