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NPA, NTL contract extension documents “executed lawfully”, says official

A citizen, Elikem Kotoku, in petition to the OSP dated 27 May, alleged that the NPA, NTL contract has been extended in breach of some procurement regulation

Hawa Tejansie Ajei, the legal director of the National Petroleum Authority (NPA), has explained to Asaase News that the extension of the contract for phase two of the petroleum product marking scheme (PPMS) with Nationwide Technology Limited (NTL), was carried out in line with the terms of the contract between the two entities.

A citizen, Elikem Kotoku, in an undated petition which was received by the Office of the Special Prosecutor on 27 May 2022, alleges that the NPA, NTL contract has been extended in breach of some procurement regulation by the National Petroleum Authority.

The petitioner in his petition to the Special Prosecutor, Kissi Agyebeng, wants the OSP to institute a full scale investigation into his allegation and to bring anyone found to have misconducted himself to book.

Contract terms

The Legal Director of NPA stated that the contract in question was signed between the two institutions on 28 January 2019, in line with the Petroleum Product Marking Scheme Regulation, 2012 (LI 2187) for a period of up to 6 years (2019 to 2025).

“The implementation date of the contract was 1 April 2019 for an initial period of 3 years. In essence, the first three years was to expire on 1 April 2022”.

“Clause 6.1 of the contract entitled “initial term” under the main heading, “terms of contract”, states that “the contract shall be in force for a period of 3 years commencing on the implementation date as defined” (1 April 2019).

“The next paragraph, clause 6.2 further states that without prejudice, to clause 6.1, this contract may be subject to further extension on mutually agreed terms prior to its expiration for such periods as may be agreed upon between the parties hereto (NPA and NTL) so, however that such extension shall not exceed a cumulative contract terms of 6 years from the implementation date so defined” (1 April 2019).

Extension decision

In line with these terms and upon the recommendation of the Director of Quality Assurance at the NPA, in a memo dated 9 March 2022, the Chief Executive of the NPA, Dr. Mustapha Abdul-Hamid extended the contract between the NPA and the NTL in line with the Contract.

The new two-year extension to the contract came into effect on 1 April 2022.

Fuel Marking Service

The Fuel Marking Service was first introduced in Ghana and awarded to Aunthentix Inc. (USA) in 2012. By the terms of the Contract Agreement (#GR/NPA/GD/30/2011), excuted on 29th October, 2012, the contract was to run for an intitial term of three years and was to be renewed and extended for a further two years. That initial contract was thus implemented for an initial three year period and was subsequently renewed in 2015 for a further two year term which expired in 2017.

The renewal terms of both contracts are of the same effect and have been implemented accordingly.

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