[ 2016-06-30 ]

Protests against takeover of ECG misplaced – US Ambassador
The US Ambassador to Ghana, Robert Jackson has
described as misplaced, attempts by workers of the
Electricity Company of Ghana to frustrate the
ceding of part of the management of the
institution, to a private entity.

He insists the ECG is saddled with a persistent
challenge of not being able to meet demand which
makes a pragmatic intervention, undisputed. “I
am aware of their opposition but I think it is
misplaced I do not think that they understand that
this is not privatization.

I think that they need to look at the fact that
ECG is deeply in debt and the company has been
struggling for years to meet demand and this is an
opportunity,” he said. He added, “I believe
that the power sector will be much stronger and
much more reliable and will be able to provide the
industrial base for future growth.”

Government’s attempts to cede part of the
management of the ECG over the institution’s
underperformance have been met with stiff
opposition especially from workers of the power
distributor.

The handing over of part of the management of the
ECG also forms part of the Compact 2 agreement of
the Millennium Challenge Account (MCA) between the
government of Ghana and the Millennium Challenge
Corporation (MCC) of the US.

Under the agreement, US government contributed
498.2 million dollars while the government of
Ghana contributed 37.4 million dollars . This,
therefore, brought the total project funds to
535.6 million dollars. The workers of ECG have
among other things expressed grave concern over
possible job losses.

But speaking to Citi Business News on this
development, Ambassador Robert Jackson further
reiterated of the job security of the workers.

“The ECG workers need to understand they are
guaranteed their jobs for five years, no one will
be fired in the first five years of the
concession; that is part of the agreement,” he
stressed. ECG debts saddle performance The
dwindling fortunes of the ECG have largely been
attributed to the huge debts owed the company.

Accumulated debts owed the ECG is estimated at
1.5 billion cedis by both private and public
consumers.

Meanwhile the Finance Director of the ECG, Frank
Anokwarfo recently at a Public Account Committee
sitting revealed that the state alone owed about
900 million cedis.

But the ECG has within the past few days
commenced cutting power to some state institutions
who are in huge debts. Some of the affected
institutions are the Cape Coast Stadium and the
recently inaugurated Ayensu Starch Factory in
Bawjiase in the Awutu Senya West district of the
Central region.

Meanwhile it has indicated that government has
released funds to the various MMDA’s to settle
outstanding debts owed the ECG.

Source - classfmonline.com

... go Back