Seize all payments for supplies - John Jinapor orders ECG
Accra, Ghana - 10 Jan, 2025 - In a bold move to tackle inefficiencies and stabilize the power sector, Minister-Designate for Energy, John Jinapor, has ordered the Electricity Company of Ghana (ECG) to immediately suspend all payments for supplies.
This directive is aimed at addressing the significant revenue losses faced by ECG, which has been struggling to manage over 70 accounts within the company.
In an interview on Eyewitness News on Thursday, January 9, 2025, Jinapor emphasized that the challenge of revenue losses stems from inefficiencies, citing that ECG loses over 40% of its power generated.
According to him, in contrast, other countries have managed to keep losses at around 2-4%. The Energy Minister-Designate warned ECG staff, particularly those in the finance directorate, that serious consequences would follow if the directive is ignored.
“The challenge of money emanates from inefficiencies. Because if ECG loses over 40% of its power generated, no matter what you do, you cannot find a solution. Other countries are doing just about 2-4% losses. So, with this $100 worth of power, you buy and sell, you collect only 60% and even with that, there are so many contracts, quality assurance, IT, provision and others.
“They are all deducting monies at the source. So, I have told the ECG, and this is also an instruction from the Chief of Staff, to seize all payment for supplies and I mean it. I have told them and if anybody is listening and is within ECG, whether the finance directorate, this was the instruction we gave them yesterday.
“Please don’t and I mean it, because there are serious consequences if you flout this directive. We need some serious buffers to anchor the system. All those numerous accounts will be closed. They have over 70 accounts and they cannot monitor that, so we need to reform that sector and we will reform that sector,” he added.
Source: Lead News Online
