COCOBOD, ECG and Road Fund Owe Billions - Ato Forson reveals
Accra, Ghana - 13 March, 2025 - Ghana's central bank faces significant financial strain, with a negative equity of GHS55 billion, according to Finance Minister Dr. Cassiel Ato Forson.
According to him, the significant financial struggles facing the Bank of Ghana, a legacy of the previous administration, urgently require government intervention to restore stability to the bank's finances.
The finance minister revealed in an interview on 'the Point of View' on Channel One TV on Wednesday March 12, 2025, that the Bank of Ghana's balance sheet is in dire need of a bailout to transition from a negative to a positive equity.
This situation, he noted, is further complicated by significant debts owed by various government entities, including the Road Fund, COCOBOD, and the Electricity Company of Ghana (ECG).
Dr. Forson also specified that the Road Fund owes GHS5.5 billion, while COCOBOD's debt stands at GHS32 billion. The ECG's financial situation is particularly dire, with debts totaling GHS68 billion to suppliers and $1.73 billion to Independent Power Producers (IPPs).
The ECG's struggles are exacerbated by its inability to collect and manage revenue effectively.
He added that despite collecting GHS1.5 billion, the company retains only GHS500 million, paying out a mere GHS1 billion. According to Dr Forson, this has resulted in the government owing IPPs $1.73 billion, in addition to GHS68 billion owed to suppliers.
“Road Fund owing about GHS5.5 billion, then you have the likes of GETFund, DACF they have their own debt. Then COCOBOD, ECG. COCOBOD owes GHS32 billion, ECG owes GHS68 billion. They owe contractors who have done work,” he stated.
“ECG’s situation is so bad that they are supposed to collect the power that they consume. Unfortunately, they buy the power they are supposed to sell to consumers like yourself, collect the money and pay, but the data we’ve seen so far shows ECG collects like GHS1.5 billion, keeps GHS500 million, and pays only GHS1 billion.
“As a result, they are unable to pay IPPs, and as we speak, the government of Ghana through ECG owes IPPs $1.73 billion. Coupled with the $1.70 billion, they also owe suppliers another GHS68 billion,” he added.
Source: Lead News Online
