Concerns Raised Over Credibility of Torrenco Asset Management in Tema Oil Refinery Partnership

The Office of the Attorney General and Ministry of Justice has conveyed reservations regarding the credibility of Torrenco Asset Management Limited (TAML) as a potential partner for the revival of the ailing Tema Oil Refinery (TOR). This skepticism arises following Torrenco’s agreement with the TOR board to establish a partnership involving the leasing of a portion of TOR to Torrenco.

In response to the General Transport, Petroleum, and Chemical Workers Union of the Ghana Trades Union Congress, the Office of the Attorney General and Ministry of Justice explained that the Due Diligence Report (DDR) raised significant concerns about Torrenco’s financial and technical capacity to execute the proposed transaction.

https://drive.google.com/file/d/1xdxK4NVMSIm_wtRO1Sxz7LauJ4a3jxQA/view

The letter stated, “Based on the DDR submitted to our Office, our inquiries, and the above observations, our Office is not in a position to vouch for the credibility of TAML as a lessee in the Proposed Lease Transaction with TOR.” It emphasized that Torrenco lacks the requisite financial and technical capabilities based on the DDR findings.

Furthermore, the letter highlighted that Torrenco has no established affiliation with Vitol or any other company possessing the necessary funds and technical capacity for the proposed lease transaction. The absence of essential licenses and documentation required for the project was also noted, leading to the conclusion that “proceeding with the project will be contrary to the law.”

This development adds a layer of uncertainty to the proposed partnership, prompting further scrutiny from stakeholders and regulatory bodies.

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