Revenues of ESLA were mismanaged under previous government - Mahama

Accra, Ghana - 13 Jan, 2025 - Ghana's President John Dramani Mahama has expressed alarm over the alleged mismanagement of funds generated from the Energy Sector Levy Act (ESLA), revealing that revenues were diverted away from their intended purpose of settling accumulated energy sector debts.

Speaking at a meeting with Independent Power Producers (IPPs) in Accra, President Mahama attributed the mismanagement to the actions of the previous government, which he claims had "other ideas and other ways of trying to do things" after his administration left office. He emphasized that the ESLA, introduced in 2015, was specifically designed to tackle growing debts in Ghana's energy sector and ensure a reliable power supply.

However, the alleged diversion of funds has worsened the challenges facing the sector, particularly for IPPs struggling with payment arrears. President Mahama stressed the need for accountability and prudent management of public funds to restore confidence in the energy sector. He assured the IPPs that his administration is committed to resolving the issues and fostering a sustainable energy environment.

"After we passed it and left office in December the new government came in and they had other ideas and other ways of trying to do things. But unfortunately one of the outcomes was that ESLA was not used for its intended purpose. Revenues of ESLA were mismanaged. So what should have gone to pay down a lot of the debts that has accumulated today was used for other purposes," he stated.

Source: Florence Kyei / Lead News Online