The Auditor-General has flagged the National Petroleum Authority (NPA) for making payments totalling GH¢648.62 million for the installation, operation and maintenance of the Automatic Tank Gauging System (ATGS) without verifying that the required maintenance works were actually carried out.
The Auditor-General said the NPA failed to provide evidence that it had independently verified maintenance activities undertaken by the service provider, Rock Automation Solutions Limited (RASL), before authorising payments.
The finding is contained in the Performance Audit Report on the Operations of the National Petroleum Authority dated June 24, 2026, which examined the implementation and effectiveness of the ATGS project.
According to the report, the NPA paid RASL GH¢648.62 million for installing, operating and maintaining the ATGS between January 1, 2023, and May 4, 2026.
The Auditor-General further criticised the payment structure, noting that the Authority paid lump-sum amounts covering installation, operations and maintenance without separating the costs attributable to each specific activity.
The audit said the lack of an aggregated payment structure made it difficult to validate the amounts paid against the actual services delivered.
$90.7m ATGS project
The ATGS project was introduced to improve monitoring of petroleum products at retail outlets across the country.
The NPA contracted RASL to install ATGS at 4,000 retail outlets between 2021 and 2023 at a contract cost of $47.984 million.
The cost of operating and maintaining the system from 2021 to 2029 was estimated at $42.742 million, bringing the combined cost of installation, operation and maintenance over the nine-year period to $90.726 million.
However, as of the Auditor-General’s review in March 2026, RASL had installed ATGS at only 3,443 retail outlets, leaving an outstanding installation balance of 557 outlets.
Of the 3,443 outlets with installed ATGS, 1,813 were fully automated, while 1,630 were partially automated.
Maintenance records incomplete
Under the contract, RASL was required to undertake routine and regular maintenance support of the ATGS in accordance with an approved maintenance plan.
The NPA was also responsible for auditing the operations of the system and issuing guidelines to enable the service provider to implement the required services.
The Auditor-General acknowledged that a review of the 2025 maintenance schedule and report showed that RASL had planned and carried out maintenance activities at some retail outlets.
The schedule contained dates and locations where maintenance was undertaken.
However, it did not specify the exact type of maintenance performed at each outlet.
The audit report noted that RASL’s maintenance activities generally involved civil works, including infrastructure maintenance, cabinet repairs, tank farm works, forecourt maintenance and IT-related maintenance.
The Auditor-General, however, stated that the NPA had not provided the 2023 and 2024 maintenance schedules and reports for review and analysis.
Field inspections expose malfunctioning systems
The Auditor-General’s physical inspection of 30 selected retail outlets also raised concerns about the functionality and coverage of the ATGS system.
The inspection found that 23 outlets (64%) had ATGS installed, while 13 outlets (36%) did not have the system.
Among the 23 outlets with installed ATGS, 11 systems (48%) were not functional.
NPA officials in the regions attributed the non-functionality of the systems to several challenges, including system breakdowns, improper configuration and lack of integration between Underground Storage Tanks (USTs) and dispenser pumps.
The Chief Executive Officer of RASL explained that broken-down ATGS units had not been repaired because the NPA had not instructed the company to retrieve faulty parts and undertake repairs or replacements.
The Auditor-General also noted from an interview with the UPPF Coordinator that the NPA had not repaired or replaced broken-down ATGS parts since the system was introduced.
Fraud and revenue risks
The report warned that the absence or malfunctioning of ATGS created opportunities for retail outlets to stock and sell inferior petroleum products before scheduled monitoring exercises by the NPA.
The ATGS system was designed to monitor fuel volumes received at stations, check fuel temperatures, detect water presence in storage tanks and track petroleum product sales to support effective tax revenue collection.
However, the Auditor-General observed that weaknesses in the system reduced its effectiveness as a monitoring and revenue assurance tool.
Monitoring activities decline
The audit further revealed that the NPA’s monitoring activities declined during the period under review, despite an increase in the number of licensed retail outlets.
Between 2023 and 2025, the Authority’s planned monitoring activities declined by 19.82 percent, while the number of retail outlets licensed by the NPA increased by 1.27 percent.
The Auditor-General said the reduction in monitoring activities, combined with gaps in ATGS functionality, could weaken oversight of petroleum product quality and sales.
Infrastructure challenges delay installations
The Chief Executive Officer of Rock Africa explained that the outstanding 557 ATGS installations had not been completed because some retail outlets lacked the infrastructure required for installation.
According to him, several outlets did not have concrete forecourts, tank farms, dispenser pumps or sustainable sources of power needed to support the technology.
The audit also found challenges among outlets with partial automation.
The CEO of Rock Africa explained that some outlets needed to upgrade their infrastructure, install standby generators, repair faulty pumps and upgrade dispensers before achieving full automation.
The Auditor-General further noted that approximately 200 retail outlets with installed ATGS were inactive as of the end of 2024, raising additional concerns about the utilisation and value derived from the investment.
The report recommended stronger verification processes, improved maintenance monitoring and enhanced oversight mechanisms to ensure that payments made under the ATGS project correspond with actual services delivered and that the system achieves its intended purpose of improving petroleum sector monitoring and revenue protection.
