A former Executive Director of Standard Chartered Bank and the Ghana National Petroleum Corporation (GNPC) Alex Mould has described the defense mounted by MD of the BOST to the company’s Gh¢400million losses as “gibberish” and “voodoo accounting.”
The embattled BOST MD Edwin Provencal sought to dismiss a report by the State Interest and Governance Authority (SIGA) that BOST posted a net loss of ¢291.02 million in 2020, representing a 186.97% increase on the net loss of Gh¢ 101.41 million posted in 2019 making a total of Gh¢400million in losses.
But in a statement, the embattled Provencal rubbished the SIGA 2020 Report.
He said “the report of the ¢400 million losses made by BOST is not accurate.”
The BOST MD blamed “unpaid tax obligations over the five-year period to date, the reduction in the value investment in GOIL and forex difference on dollar denominated loans for turning his “profit before tax” into a net loss for the period.
Gibberish, voodoo accounting
But in a rebuttal, Mr. Mould who headed Standard Chartered Bank for several years said BOST is totally misrepresenting the facts describing it as “gibberish and voodoo accounting”.
“The rebuttal on GHC400million loss is gibberish and pure cockamamie. It is voodoo accounting and total misrepresentation of the facts.” He wrote.
“I don’t understand this analysis, especially, on the unpaid taxes obligation. Is that not illegal?”, Alex Mould said.
“Unless he is talking about timing differences between financial reporting and tax reporting, that is, deferred tax
liabilities; which I do not think he was,”
“Investment mark-to-market losses will reflect in impairments. How will you be taxed, that is, asked to make a tax payment for an unrealized gain in any asset revaluation?” He asked.