Author(s): Ben Boakye, Eric Osei Owusu-Kumih, Kodzo Yaotse, Millicent Asah-Kissiedu
Ghana's Tema Oil Refinery (TOR) has a capacity of 45,000 barrels per day. TOR had a total debt portfolio of $320 million by 2003. So far, the public has paid a total of $700 million under the Debt Recovery (TOR) Fund Act of 2003 (Act 624). The Act required that the tax only be used to pay out TOR debts and interest. Despite the levy, the debt situation at TOR has deteriorated. After many years of public support for TOR via levies, what strategic choices are available to solve the company's problems? This paper examined secondary data on the operationalization of the TOR Debt Recovery Levy and the factors contributing to the TOR debt's unsustainable rise. The findings showed that the debt crisis at TOR is the result of political interference, a lack of accountability, and operational difficulties. The paper outlined two strong strategic alternatives for reversing TOR's woes.