As part of efforts to address inefficiencies and stabilize the power sector, Minister-Designate for Energy, John Jinapor, has directed the Electricity Company of Ghana (ECG) to immediately cease all payments for deliveries.
Jinapor warned ECG employees, particularly those in the financial directorate, that there would be serious repercussions if they disregarded the directive.
On Thursday, January 9, 2025, Jinapor revealed that ECG has been experiencing substantial revenue losses in an interview with Eyewitness News. He highlighted the difficulty in managing and controlling the company’s more than 70 accounts effectively.
To better serve the public and stabilize the electricity industry, the Minister-Designate promised to implement extensive reforms aimed at optimizing ECG’s operations and improving its overall effectiveness.
“The challenge of money stems from inefficiencies. If ECG loses over 40% of its power generated, no matter what you do, you cannot solve the problem. Other countries are losing only about 2-4%. So, with this $100 worth of power, you buy and sell, but you only collect 60%, and even with that, there are many contracts, quality assurance, IT, provision, and others.
“They are all deducting money at the source. So, I have told ECG—this is also an instruction from the Chief of Staff—to cease all payments for supplies, and I mean it. I have told them, and if anybody is listening, especially in ECG, whether in the finance directorate, this was the instruction we gave them yesterday,” a report by citinewsroom.com quotes him as saying.
He continued: “Please don’t, and I mean it, because there will be serious consequences if you disregard this directive. We need serious buffers to stabilize the system. All those numerous accounts will be closed. They have over 70 accounts, and they cannot monitor them effectively, so we need to reform the sector, and we will reform it.”
Source: www.ghanaweb.com
