John Jinapor, Ghana’s Minister-Designate for Energy, has instructed the Electricity Company of Ghana (ECG) to immediately halt all payments for supplies, as part of efforts to address inefficiencies and restore stability to the country’s power sector.

In a statement issued on Thursday, January 9, 2025, Jinapor warned ECG staff, particularly within the finance directorate, that failure to comply with the directive would result in serious consequences.

Speaking in an interview on Eyewitness News, the Minister-Designate highlighted the significant revenue losses faced by ECG, citing challenges in managing more than 70 accounts within the company. This, he said, has made it difficult to effectively monitor and control the financial operations of the power distributor.

Jinapor attributed part of the issue to inefficiencies within the system, noting that ECG currently loses over 40% of the power it generates, compared to losses of just 2-4% in other countries. As a result, ECG is only able to collect 60% of the revenue from power sales, with further deductions made for various contracts, quality assurance, and IT services.

“We cannot continue this way,” Jinapor said. “We need serious reforms to streamline ECG’s operations and improve its efficiency.”

The Minister-Designate also revealed that the government, under the direction of the Chief of Staff, has ordered the suspension of all payments for supplies, stressing that any violation of this directive would lead to significant repercussions.

As part of the broader reform agenda, Jinapor outlined plans to close the numerous accounts held by ECG, in an effort to simplify and better manage the company’s finances.

Source:TheDotNews