The resignation of Mr. Samuel Dubik Mahama as the Managing Director of the Electricity Company of Ghana (ECG) is a significant moment in the history of Ghana’s energy sector.
His departure, after enduring relentless criticism—some driven by envy and others by sheer ignorance—leaves behind two profound lessons for the nation: ECG does not need privatization, and it has the potential to be a model institution.
Despite the naysayers, his short but impactful tenure demonstrated that with competent leadership and the right strategies, ECG is more than capable of managing its own affairs and delivering on its mandate.
A Case Against Privatization
One of the key arguments against the privatization of ECG, as proposed during the controversial Power Distribution Services (PDS) arrangement, was that the company lacked the capability to effectively manage its operations.
Samuel Dubik Mahama’s tenure proved otherwise. Under his leadership, ECG achieved remarkable financial and operational milestones that dispelled the myth that privatization was the only solution to its challenges.
Privatization advocates argued that only external management could bring the needed efficiency and profitability to ECG. However, Dubik’s success story demonstrates that with the right leadership and strategic direction, ECG can thrive under its own steam. His tenure showed that the company is not only viable but also has the potential to be a self-sustaining and profitable entity.
ECG’s Transformation Under Dubik’s Leadership
Appointed in May 2022, Samuel Dubik Mahama’s tenure at ECG is worth a case study. The 2023 financial audit report presents a clear picture of the significant strides made under his leadership:
1. Phenomenal Revenue Growth: ECG’s total revenue skyrocketed by an impressive 81.27%, rising from GH¢8.690 billion in 2022 to GH¢15.733 billion in 2023. This remarkable growth, achieved in just over a year, is a testament to the effective revenue collection and management strategies implemented by Mr. Mahama and his team.
2. Improved Operating Profit: While ECG has historically struggled with operating losses, under Dubik’s leadership, these losses were significantly reduced from GH¢3.516 billion to GH¢1.714 billion. This is a tremendous improvement, reflecting the impact of his strategic interventions aimed at reducing operational inefficiencies and enhancing revenue collection.
3. Forex Challenges Managed: The forex losses of GH¢7.2 billion and a total net exchange loss of GH¢8.31 billion are reflective of the broader economic challenges facing many businesses in Ghana. Despite these challenges, ECG, under Dubik’s leadership, was able to maintain operational stability, pay salaries, and continue delivering on its mandate.
4. Enhanced Asset Management: ECG’s total assets for 2023 were valued at GH¢63.039 billion, with total property, plant, and equipment worth GH¢47.440 billion. This robust asset base indicates the company’s significant capacity to invest in and maintain critical infrastructure necessary for efficient power distribution.
5. Efficient Receivables and Payables Management: Despite owing GH¢36.436 billion to power producers, ECG managed to maintain a total receivable of GH¢15.458 billion. Under Mahama’s leadership, the company was able to navigate these financial obligations while keeping the workforce engaged and motivated.
Leadership that Delivered on ECG’s Core Mandate
Beyond the impressive financial figures, Dubik Mahama’s leadership ensured that ECG focused on its core mandate—delivering reliable and efficient electricity to Ghanaians. His tenure saw the introduction of the Enhanced Power App, which transformed customer service delivery and revenue collection, increasing monthly revenue from GH¢450 million to GH¢1.2 billion. This leap in revenue collection is a clear indication of his effective leadership and commitment to improving the company’s financial health.
He also managed to maintain industrial peace, a feat that has eluded many past leaders of ECG. By keeping the workers’ union content and focused on the collective goal of improving ECG’s operations, Mahama demonstrated exceptional leadership and negotiation skills. This stability was crucial in allowing the company to achieve its objectives without the disruptions of strikes and other industrial actions.
A Vision for a Better ECG
Samuel Dubik Mahama’s tenure is a powerful reminder that ECG can be a great institution capable of managing its own affairs. His leadership has set a precedent for future management teams to follow, showing that with the right focus and determination, ECG can be a beacon of efficiency and profitability. His success is a case study in how local expertise and leadership can transform a company often perceived as inefficient into a thriving entity.
The call for privatization should be put to rest. ECG has proven that it can stand on its own, provided it has the right leadership and support. The progress made under Dubik’s leadership should inspire confidence in ECG’s ability to continue this upward trajectory.
Conclusion
The resignation of Mr. Samuel Dubik Mahama is indeed a loss for ECG and the nation as a whole. However, his legacy will continue to inspire and guide the company as it navigates its way forward. His achievements have shown that ECG is more than capable of becoming a perfect institution, serving the energy needs of Ghanaians efficiently and effectively. It is now up to all stakeholders to build on the solid foundation he has laid and ensure that ECG continues to grow and thrive.
Samuel Dubik Mahama has left behind a blueprint for success, and the nation should be grateful for his service. His leadership has demonstrated that privatization is not the solution. ECG is capable, and with the right leadership, it can achieve greatness.
Columnist: Felix Ababio
