ECG grappling with $1.5bn debt to IPPs
Energy Committee Ranking Member in Parliament, John Jinapor, has posited that the Electricity Company of Ghana (ECG) is struggling with a debt burden of $1.5 billion owed Independent Power Producers (IPPs).
The disclosure by Mr Jinapor comes amid heightened scrutiny over ECG’s financial management practices, particularly its failure to meet financial obligations to Independent Power Producers (IPPs) and settle bills for purchased electricity in full.
Mr Jinapor speaking in a media interview criticized ECG for what he perceives as extravagant spending, citing expenditures on items such as cables, malfunctioning meters, and what he deems as superfluous contracts.
Drawing on a report from the Public Utilities Regulatory Commission (PURC), he underscored instances of alleged fund mismanagement by ECG, accusing the utility provider of diverting substantial sums away from debt repayment to finance other expenditures.
Mr Jinapor has urged ECG to provide transparent explanations for the recent wave of power outages experienced by Ghanaians. He attributes these issues to ECG’s financial mismanagement, highlighting a pattern of imprudent spending and failure to prioritize debt servicing.
“ECG owes $1.5 billion, when they take the money from Ghanaians, they fail to pay the IPPs and use the funds to do whatever they want with it and they fail to pay the full price of the power they purchase and PURC has brought a report that when ECG comes in possession of a substantial amount of money they refuse to pay the debt they owe, they spend the money recklessly, and this is an official report from the PURC.
“Some of the things they buy, they don’t even need it, and now they want to be buying fuel, which is not even their core duty, all these are a reason the finances aren’t adding up,” he remarked.
Mr Jinapor’s assertions highlight systemic concerns within Ghana’s energy sector, prompting calls for heightened accountability and fiscal discipline within ECG’s operations. As stakeholders grapple with the repercussions of ECG’s burgeoning debt and alleged financial mismanagement, attention is firmly focused on the utility provider’s ability to navigate these challenges and restore faith in its financial governance.
