PURC Refutes Media Claims of Imminent Bankruptcy of ECG
The Public Utilities Regulatory Commission (PURC) has dismissed media reports suggesting that the Electricity Company of Ghana (ECG) is facing imminent bankruptcy, describing the claims as misreported and inaccurate.
In a statement signed by its commissioners, PURC clarified that no warning of ECG’s financial collapse had been issued by the Commission, contrary to claims circulating in the media on September 18.
These reports had incorrectly attributed concerns over ECG’s financial stability to PURC’s Executive Secretary, Dr. Ishmael Ackah.
The Commission emphasized that the origins of the financial concerns cited by the media were, in fact, a letter sent by ECG’s management to the Minister of Finance and the Office of the President in late August.
“The ECG in a letter to the Honourable Minister of Finance, referenced MD/MOF/V.10/018 and dated 26th August 2024, with the subject: ‘Request for Buffer Period for Cash Build-Up, expressed serious concerns regarding their current financial situation and warned that ‘this situation if not addressed promptly could lead to severe financial instability and potential bankruptcy for ECG’.”
“The media publications wrongly created the impression that the Commission on its own originated the issue of bankruptcy without an initial appeal from ECG,” stated the PURC.
The letter expressed serious concerns about ECG’s cash flow challenges and warned of potential financial instability if the situation was not promptly addressed.
PURC condemned the misrepresentation of its stance and urged the public to seek accurate information, stating that the media had wrongly suggested that the Commission had initiated concerns over ECG’s financial health independently of the utility company’s communication.
The Commission reaffirmed that while ECG had indeed raised alarms about its financial situation, PURC had not issued any public warnings of bankruptcy, as suggested by several media outlets.
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